A text-based markup language for structuring data with custom tags, used by OFX 2.x, CAMT.053, and many other financial data standards. Human-readable and machine-parseable.
Understanding XML (Extensible Markup Language)
XML (Extensible Markup Language) is a text-based markup language designed for storing and transporting structured data using custom-defined tags. Unlike HTML (which has predefined tags for displaying content), XML allows users to define their own tags to describe the data they contain.
XML is the foundation of many financial data standards: OFX 2.x, CAMT.053, ISO 20022 messages, and numerous banking APIs use XML to structure financial information. Its self-describing nature (data is wrapped in meaningful tags like <Amount> or <PayeeName>) makes it both human-readable and machine-parseable.
Key XML rules include: every opening tag must have a closing tag, tags are case-sensitive, elements must be properly nested, and attribute values must be quoted. XML documents can optionally reference a schema (XSD) that defines the valid structure, tags, and data types — which is how standards like OFX and CAMT.053 enforce their format rules.
Why It Matters for Ecommerce
XML is the lingua franca of financial data exchange. When you work with QBO files, OFX downloads, CAMT.053 statements, or banking APIs, you're working with XML. A basic understanding of XML structure helps you troubleshoot import issues, read file contents, and verify that conversion tools are producing valid output.
Practical Example
A simple XML bank transaction: <Transaction> <Date>2026-02-15</Date> <Amount>-250.00</Amount> <Payee>Office Supplies Inc</Payee> <Type>Debit</Type> </Transaction> Each piece of data is wrapped in descriptive tags, making it clear what each value represents without any external documentation.
Related Terms
SGML (Standard Generalized Markup Language)
A meta-language for defining markup languages, and the original basis for OFX 1.x file format (before OFX 2.x moved to XML). OFX 1.x files use SGML syntax without closing tags.
File FormatOFX (Open Financial Exchange)
An open standard XML-based format for exchanging financial data between institutions, software, and services. Supports bank statements, credit card statements, and investment data.
File FormatCAMT.053 (ISO 20022 Bank-to-Customer Statement)
An XML-based bank statement format defined by the ISO 20022 standard, designed to replace MT940. Provides richer, more structured transaction data and is being adopted globally.
File FormatISO 20022
An international standard for electronic financial messaging that defines a common platform for payments, securities, and bank statements. CAMT.053 is the bank statement message within this standard.
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