ELI5: Explain Like I'm 5

ASC X12

ASC X12 is a group of letters and numbers that is used to talk about a special way of sharing information. Think of it like a secret code that grown-ups use to send important messages to each other.

When grown-ups need to send information, like how much money to pay for something, they usually use a paper form or a computer program to enter the information. But sometimes, they need to send information electronically (like on the computer), and that's where ASC X12 comes in.

ASC X12 is actually a set of rules that helps people send electronic information in a way that everyone can understand. It's like having a set of directions that everyone must follow for the letter or message to be understood the same way by everybody.

For example, imagine you want to buy a toy online. When you go to the website and select the toy, you will be asked to fill out some information like your name, address, and credit card details. This information is sent through the internet to the toy store. However, there are thousands of toy stores in the world, using different software and systems to manage their websites. So without a set of standard rules (ASC X12) for electronic information sharing, each toy store would need different software to process and understand the information you send them. That would make things really confusing and time-consuming!

Thanks to ASC X12, toy stores, banks, hospitals, and other businesses can all use the same rules for electronic information sharing so that everyone can understand the messages they're getting. It's kind of like having the same map that everyone uses to get to the same place without getting lost.