Internet Open Trading Protocol is an IETFspecification 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 XMLformat) 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.
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...
Stay up to date on the latest developments in Internet terminology with a free weekly newsletter from Webopedia. Join to subscribe now.
The following facts and statistics capture the changing landscape of cloud computing and how service providers and customers are keeping up with... Read More »Facts about Computer Science: Education and Jobs
The following computer science facts and statistics provide a quick introduction to the changing trends in education and related careers. Read More »Texting & Chat Abbreviations
From A3 to ZZZ this guide lists 1,500 text message and online chat abbreviations to help you translate and understand today's texting lingo. Read More »
Learn about each of the five generations of computers and major technology developments that have led to the computing devices that we use... Read More »Computer Architecture Study Guide
Computer architecture provides an introduction to system design basics for most computer science students. Read More »Network Fundamentals Study Guide
Networking fundamentals teaches the building blocks of modern network design. Learn different types of networks, concepts, architecture and... Read More »