SOC 2, HIPAA, ISO: The Compliance Stack You Should Expect from an EDI VAN

When you start looking at EDI Value-Added Networks (VANs) for your business, compliance should be at the top of your list. For any organization handling sensitive data—especially in regulated sectors like healthcare, retail, or manufacturing—you need a provider that is transparent about its controls. But you probably do not want a lecture on frameworks or a vague product pitch. What matters is understanding why frameworks like SOC 2, HIPAA, and ISO 27001 stand out, what each one actually covers, and what you should reasonably expect from the EDI VAN you trust with your data flows and trading partner relationships.

Why Compliance Matters for Every EDI VAN User

Compliance frameworks are the real anchors for trust in the world of EDI. You are not just exchanging invoices and order files. You are moving sensitive partner and customer data, sometimes between many global jurisdictions. If an EDI VAN cuts corners with security or lacks up-to-date certifications, you risk fines, audit headaches, and lost business. But not every compliance label carries the same weight, so it helps to break down what is meaningful for your decision—especially if you are an IT director, CFO, or anyone who answers to a board.

SOC 2: Your Baseline for Operational Security

You want confirmation that your provider takes data handling seriously every day, not just for an audit. SOC 2 Type II certification is the industry norm for a reason—it signals that a provider is consistently meeting critical controls over a sustained period. For an EDI VAN, it is your best assurance that controls for data security, availability, integrity, confidentiality, and privacy are not just documented but working as promised.

• Security: Look for access controls, regular monitoring, and strong encryption methods for data at rest and in transit.
• Availability: Your VAN should keep your messages moving, targeting 99.998 percent uptime or better, as well as transparent SLA reporting.
• Processing Integrity: Your documents must reach their endpoints complete and unmodified. Controls in this area matter for trust in trading relationships.
• Confidentiality and Privacy: Assurance that only authorized parties see your data and that your business can control what gets shared.

Ask the VAN provider to show you a summary of their latest SOC 2 Type II audit. Do not accept anything less. Watch for unexplained carve-outs or recent exceptions.

HIPAA: Non-Negotiable for Healthcare Data

If any piece of your EDI operation touches healthcare—think hospitals, insurers, pharma, or pharmacy chains—HIPAA compliance is not a box you can skip. HIPAA goes further than generic security practices and sets out specific requirements for handling Protected Health Information (PHI):

• Administrative Safeguards: Ongoing risk assessments, documented protocols, and workforce training on privacy regulations.
• Technical Safeguards: Required encryption standards, audit logging specific to PHI, and unique IDs for access tracking.
• Physical Safeguards: Restricted building and device access, audit trails for media movement, secured workstations for any PHI-processing action.

You should be able to review business associate agreements (BAAs), see clear evidence of PHI-specific access logs, and validate that the VAN provider understands HIPAA’s minimum necessary principle for data exposure. Missing these points is a liability to your company and to your healthcare trading partners. If you want to learn more about EDI and healthcare, you can refer to our blog on EDI data formats and healthcare integrations.

ISO 27001: Global Standard for Information Security Management

While SOC 2 is widely recognized in the United States, ISO 27001 is often the go-to standard for international businesses and for organizations sharing EDI data across country borders. ISO 27001 structures the full information security management system, spanning everything from asset management to cryptographic controls and business continuity planning.

• Covers procurement, supplier relationships, and incident management
• Aligns with GDPR, Canadian PIPEDA, and other data privacy requirements if you exchange EDI with partners outside the US
• Signals maturity to enterprise partners who have their own mandatory compliance requirements

When global trade and cross-border logistics are core to your operation, or you work with multi-national retail and supply networks, ISO 27001 should become a key talking point in your due diligence.

The Overlap and Limits of Compliance Frameworks

SOC 2, HIPAA, and ISO 27001 often repeat themes—encryption, regular audits, and defined access control policies. Where they differ is their focus and required approach. SOC 2 is about operational proof over time. HIPAA is explicit about health data protection and has legal penalties for gaps. ISO 27001 is systematic and wide-ranging, setting a roadmap for keeping up with global security trends. The best EDI VAN providers maintain all three for maximum coverage, but at a minimum, you should insist on SOC 2 Type II and HIPAA if you deal with health information.

Questions You Should Ask Any EDI VAN Provider

• Can we review your most recent SOC 2 Type II audit report? What is the scope and period?
• Are you prepared to sign and enforce a Business Associate Agreement (BAA) for HIPAA if we move healthcare data?
• What encryption standards do you use at rest and in transit? Are you meeting or exceeding regulatory minimums?
• How is access to sensitive documents logged and audited? Who can see our data?
• If there is a breach, what is your documented incident response timeline and notification process?
• Do you have ISO 27001 certification, especially if we need to address international requirements?
• What is your actual production uptime over the last year, and how do you monitor SLAs?

Providers that are open and confident about their compliance should answer clearly and back it with current documentation. If you get vague replies, or excuses about sharing certifications, go carefully. That is a red flag you cannot afford to ignore.

Why Skipping Compliance Costs You More Than It Saves

It can be tempting to overlook strict compliance if you are chasing lower EDI VAN fees, but this is short-term thinking. The moment you face a formal audit, endure a breach, or get a difficult question from a critical trading partner, any cost savings disappear instantly—and, in some cases, you risk legal trouble or contract termination.

Organizations often underestimate the operational friction that comes from compliance gaps. Internally, your audit and security teams will spend extra cycles hounding providers for basic answers. Externally, partners with stricter requirements may shut you out or delay onboarding. Instead of relying on promises, use compliance documentation as a shield for your operations and reputation.

What Migration Should Look Like, with Compliance Built In

Changing EDI VANs is one of the major points of anxiety for enterprise IT teams, especially if you have a duty to maintain compliance from day one. But migration does not have to threaten your compliance posture. An experienced team with real certifications should be able to demonstrate secure data transfer, audit logs at every stage, and full transparency throughout the project.

Providers like Nexus VAN use migration dashboards and encrypted pipelines specifically to give you insight and peace of mind. You are not forced into downtime or compliance risk just for switching. For more on reducing risk throughout a migration, see our detailed write-up on minimal-risk EDI vendor transitions.

Building Confidence in Your EDI Stack

Your board will thank you for a defensible compliance stack in your EDI operations. Finance teams gain predictability, IT benefits from best-in-class security features, and legal knows the right documentation is immediately available. When choosing or switching your EDI VAN, focus on providers that have up-to-date SOC 2 Type II reports, documented HIPAA procedures if you work with PHI, and ISO 27001 if global reach matters for your business.

You deserve transparency not just around compliance, but around cost as well. Solutions like Nexus VAN use pricing by the kilo-character model so you never pay more for your data transmission than you should—no rounding up, no hidden mailbox or per-message fees. If your current provider cannot answer your compliance questions or you are worried about overcharges, consider making the switch to a team committed to operational reliability, transparency, and risk-free onboarding. Book a conversation or request a trial from our main site any time.