RFC 2801
Internet Open Trading Protocol - IOTP Version 1.0
Pages: 290
Informational
Informational
Part 1 of 9 – Pages 1 to 28
Network Working Group D. Burdett Request for Comments: 2801 Commerce One Category: Informational April 2000 Internet Open Trading Protocol - IOTP Version 1.0 Status of this Memo This memo provides information for the Internet community. It does not specify an Internet standard of any kind. Distribution of this memo is unlimited. Copyright Notice Copyright (C) The Internet Society (2000). All Rights Reserved.Abstract
The Internet Open Trading Protocol (IOTP) provides an interoperable framework for Internet commerce. It is payment system independent and encapsulates payment systems such as SET, Secure Channel Credit/Debit, Mondex, CyberCoin, GeldKarte, etc. IOTP is able to handle cases where such merchant roles as the shopping site, the Payment Handler, the Delivery Handler of goods or services, and the provider of customer support are performed by different parties or by one party.Table of Contents
1. Background .....................................................7 1.1 Commerce on the Internet, a Different Model .................7 1.2 Benefits of IOTP ............................................9 1.3 Baseline IOTP ..............................................10 1.4 Objectives of Document .....................................10 1.5 Scope of Document ..........................................11 1.6 Document Structure .........................................11 1.7 Intended Readership ........................................13 1.7.1 Reading Guidelines ...................................13 2. Introduction ..................................................14 2.1 Trading Roles ..............................................16 2.2 Trading Exchanges ..........................................18 2.2.1 Offer Exchange .......................................19 2.2.2 Payment Exchange .....................................21 2.2.3 Delivery Exchange ....................................24 2.2.4 Authentication Exchange ..............................26 2.3 Scope of Baseline IOTP .....................................28
3. Protocol Structure ............................................31 3.1 Overview ...................................................32 3.1.1 IOTP Message Structure ...............................32 3.1.2 IOTP Transactions ....................................34 3.2 IOTP Message ...............................................35 3.2.1 XML Document Prolog ..................................37 3.3 Transaction Reference Block ................................37 3.3.1 Transaction Id Component .............................38 3.3.2 Message Id Component .................................39 3.3.3 Related To Component .................................41 3.4 ID Attributes ..............................................42 3.4.1 IOTP Message ID Attribute Definition .................43 3.4.2 Block and Component ID Attribute Definitions .........44 3.4.3 Example of use of ID Attributes ......................46 3.5 Element References .........................................46 3.6 Extending IOTP .............................................48 3.6.1 Extra XML Elements ...................................49 3.6.2 Opaque Embedded Data .................................50 3.7 Packaged Content Element ...................................50 3.7.1 Packaging HTML .......................................52 3.7.2 Packaging XML ........................................53 3.8 Identifying Languages ......................................54 3.9 Secure and Insecure Net Locations ..........................54 3.10 Cancelled Transactions .....................................55 3.10.1 Cancelling Transactions ..............................55 3.10.2 Handling Cancelled Transactions ......................56 4. IOTP Error Handling ...........................................56 4.1 Technical Errors ...........................................57 4.2 Business Errors ............................................57 4.3 Error Depth ................................................58 4.3.1 Transport Level ......................................58 4.3.2 Message Level ........................................58 4.3.3 Block Level ..........................................59 4.4 Idempotency, Processing Sequence, and Message Flow .........61 4.5 Server Role Processing Sequence ............................62 4.5.1 Initiating Transactions ..............................62 4.5.2 Processing Input Messages ............................63 4.5.3 Cancelling a Transaction .............................70 4.5.4 Retransmitting Messages ..............................70 4.6 Client Role Processing Sequence ............................71 4.6.1 Initiating Transactions ..............................71 4.6.2 Processing Input Messages ............................72 4.6.3 Cancelling a Transaction .............................74 4.6.4 Retransmitting Messages ..............................74 5. Security Considerations .......................................74 5.1 Determining whether to use digital signatures ..............74 5.2 Symmetric and Asymmetric Cryptography ......................76 5.3 Data Privacy ...............................................77
5.4 Payment Protocol Security ..................................77
6. Digital Signatures and IOTP ...................................77
6.1 How IOTP uses Digital Signatures ...........................77
6.1.1 IOTP Signature Example ...............................80
6.1.2 OriginatorInfo and RecipientInfo Elements ............82
6.1.3 Using signatures to Prove Actions Complete
Successfully .........................................83
6.2 Checking a Signature is Correctly Calculated ...............84
6.3 Checking a Payment or Delivery can occur ...................85
6.3.1 Check Request Block sent Correct Organisation ........86
6.3.2 Check Correct Components present in Request Block ....91
6.3.3 Check an Action is Authorised ........................91
7. Trading Components ............................................93
7.1 Protocol Options Component .................................96
7.2 Authentication Request Component ...........................97
7.3 Authentication Response Component ..........................98
7.4 Trading Role Information Request Component .................99
7.5 Order Component ...........................................100
7.5.1 Order Description Content ...........................101
7.5.2 OkFrom and OkTo Timestamps ..........................101
7.6 Organisation Component ....................................102
7.6.1 Organisation IDs ....................................104
7.6.2 Trading Role Element ................................105
7.6.3 Contact Information Element .........................108
7.6.4 Person Name Element .................................109
7.6.5 Postal Address Element ..............................110
7.7 Brand List Component ......................................111
7.7.1 Brand Element .......................................113
7.7.2 Protocol Brand Element ..............................115
7.7.3 Protocol Amount Element .............................116
7.7.4 Currency Amount Element .............................117
7.7.5 Pay Protocol Element ................................118
7.8 Brand Selection Component .................................120
7.8.1 Brand Selection Brand Info Element ..................122
7.8.2 Brand Selection Protocol Amount Info Element ........122
7.8.3 Brand Selection Currency Amount Info Element ........123
7.9 Payment Component .........................................123
7.10 Payment Scheme Component ..................................125
7.11 Payment Receipt Component .................................126
7.12 Payment Note Component ....................................128
7.13 Delivery Component ........................................129
7.13.1 Delivery Data Element ...............................130
7.14 Consumer Delivery Data Component ..........................132
7.15 Delivery Note Component ...................................133
7.16 Status Component ..........................................134
7.16.1 Offer Completion Codes ..............................137
7.16.2 Payment Completion Codes ............................138
7.16.3 Delivery Completion Codes ...........................140
7.16.4 Authentication Completion Codes .....................142
7.16.5 Undefined Completion Codes ..........................144
7.16.6 Transaction Inquiry Completion Codes ................144
7.17 Trading Role Data Component ...............................144
7.17.1 Who Receives a Trading Role Data Component ..........145
7.18 Inquiry Type Component ....................................146
7.19 Signature Component .......................................147
7.19.1 IOTP usage of signature elements and attributes .....148
7.19.2 Offer Response Signature Component ..................150
7.19.3 Payment Receipt Signature Component .................151
7.19.4 Delivery Response Signature Component ...............152
7.19.5 Authentication Request Signature Component ..........152
7.19.6 Authentication Response Signature Component .........153
7.19.7 Inquiry Request Signature Component .................153
7.19.8 Inquiry Response Signature Component ................153
7.19.9 Ping Request Signature Component ....................153
7.19.10 Ping Response Signature Component...................154
7.20 Certificate Component .....................................154
7.20.1 IOTP usage of signature elements and attributes .....154
7.21 Error Component ...........................................154
7.21.1 Error Processing Guidelines .........................157
7.21.2 Error Codes .........................................158
7.21.3 Error Location Element ..............................162
8. Trading Blocks ...............................................163
8.1 Trading Protocol Options Block ............................166
8.2 TPO Selection Block .......................................167
8.3 Offer Response Block ......................................168
8.4 Authentication Request Block ..............................169
8.5 Authentication Response Block .............................170
8.6 Authentication Status Block ...............................171
8.7 Payment Request Block .....................................171
8.8 Payment Exchange Block ....................................173
8.9 Payment Response Block ....................................173
8.10 Delivery Request Block ....................................175
8.11 Delivery Response Block ...................................176
8.12 Inquiry Request Trading Block .............................177
8.13 Inquiry Response Trading Block ............................177
8.14 Ping Request Block ........................................179
8.15 Ping Response Block .......................................179
8.16 Signature Block ...........................................181
8.16.1 Signature Block with Offer Response .................182
8.16.2 Signature Block with Payment Request ................182
8.16.3 Signature Block with Payment Response ...............182
8.16.4 Signature Block with Delivery Request ...............182
8.16.5 Signature Block with Delivery Response ..............182
8.17 Error Block ...............................................183
8.18 Cancel Block ..............................................184
9. Internet Open Trading Protocol Transactions ..................184
9.1 Authentication and Payment Related IOTP Transactions ......185
9.1.1 Authentication Document Exchange ....................188
9.1.2 Offer Document Exchange .............................194
9.1.3 Payment Document Exchange ...........................203
9.1.4 Delivery Document Exchange ..........................209
9.1.5 Payment and Delivery Document Exchange ..............212
9.1.6 Baseline Authentication IOTP Transaction ............216
9.1.7 Baseline Deposit IOTP Transaction ...................218
9.1.8 Baseline Purchase IOTP Transaction ..................220
9.1.9 Baseline Refund IOTP Transaction ....................222
9.1.10 Baseline Withdrawal IOTP Transaction ................224
9.1.11 Baseline Value Exchange IOTP Transaction ............226
9.1.12 Valid Combinations of Document Exchanges ............230
9.1.13 Combining Authentication Transactions with other
Transactions ........................................234
9.2 Infrastructure Transactions ...............................235
9.2.1 Baseline Transaction Status Inquiry IOTP Transaction 235
9.2.2 Baseline Ping IOTP Transaction ......................241
10. Retrieving Logos .............................................244
10.1 Logo Size .................................................245
10.2 Logo Color Depth ..........................................245
10.3 Logo Net Location Examples ................................246
11. Brands .......................................................246
11.1 Brand Definitions and Brand Selection .....................246
11.1.1 Definition of Payment Instrument ....................247
11.1.2 Definition of Brand .................................247
11.1.3 Definition of Dual Brand ............................248
11.1.4 Definition of Promotional Brand .....................248
11.1.5 Identifying Promotional Brands ......................249
11.2 Brand List Examples .......................................251
11.2.1 Simple Credit Card Based Example ....................252
11.2.2 Credit Card Brand List Including Promotional Brands..253
11.2.3 Brand Selection Example .............................254
11.2.4 Complex Electronic Cash Based Brand List ............255
12. IANA Considerations ..........................................257
12.1 Codes Controlled by IANA ..................................257
12.2 Codes not controlled by IANA ..............................263
13. Internet Open Trading Protocol Data Type Definition ..........263
14. Glossary .....................................................277
15. References ...................................................284
16. Author's Address .............................................287
17. Full Copyright Statement .....................................290
Table of Figures
Figure 1 IOTP Trading Roles 16
Figure 2 Offer Exchange 19
Figure 3 Payment Exchange 22
Figure 4 Delivery Exchange 25
Figure 5 Authentication Exchange 27
Figure 6 IOTP Message Structure 33
Figure 7 An IOTP Transaction 34
Figure 8 Example use of ID attributes 46
Figure 9 Element References 48
Figure 10 Signature Digests 79
Figure 11 Example use of Signatures for Baseline Purchase 81
Figure 12 Checking a Payment Handler can carry out a Payment 87
Figure 13 Checking a Delivery Handler can carry out a Delivery 90
Figure 14 Trading Components 94
Figure 15 Brand List Element Relationships 113
Figure 16 Trading Blocks 164
Figure 17 Payment and Authentication Message Flow Combinations 187
Figure 18 Authentication Document Exchange 190
Figure 19 Brand Dependent Offer Document Exchange 196
Figure 20 Brand Independent Offer Exchange 198
Figure 21 Payment Document Exchange 204
Figure 22 Delivery Document Exchange 210
Figure 23 Payment and Delivery Document Exchange 214
Figure 24 Baseline Authentication IOTP Transaction 217
Figure 25 Baseline Deposit IOTP Transaction 219
Figure 26 Baseline Purchase IOTP Transaction 221
Figure 27 Baseline Refund IOTP Transaction 223
Figure 28 Baseline Withdrawal IOTP Transaction 225
Figure 29 Baseline Value Exchange IOTP Transaction 228
Figure 30 Baseline Value Exchange Signatures 230
Figure 31 Valid Combinations of Document Exchanges 231
Figure 32 Baseline Transaction Status Inquiry 238
Figure 33 Baseline Ping Messages 242
1. Background
The Internet Open Trading Protocol (IOTP) provides an interoperable framework for Internet commerce. It is payment system independent and encapsulates payment systems such as SET, Mondex, CyberCash, DigiCash, GeldKarte, etc. IOTP is able to handle cases where such merchant roles as the shopping site, the Payment Handler, the Delivery Handler of goods or services, and the provider of customer support are performed by different parties or by one party. The developers of IOTP seek to provide a virtual capability that safely replicates the real world, the paper based, traditional, understood, accepted methods of trading, buying, selling, value exchanging that has existed for many hundreds of years. The negotiation of who will be the parties to the trade, how it will be conducted, the presentment of an offer, the method of payment, the provision of a payment receipt, the delivery of goods and the receipt of goods. These are events that are taken for granted in the course of real world trade. IOTP has been produced to provide the same for the virtual world, and to prepare and provide for the introduction of new models of trading made possible by the expanding presence of the virtual world. The other fundamental ideal of the IOTP effort is to produce a definition of these trading events in such a way that no matter where produced, two unfamiliar parties using electronic commerce capabilities to buy and sell that conform to the IOTP specifications will be able to complete the business safely and successfully. In summary, IOTP supports: o Familiar trading models o New trading models o Global interoperability The remainder of this section provides background to why IOTP was developed. The specification itself starts in the next chapter.1.1 Commerce on the Internet, a Different Model
The growth of the Internet and the advent of electronic commerce are bringing about enormous changes around the world in society, politics and government, and in business. The ways in which trading partners communicate, conduct commerce, are governed have been enriched and changed forever.
One of the very fundamental changes about which IOTP is concerned is
taking place in the way consumers and merchants trade.
Characteristics of trading that have changed markedly include:
o Presence: Face-to-face transactions become the exception, not the
rule. Already with the rise of mail order and telephone order
placement this change has been felt in western commerce.
Electronic commerce over the Internet will further expand the
scope and volume of transactions conducted without ever seeing the
people who are a part of the enterprise with whom one does
business.
o Authentication: An important part of personal presence is the
ability of the parties to use familiar objects and dialogue to
confirm they are who they claim to be. The seller displays one or
several well known financial logos that declaim his ability to
accept widely used credit and debit instruments in the payment
part of a purchase. The buyer brings government or financial
institution identification that assures the seller she will be
paid. People use intangibles such as personal appearance and
conduct, location of the store, apparent quality and familiarity
with brands of merchandise, and a good clear look in the eye to
reinforce formal means of authentication.
o Payment Instruments: Despite the enormous size of bank card
financial payments associations and their members, most of the
world's trade still takes place using the coin of the realm or
barter. The present infrastructure of the payments business cannot
economically support low value transactions and could not survive
under the consequent volumes of transactions if it did accept low
value transactions.
o Transaction Values: New meaning for low value transactions arises
in the Internet where sellers may wish to offer for example, pages
of information for fractions of currency that do not exist in the
real world.
o Delivery: New modes of delivery must be accommodated such as
direct electronic delivery. The means by which receipt is
confirmed and the execution of payment change dramatically where
the goods or services have extremely low delivery cost but may in
fact have very high value. Or, maybe the value is not high, but
once delivery occurs the value is irretrievably delivered so
payment must be final and non-refundable but delivery nonetheless
must still be confirmed before payment. Incremental delivery such
as listening or viewing time or playing time are other models that
operate somewhat differently in the virtual world.
1.2 Benefits of IOTP
ELECTRONIC COMMERCE SOFTWARE VENDORS Electronic Commerce Software Vendors will be able to develop e- commerce products which are more attractive as they will inter- operate with any other vendors' software. However, since IOTP focuses on how these solutions communicate, there is still plenty of opportunity for product differentiation. PAYMENT BRANDS IOTP provides a standard framework for encapsulating payment protocols. This means that it is easier for payment products to be incorporated into IOTP solutions. As a result the payment brands will be more widely distributed and available on a wider variety of platforms. MERCHANTS There are several benefits for Merchants: o they will be able to offer a wider variety of payment brands, o they can be more certain that the customer will have the software needed to complete the purchase o through receiving payment and delivery receipts from their customers, they will be able to provide customer care knowing that they are dealing with the individual or organisation with which they originally traded o new merchants will be able to enter this new (Internet) market- place with new products and services, using the new trading opportunities which IOTP presents BANKS AND FINANCIAL INSTITUTIONS There are also several benefits for Banks and Financial Institutions: o they will be able to provide IOTP support for merchants o they will find new opportunities for IOTP related services: - providing customer care for merchants - fees from processing new payments and deposits
o they have an opportunity to build relationships with new types of
merchants
CUSTOMERS
For Customers there are several benefits:
o they will have a larger selection of merchants with whom they can
trade
o there is a more consistent interface when making the purchase
o there are ways in which they can get their problems fixed through
the merchant (rather than the bank!)
o there is a record of their transaction which can be used, for
example, to feed into accounting systems or, potentially, to
present to the tax authorities
1.3 Baseline IOTP
This specification is Baseline IOTP. It is a Baseline in that it
contains ways of doing trades on the Internet which are the most
common, for example purchases and refunds.
The group that has worked on the IOTP see an extended version being
developed over time but feel a need to focus on a limited function
but completely usable specification in order that implementers can
develop solutions that work now.
During this period it is anticipated that there will be no changes to
the scope of this specification with the only changes made being
limited to corrections where problems are found. Software solutions
have been developed based on earlier versions of this specification
(for example version 0.9 published in early 1998 and earlier
revisions of version 1.0 published during 1999) which prove that the
IOTP works.
1.4 Objectives of Document
The objectives of this document are to provide a specification of
version 1.0 of the Internet Open Trading Protocols which can be used
to design and implement systems which support electronic trading on
the Internet using the Internet Open Trading Protocols.
The purpose of the document is:
o to allow potential developers of products based on the protocol to
develop software/hardware solutions which use the protocol
o to allow the financial services industry to understand a
developing electronic commerce trading protocol that encapsulates
(without modification) any of the current or developing payment
schemes now being used or considered by their merchant customer
base
1.5 Scope of Document
The protocol describes the content, format and sequences of messages
that pass among the participants in an electronic trade - consumers,
merchants and banks or other financial institutions, and customer
care providers. These are required to support the electronic
commerce transactions outlined in the objectives above.
The protocol is designed to be applicable to any electronic payment
scheme since it targets the complete purchase process where the
movement of electronic value from the payer to the payee is only one,
but important, step of many that may be involved to complete the
trade.
Payment Scheme which IOTP could support include MasterCard Credit,
Visa Credit, Mondex Cash, Visa Cash, GeldKarte, eCash, CyberCoin,
Millicent, Proton, etc.
Each payment scheme contains some message flows which are specific to
that scheme. These scheme-specific parts of the protocol are
contained in a set of payment scheme supplements to this
specification.
The document does not prescribe the software and processes that will
need to be implemented by each participant. It does describe the
framework necessary for trading to take place.
This document also does not address any legal or regulatory issues
surrounding the implementation of the protocol or the information
systems which use them.
1.6 Document Structure
The document consists of the following sections:
o Section 1 - Background: This section gives a brief background on
electronic commerce and the benefits IOTP offers.
o Section 2 - Introduction: This section describes the various Trading Exchanges and shows how these trading exchanges are used to construct the IOTP Transactions. This section also explains various Trading Roles that would participate in electronic trade. o Section 3 - Protocol Structure: This section summarises how various IOTP transactions are constructed using the Trading Blocks and Trading Components that are the fundamental building blocks for IOTP transactions. All IOTP transaction messages are well formed XML documents. o Section 4 - IOTP Error Handling: This section describes how to process exceptions and errors during the protocol message exchange and trading exchange processing. This section provides a generic overview of the exception handling. This section should be read carefully. o Section 5 - Security Considerations: This section considers from an IETF perspective, how IOTP addresses security. It includes: how to determine whether to use digital signatures with IOTP, how IOTP address data privacy, and how security built into payment protocols relate to IOTP security. o Section 6 - Digital Signatures and IOTP: This section provides an overview of how IOTP uses digital signatures; how to check a signature is correctly calculated and how the various Trading Roles that participate in trade should check signatures when required. o Section 7 - Trading Components: This section defines the XML elements required by Trading Components. o Section 8 - Trading Blocks: This section describes how Trading Blocks are constructed from Trading Components. o Section 9 - Internet Open Trading Protocol Transactions: This section describes all the IOTP Baseline transactions. It refers to Trading Blocks and Trading Components and Signatures. This section doesn't directly link error handling during the protocol exchanges, the reader is advised to understand Error Handling as defined in section before reading this section. o Section 10 - Retrieving Logos: This section describes how IOTP specific logos can be retrieved.
o Section 11 - Brands: This section provides: an overview of Brand Definitions and Brand Selection which describe how a Consumer can select a Brand from a list provided by the Merchant; as well as some examples of Brand Lists. o Section 12 - IANA Considerations: This section describes how new values for codes used by IOTP are co-ordinated. o Section 13 - Internet Open Trading Protocol Data Type Definition: This section contains the XML Data Type Definitions for IOTP. o Section 14 - Glossary. This describes all the major terminology used by IOTP. o Section 15 - A list of the other documents referenced by the IOTP specification. o Section 16 - The Author's Address o Section 17 - Full Copyright Statement1.7 Intended Readership
Software and hardware developers; development analysts; business and technical planners; industry analysts; merchants; bank and other payment handlers; owners, custodians, and users of payment protocols.1.7.1 Reading Guidelines
This IOTP specification is structured primarily in a sequence targeted at people who want to understand the principles of IOTP. However from practical implementation experience by implementers of earlier of versions of the protocol new readers who plan to implement IOTP may prefer to read the document in a different sequence as described below. Review the transport independent parts of the specification. This covers: o Section 14 - Glossary o Section 1 - Background o Section 2 - Introduction o Section 3 - Protocol Structure o Section 4 - IOTP Error Handling
o Section 5 - Security Considerations o Section 9 - Internet Open Trading Protocol Transactions o Section 11 - Brands o Section 12 - IANA Considerations o Section 10 - Retrieving Logos Review the detailed XML definitions: o Section 8 - Trading Blocks o Section 7 - Trading Components o Section 6 - Digital Signatures and IOTP2. Introduction
The Internet Open Trading Protocols (IOTP) define a number of different types of IOTP Transactions: o Purchase. This supports a purchase involving an offer, a payment and optionally a delivery o Refund. This supports the refund of a payment as a result of, typically, an earlier purchase o Value Exchange. This involves two payments which result in the exchange of value from one combination of currency and payment method to another o Authentication. This supports one organisation or individual to check that another organisation or individual are who they appear to be. o Withdrawal. This supports the withdrawal of electronic cash from a financial institution o Deposit. This supports the deposit of electronic cash at a financial institution o Inquiry. This supports inquiries on the status of an IOTP transaction which is either in progress or is complete
o Ping. This supports a simple query which enables one IOTP aware
application to determine whether another IOTP application running
elsewhere is working or not.
These IOTP Transactions are "Baseline" transactions since they have
been identified as a minimum useful set of transactions. Later
versions of IOTP may include additional types of transactions.
Each of the IOTP Transactions above involve:
o a number of organisations playing a Trading Role, and
o a set of Trading Exchanges. Each Trading Exchange involves the
exchange of data, between Trading Roles, in the form of a set of
Trading Components.
Trading Roles, Trading Exchanges and Trading Components are described
below.
2.1 Trading Roles
The Trading Roles identify the different parts which organisations can take in a trade. The five Trading Roles used within IOTP are illustrated in the diagram below. *+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+* Merchant Customer Care Provider resolves ---------- ---------------------------------------------->| Merchant | | Consumer disputes and problems |Cust.Care.| | | Provider | | ---------- | Payment Handler accepts or makes ---------- | ------------------------------------------>| Payment | | | Payment for Merchant | Handler | | | ---------- v v ---------- Consumer makes purchases or obtains ---------- | Consumer |<--------------------------------------->| Merchant | ---------- refund from Merchant ---------- ^ | Delivery Handler supplies goods or ---------- |---------------------------------------------->|Deliverer | services for Merchant | Handler | ---------- *-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-* Figure 1 IOTP Trading Roles
The roles are:
o Consumer. The person or organisation which is to receive and pay
for the goods or services
o Merchant. The person or organisation from whom the purchase is
being made and who is legally responsible for providing the goods
or services and receives the benefit of the payment made
o Payment Handler. The entity that physically receives the payment
from the Consumer on behalf of the Merchant
o Delivery Handler. The entity that physically delivers the goods or
services to the Consumer on behalf of the Merchant.
o Merchant Customer Care Provider. The entity that is involved with
customer dispute negotiation and resolution on behalf of the
Merchant
Roles may be carried out by the same organisation or different
organisations. For example:
o in the simplest case one physical organisation (e.g., a merchant)
could handle the purchase, accept the payment, deliver the goods
and provide merchant customer care
o at the other extreme, a merchant could handle the purchase but
instruct the consumer to pay a bank or financial institution,
request that delivery be made by an overnight courier firm and to
contact an organisation which provides 24x7 service if problems
arise.
Note that in this specification, unless stated to the contrary, when
the words Consumer, Merchant, Payment Handler, Delivery Handler or
Customer Care Provider are used, they refer to the Trading Role
rather than an actual organisation.
An individual organisation may take multiple roles. For example a
company which is selling goods and services on the Internet could
take the role of Merchant when selling goods or services and the role
of Consumer when the company is buying goods or services itself.
As roles occur in different places there is a need for the
organisations involved in the trade to exchange data, i.e. to carry
out Trading Exchanges, so that the trade can be completed.
2.2 Trading Exchanges
The Internet Open Trading Protocols identify four Trading Exchanges which involve the exchange of data between the Trading Roles. The Trading Exchanges are: o Offer. The Offer Exchange results in the Merchant providing the Consumer with the reason why the trade is taking place. It is called an Offer since the Consumer must accept the Offer if a trade is to continue o Payment. The Payment Exchange results in a payment of some kind between the Consumer and the Payment Handler. This may occur in either direction o Delivery. The Delivery Exchange transmits either the on-line goods, or delivery information about physical goods from the Delivery Handler to the Consumer, and o Authentication. The Authentication Exchange can be used by any Trading Role to authenticate another Trading Role to check that they are who they appear to be. IOTP Transactions are composed of various combinations of these Trading Exchanges. For example, an IOTP Purchase transaction includes Offer, Payment, and Delivery Trading Exchanges. As another example, an IOTP Value Exchange transaction is composed of an Offer Trading Exchange and two Payment Trading Exchanges. Trading Exchanges consist of Trading Components that are transmitted between the various Trading Roles. Where possible, the number of round-trip delays in an IOTP Transaction is minimised by packing the Components from several Trading Exchanges into combination IOTP Messages. For example, the IOTP Purchase transaction combines a Delivery Organisation Component with an Offer Response Component in order to avoid an extra Consumer request and response. Each of the IOTP Trading Exchanges is described in more detail below. For clarity of description, these describe the Trading Exchanges as though they were standalone operations. For performance reasons, the Trading Exchanges are intermingled in the actual IOTP Transaction definitions.
2.2.1 Offer Exchange
The goal of the Offer Exchange is for the Merchant to provide the Consumer with information about the trade so that the Consumer can decide whether to continue with the trade. This is illustrated in the figure below. *+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+* Consumer | Merchant STEP | | 1. Consumer decides to trade and sends information about the transaction (requests an offer) to the Merchant e.g., using HTML. C --> M Data: Information on what is being purchased (Offer Request) - outside scope of IOTP 2. Merchant checks the information provided by the Consumer, creates an Offer optionally signs it and sends it to the Consumer. C <-- M OFFER RESPONSE. Components: Status; Organisation(s) (Consumer, DelivTo, Merchant, Payment Handler, Customer Care); Order; Payment; Delivery; TradingRoleData (optional) Offer Response Signature (optional) that signs other components 3. Consumer checks the information from the Merchant and decides whether to continue. *-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-* Figure 2 Offer Exchange An Offer Exchange uses the following Trading Components that are passed between the Consumer and the Merchant: o the Status component is used to indicate to other parties that a valid Offer Response has been generated o the Organisation Component contains information which describes the Organisations which are taking a role in the trade: - the consumer provides information, about who the consumer is and, if goods or services are being delivered, where the goods or services are to be delivered to
- the merchant augments this information by providing information
about the merchant, the Payment Handler, the customer care
provider and, if goods or services are being delivered, the
Delivery Handler
o the Order Component contains descriptions of the goods or services
which will result from the trade if the consumer agrees to the
offer. This information is sent by the Merchant to the consumer
who should verify it
o the Payment Component generated by the Merchant, contains details
of how much to pay, the currency and the payment direction, for
example the consumer could be asking for a refund. Note that there
may be more than one payment in a trade
o the Delivery Component, also generated by the Merchant, is used if
goods or services are being delivered. This contains information
about how delivery will occur, for example by post or using e-mail
o the Trading Role Data component contains data the Merchant wants
to forward to another Trading Role such as a Payment Handler or
Delivery Handler
o the "Offer Response" Signature Component, if present, digitally
signs all of the above components to ensure their integrity.
The exact content of the information provided by the Merchant to the
Consumer will vary depending on the type of IOTP Transaction. For
example:
o low value purchases may not need a signature
o the amount to be paid may vary depending on the payment brand and
payment protocol used
o some offers may not involve the delivery of any goods
o a value exchange will involve two payments
o a merchant may not offer customer care.
Information provided by the consumer to the merchant is provided
using a variety of methods, for example, it could be provided:
o using [HTML] pages as part of the "shopping experience" of the
consumer.
o Using the Open Profiling Standard [OPS] which has recently been proposed, o in the form of Organisation Components associated with an authentication of a Consumer by a Merchant o as Order Components in a later version of IOTP.2.2.2 Payment Exchange
The goal of the Payment Exchange is for a payment to be made from the Consumer to a Payment Handler or vice versa using a payment brand and payment protocol selected by the Consumer. A secondary goal is to optionally provide the Consumer with a digitally signed Payment Receipt which can be used to link the payment to the reason for the payment as described in the Offer Exchange. Payment Exchanges can work in a variety of ways. The most general case where the trade is dependent on the payment brand and protocol used is illustrated in the diagram below. Simpler payment exchanges are possible. *+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+* Consumer Pay Handler | Merchant | STEP | | | 1. Consumer decides to trade and sends information about the transaction (requests an offer) to the Merchant e.g., using HTML. C --> M Information on what is being paid for (outside scope of IOTP 2. Merchant decides which payment brand, payment protocols and currencies/amounts to offer, places then in a Brand List Component and sends them to the Consumer C <-- M Components: Brand List 3. Consumer selects the payment brand, protocol and currency/amount to use, creates a Brand Selection component and sends it to the Merchant C --> M Component: Brand List Selection
4. Merchant checks Brand Selection, creates a Payment
Amount information, optionally signs it to
authorise payment and sends it to the Consumer
C <-- M Component: Payment; Organisation(s) (Merchant and
Payment Handler); Optional Offer Response Signature
that signs other components
5. Consumer checks the Payment Amount information and
if OK requests that the payment starts by sending
information to the Payment Handler
C --------> P PAYMENT REQUEST. Components: Status, Payment;
Organisations (Merchant and Payment Handler);
Trading Role Data (optional); Optional Offer
Response Signature that signs other components;
Pay Scheme Data
6. Payment Handler checks information including
optional signature and if OK starts exchanging Pay
Scheme Data components for selected payment brand
and payment protocol
C <-------> P PAYMENT EXCHANGE. Component: Pay Scheme Data
7. Eventually payment protocol messages finish so
Payment Handler sends Pay Receipt and optional
signature to the Consumer as proof of payment
C <-------> P PAYMENT RESPONSE. Components: Status, Pay Receipt;
Payment Note; Trading Role Data (optional);
Optional Offer Response Signature; Optional
Payment Receipt Signature that binds the payment
to the Offer
8. Consumer checks Payment Receipt is OK
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
Figure 3 Payment Exchange
A Payment Exchange uses the following Trading Components that are
passed between the Consumer, the Merchant and the Payment Handler:
o The Brand List Component contains a list of payment brands (for
example, MasterCard, Visa, Mondex, GeldKarte), payment protocols
(for example SET Version 1.0, Secure Channel Credit Debit (SCCD -
the name used for a credit or debit card payment where
unauthorised access to account information is prevented through
use of secure channel transport mechanisms such as SSL/TLS) as
well as currencies/amounts that apply. The Merchant sends the
Brand List to the Consumer. The consumer compares the payment
brands, protocols and currencies/amounts on offer with those that
the Consumer supports and makes a selection.
o The Brand Selection Component contains the Consumer's selection.
Payment brand, protocol, currency/amount and possibly protocol-
specific information is sent back to the Merchant. This
information may be used to change information in the Offer
Exchange. For example, a merchant could choose to offer a discount
to encourage the use of a store card.
o the Status component is used to indicate to the Payment Handler
that an earlier exchange (e.g., an Offer Exchange) has
successfully completed and by the Payment Handler to indicate the
completion status of the Payment Exchange.
o The Organisation Components are generated by the Merchant. They
contain details of the Merchant and Payment Handler Roles:
- the Merchant role is required so that the Payment Handler can
identify which Merchant initiated the payment. Typically, the
result of the Payment Handler accepting (or making) a payment
on behalf of the Merchant will be a credit or debit transaction
to the Merchant's account held by the Payment Handler. These
transactions are outside the scope of this version of IOTP
- the Payment Handler role is required so that the Payment
Handler can check that it is the correct Payment Handler to be
used for the payment
o The Payment Component contains details of how much to pay, the
currency and the payment direction
o The "Offer Response" Signature Component, if present, digitally
signs all of the above components to ensure their integrity. Note
that the Brand List and Brand Selection Components are not signed
until the payment information is created (step 4 in the diagram)
o the Trading Role Data component contains from other roles (e.g., a
Merchant) that needs to be forwarded to the Payment Handler
o The Payment Scheme Component contains messages from the payment
protocol used in the Trade. For example they could be SET
messages, Mondex messages, GeldKarte Messages or one of the other
payment methods supported by IOTP. The content of the Payment
Scheme Component is defined in the supplements that describe how
IOTP works with various payment protocols.
o The Payment Receipt Component contains a record of the payment.
The content depends upon the payment protocol used.
o The "Payment Receipt" Signature Component provides proof of
payment by digitally signing both the Payment Receipt Component
and the Offer Response Signature. The signature on the offer
digitally signs the Order, Organisation and Delivery Components
contained in the Offer. This signature effectively binds the
payment to the offer.
The example of a Payment Exchange above is the most general case.
Simpler cases are also possible. For example, if the amount paid is
not dependent on the payment brand and protocol selected then the
payment information generated by step 3 can be sent to the Consumer
at the same time as the Brand List Component generated by step 1.
These and other variations are described in the Baseline Purchase
IOTP Transaction (see section 9.1.8).
2.2.3 Delivery Exchange
The goal of the Delivery Exchange is to cause purchased goods to be
delivered to the consumer either online or via physical delivery. A
second goal is to provide a "delivery note" to the consumer,
providing details about the delivery, such as shipping tracking
number. The result of the delivery may also be signed so that it can
be used for customer care in the case of problems with physical
delivery. The message flow is illustrated in the diagram below.
*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*
CONSUMER DELIVERY
| HANDLER
| Merchant |
STEP | | |
1. Consumer decides to trade and sends information
about what to deliver and who is to take delivery,
to the Merchant e.g., using HTML.
C --> M Information on what is being delivered (outside
scope of IOTP)
2. Merchant checks the information provided by the
Consumer, adds information about how the delivery
will occur, information about the Organisations
involved in the delivery and optionally sings it
and sends it to the Consumer
C <-- M Components: Delivery; Organisations (Delivery
Handler, Deliver To); Order, Optional Offer
Response Signature
3. Consumer checks delivery information is OK,
obtains authorisation for the delivery, for
example by making a payment, and sends the
delivery information to the Delivery Handler
C --------> D DELIVERY REQUEST. Components: Status; Delivery,
Organisations: (Merchant, Delivery Handler,
DelivTo); Order, Trading Role Data (optional);
Optional Offer Response Signature, Optional
Payment Receipt Signature (from Payment Exchange)
4. Delivery Handler checks information and
authorisation. Starts or schedules delivery and
creates and then sends a delivery not tot the
Consumer which can optionally be signed.
C <-------- D DELIVERY RESPONSE. Components: Status; Delivery
Note, Trading Role Data (optional); Optional
Delivery Response Signature
5. Consumer checks delivery note is OK and accepts or
waits for delivery as described in the the Delivery
Note.
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
Figure 4 Delivery Exchange
A Delivery Exchange uses the following Trading Components that are
passed between the Consumer, the Merchant and the Delivery Handler:
o the Status component is used to indicate to the Delivery Handler
that an earlier exchange (e.g., an Offer Exchange or Payment
Exchange) has successfully completed and by the Delivery Handler
to indicate the completion status of the Delivery Exchange.
o The Organisation Component(s) contain details of the Deliver To,
Delivery Handler and Merchant Roles:
- the Deliver To role indicates where the goods or services are
to be delivered to
- the Delivery Handler role is required so that the Delivery
Handler can check that she is the correct Delivery Handler to
do the delivery
- the Merchant role is required so that the Delivery Handler can
identify which Merchant initiated the delivery
o The Order Component, contains information about the goods or
services to be delivered
o The Delivery Component contains information about how delivery
will occur, for example by post or using e-mail.
o The "Offer Response" Signature Component, if present, digitally
signs all of the above components to ensure their integrity.
o The "Payment Receipt" Signature Component provides proof of
payment by digitally signing the Payment Receipt Component and the
Offer Signature. This is used by the Delivery Handler to check
that delivery is authorised
o The Delivery Note Component contains customer care information
related to a physical delivery, or alternatively the actual
"electronic goods". The Consumer's software does not interpret
information about a physical delivery but should have the ability
to display the information, both at the time of the delivery and
later if the Consumer selects the Trade to which this delivery
relates from a transaction list
o The "Delivery Response" Signature Component, if present, provides
proof of the results of the Delivery by digitally signing the
Delivery Note and any Offer Response or Payment Response
signatures that the Delivery Handler received.
2.2.4 Authentication Exchange
The goal of the Authentication Exchange is to allow one Organisation,
for example a financial institution, to be able to check that another
Organisation, for example a consumer, is who they appear to be.
An Authentication Exchange involves:
o an Authenticator - the Organisation which is requesting the
authentication, and
o an Authenticatee - the Organisation being authenticated.
This is illustrated in the diagram below.
+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*
Organisation 1
(Authenticatee)
| Organisation 2
| (Authenticator)
STEP | |
1. First Organisation, e.g., a Consumer, takes an action (for
example by pressing a button on an HTML page) which
requires that the Organisation is authenticated
1 --> 2 Need for Authentication (outside scope of IOTP)
2. The second Organisation generates an Authentication
Request - including challenge data, and a list of the
algorithms that may be used for the authentication -
and/or a request for the Organisation information then
sends it to the first Organisation
1 <-- 2 AUTHENTICATION REQUEST. Components: Authentication
Request, Trading Role Information Request
3. The first Organisation optionally checks any signature
associated with the Authentication Request then uses the
specified authentication algorithm to generate an
Authentication Response which is sent back to the second
Organisation together with details of any Organisation
information requested
1 --> 2 AUTHENTICATION RESPONSE. Component: Authentication
Response, Organisation(s)
4. The Authentication Response is checked against the
challenge data to check that the first Organisation is
who they appear to be and the result recorded in a Status
Component which is then sent back to the first
Organisation.
1 <-- 2 AUTHENTICATION STATUS. Component: Status
5. The first Organisation then optionally checks the results
indicated by the Status and any associated signature and
takes the appropriate action or stops.
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
Figure 5 Authentication Exchange
An Authentication Exchange uses the following Trading Components that
are passed between the two Organisations:
o the Authentication Request Component that requests an
Authentication and indicates the authentication algorithm and
optional challenge data to be used.
o A Trading Role Information Request Component that requests
information about an Organisation, for example a ship to address.
o The Authentication Response Component which contains the challenge
response generated by the recipient of the Authentication Request
Component.
o Organisation Components that contain the result of the Trading
Role Information Request
o the Status Component which contains the results of the second
party's verification of the Authentication Response.
(page 28 continued on part 2)