IOTPInternet Open Trading Protocol is an IETF specification which defines a way to create a trading environment that is more reliable and personal than existing methods by giving the consumer more opportunities to interact directly with all parties of a transaction.
IOTP focuses on the transaction process; therefore, it is application and payment system independent.
IOTP relies on standard "Trading Components" to define and keep track of all the stages of an e-commerce transaction. Parties involved use these Trading Components to send and receive the necessary information (always in XML format) to execute the deal.
Here's an example of how a simple payment-exchange transaction works:
Let's say a consumer shows interest in a merchant's product.
The merchant decides which payment brands (Visa, MasterCard, DigiCash, etc.,), protocols, and currency denominations he will accept. He then sends that info to the consumer using the Brand List Component.
The consumer makes his choices and sends them back to the merchant using a Brand Selection Component.
The merchant creates a Payment Component that details the payment selection and provides payment directions. He also creates an Organization Component that recognizes the payment handler and merchant roles.
The consumer checks the information, then uses the Status Component to let the payment handler know the deal is good to go.
The payment handler checks the information. If everything looks legit, he swaps Payment Scheme Components for payment brand and payment protocol.
Finally, receipt is delivered to the consumer via the Payment Receipt Component.
As transactions become more complex and involve more players, the need for more Trading Components becomes necessary.
The future remains, well, cloudy. But either way: Amazon, look out. Microsoft is gaining fast. Read More »Hype Versus Action in the Developer's World
Often times technologies start as hype but with time become adopted. As a developer or technologist, it is worth reading the hype and knowing the... Read More »Microsoft Hyper-V Network Virtualization Q&A
The top 5 Hyper-V questions with answers provided by Nirmal Sharma, a MCSEx3, MCITP and Microsoft MVP in Directory Services. Read More »
This Webopedia guide will show you how to create a desktop shortcut to a website using Firefox, Chrome or Internet Explorer (IE). Read More »Flash Data Storage Vendor Trends
Although it is almost impossible to keep up with the pace of ongoing product releases, here are three recent highlights in the flash data storage... Read More »15 Important Big Data Facts for IT Professionals
Keeping track of big data trends, research and statistics gives IT professionals a solid foundation to plan big data projects. Here are 15... Read More »
Stay up to date on the latest developments in Internet terminology with a free weekly newsletter from Webopedia. Join to subscribe now.
- Watch Datamation's editor James Maguire moderate roundtable discussions with tech experts from companies such as Accenture, Dell, Blue Jeans Network, Microsoft and more »