Background

The key characteristic of the IPP is an Internet database that accumulates all practical information about a disbursement transaction, starting from the initial purchase order or obligation through any post-disbursement claims or adjudication. This database is intended to rectify the problem of data degradation typically encountered in both traditional and Internet-based payment systems. Data is lost or altered as it is pushed from system to system and party to party, referred to as "silos" of data. To find out about a payment, a vendor must call multiple people and access multiple systems to get a complete picture, increasing time and thus costs to all involved.

The IPP allows as much data appreciation as possible in one Internet repository which is then accessible to all parties in a payment transaction. A user interface to the IPP allows parties to execute different roles--authorizing, certifying, or stopping payments--as well as to view the status of transactions and download accounting information. Transactions are settled through the Automated Clearing House (ACH) network.