Application Programming Interface - API

Categories: Tech

APIs are a really big thing for everyone doing business remotely on the Internet. Specifically, an API is a set of rules or guidelines amongst software coders, which state the way in which information is both digested and regurgitated in transactions under a wide umbrella of flavors.

Were it not for a standardized set of rules, when data was received, the computers would have no idea whether that number it is receiving is a checking account, a phone number, a credit card number, or a waist size. APIs narrow the field and allow (usually) for fewer computer errors.



Find other enlightening terms in Shmoop Finance Genius Bar(f)