B2B communication protocols

SFTP: secure file transfer over SSH

SFTP is the most common way to exchange files securely with partners, banks and service providers. It runs over SSH, which encrypts the whole session. ECOM runs SFTP as a server for partners to connect to, and as a client that connects to partners' servers.

Full name
SSH File Transfer Protocol
Runs over
SSH (version 2), usually port 22
Authentication
SSH keys, passwords or both
Modes
Server (partners connect) and client
Where SFTP fitsA hub diagram: banks, retailers, logistics providers and service providers exchange files over SSH with the ECOM B2B gateway, which acts as SFTP server and client with optional PGP, and passes mapped data to your systems.Where SFTP fitsPartners, the ECOM gateway and your systemsSFTP PARTNERSBanksRetailersLogistics providersService providersYOUR SYSTEMSERPWarehouse (WMS)FinanceOther partnersECOM B2B gatewaySFTPSFTP serverSFTP clientOptional PGP
Where SFTP fitsA hub diagram: banks, retailers, logistics providers and service providers exchange files over SSH with the ECOM B2B gateway, which acts as SFTP server and client with optional PGP, and passes mapped data to your systems.Where SFTP fitsPartners, the ECOM gateway and your systemsSFTP PARTNERSBanksRetailersLogistics providersService providersECOM B2B gatewaySFTPSFTP serverSFTP clientOptional PGPYOUR SYSTEMSERPWarehouse (WMS)FinanceOther partners

Partners connect to ECOM's SFTP server, or ECOM connects to theirs. Either way, files reach your systems mapped and logged.

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Overview

What SFTP is

SFTP transfers files over an SSH connection. Everything in the session, including the login, commands and file contents, is encrypted. Despite the name, it is not FTP with security added; it is a separate protocol from FTPS.

Partners authenticate with a public key, a password or both. The client checks the server's host key the first time it connects and every time after, which protects against connecting to an impostor server.

Where businesses use it

  • Banks and payments

    Payment files, statements and remittance exchanged with banks.

  • Retail and logistics

    EDI, inventory and catalog files with partners that prefer file exchange.

  • Service providers

    Payroll, benefits, marketplaces and data providers.

How it works

How an SFTP transfer works

The client opens an SSH connection, checks the server's host key, agrees encryption algorithms and authenticates. It then lists folders, uploads files, downloads files and renames or deletes them, all inside the encrypted session.

Partners usually agree a folder structure, such as inbound and outbound, and naming rules. Files are often uploaded under a temporary name and renamed when complete, so the receiver never picks up half a file.

An SFTP sessionA sequence diagram: the client connects, verifies the server host key, authenticates with an SSH key, uploads a file under a temporary name, renames it when complete, and downloads a reply file.An SFTP sessionConnect, verify, authenticate, transferSFTP clientSFTP serverConnect (SSH, port 22)Host key: client verifies itAuthenticate with SSH keyUpload orders.tmpRename to orders.ediDownload replies
An SFTP sessionA sequence diagram: the client connects, verifies the server host key, authenticates with an SSH key, uploads a file under a temporary name, renames it when complete, and downloads a reply file.An SFTP sessionConnect, verify, authenticate, transferSFTP clientSFTP serverConnect (SSH, port 22)Host key: client verifies itAuthenticate with SSH keyUpload orders.tmpRename to orders.ediDownload replies

The host key check and the key-based login happen before any file moves. Renaming after upload prevents half-written files from being processed.

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In depth

SFTP security and operations

  • Key authentication

    Public key authentication avoids shared passwords. Partners send their public key; private keys never leave their owner.

  • Host key verification

    Clients record the server's host key and refuse a server whose key changes unexpectedly.

  • Algorithms

    Modern key exchange, cipher and MAC algorithms are used; old ones are disabled where partners allow.

  • Files at rest

    SSH protects the transfer, not the file afterwards. Where files must stay protected, they are also encrypted with PGP.

  • Server mode

    ECOM hosts accounts and folders for partners, with IP allow lists and per-partner access.

  • Client mode

    ECOM connects to partners' servers on a schedule or when files are ready, with retries.

In practice

Example: daily bank file exchange by SFTP

A company sends payment files to its bank and collects statements each morning.

Example: daily bank file exchange by SFTPFive steps: exchange keys and allow IPs, PGP-encrypt the payment file, upload it by SFTP, collect acknowledgments and statements, map them and alert on missing files.Example: daily bank file exchange by SFTPA practical example, step by step1Exchange keysPublic keys andhost keys areexchanged; IPs areallowed.Step 12Encrypt the fileThe payment file isPGP-encrypted forthe bank.Step 23UploadThe gatewayuploads it to thebank's SFTP server.Step 34Collect repliesAcknowledgmentsand statements aredownloaded.Step 45Map and alertStatements aremapped; missingfiles raise alerts.Step 5
Example: daily bank file exchange by SFTPFive steps: exchange keys and allow IPs, PGP-encrypt the payment file, upload it by SFTP, collect acknowledgments and statements, map them and alert on missing files.Example: daily bank fileexchange by SFTPA practical example, step by step1Exchange keysPublic keys and host keys areexchanged; IPs are allowed.Step 12Encrypt the fileThe payment file is PGP-encrypted forthe bank.Step 23UploadThe gateway uploads it to the bank'sSFTP server.Step 34Collect repliesAcknowledgments and statements aredownloaded.Step 45Map and alertStatements are mapped; missing filesraise alerts.Step 5

SFTP protects the session; PGP keeps the file protected on the bank's server.

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Connections

How SFTP connects your business

  • Trading partners and banks

    Each partner has its own account or connection settings.

  • Translation and mapping

    Files received are translated; files to send are produced by maps.

  • ERP and finance

    Payments, statements and documents reach your systems.

  • Monitoring

    Every transfer is logged; failures and gaps raise alerts.

ECOM

How ECOM supports SFTP

ECOM supports SFTP with dedicated implementation, mapping, communication and support teams, and with specialists who know the industries your partners work in.

  • Implementation team

    Plans the SFTP setup with you, configures it on the gateway and runs the tests with your partners and systems.

  • Mapping team

    Builds and maintains the maps, code conversions and validation rules between partner data and your applications.

  • Communication team

    Sets up and monitors partner connections, certificates, keys and credentials, and coordinates changes with each partner.

  • Support team

    Watches the flows, investigates failed or missing documents, and works the issue through with you and your partner.

For SFTP in particular

  • SFTP server accounts for partners and SFTP client connections to partners' servers.
  • SSH key and PGP key management, with expiry and rotation tracking.
  • Partner onboarding for SFTP: exchanging connection details, testing in both directions and confirming the go-live date with each partner.
  • Monitoring of every connection, with alerts for failed, missing or unacknowledged transfers.

Frequently asked questions

Is SFTP the same as FTPS?

No. SFTP runs over SSH, usually on port 22. FTPS is FTP with TLS added. Both encrypt the transfer, but they are different protocols and are not interchangeable.

Should we use keys or passwords?

Keys are preferred: there is no shared secret to leak. Some partners require both a key and a password.

Does SFTP encrypt files after they arrive?

No, it protects the transfer. For files that must stay encrypted on the server, PGP encryption is added.

Can ECOM host an SFTP server for our partners?

Yes. ECOM can host accounts and folders for your partners, and also connect to partners' own SFTP servers.

Talk to an EDI/API Expert

Tell us which partners, systems and SFTP requirements you are working with. An ECOM specialist will review them with you and outline the setup, the maps and the tests.