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What is the difference between the Honeywell 5883H and the Honeywell 5881 models?

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The difference between the 5883H Transceiver and the 5881 model of receivers is that it is capable of doing 2-way communication with 2-way enabled devices. The 5883H contains a Honeywell TM transmitter module.

2-way devices can not only receive information from the panel, but can also talk back to the panel to deliver information. An example of a 2-way device would be the 5804BDV that will read back the arming status when the system is armed to let you know it armed successfully.