Instant Payment Notification
Instant Payment Notification (IPN) is a method for online merchants to automatically track purchases and other server-to-server communications in real time. This enables e-commerce systems to store payment transactions, order information and other contracts internally. IPN messages can represent successful and failed payments, transaction status changes, accounting information and many other information depending on the payment gateway.
functionality
When an e-commerce system requests a resource from a payment gateway, such as a new invoice for goods, the request must contain a URL endpoint that represents a script or program to handle feedback. IPN messages are then sent to the merchant's e-commerce system via http POST as the resource is updated by the gateway. The IPN handler usually performs standard actions such as validating the message, updating inventory levels in the e-commerce system, notifying customers of successful or failed payments, etc. Depending on the retailer's business needs and the sophistication of the e-commerce software, some or all of the IPN messages may be processed or ignored.
Server-side scripting languages like PHP and ASP , which most e-commerce systems use, are event-driven and do not differentiate between a user-generated event and a computer-generated event. With this in mind, IPN messages make it easier to coordinate order status changes between the e-commerce system and the payment gateway that processes the order.
See also
- Mobile commerce
- Internet economy
- Electronic invoice
- Electronic money
- Virtual marketplace
- Real-time transfer