Secure Electronic Transactions (SET) is a protocol developed to secure credit card transactions online by authenticating all parties using digital signatures and encryption, ensuring end-to-end security and message integrity.

How Secure Electronic Transactions Work

Secure Electronic Transactions (SET) is a protocol designed to ensure the security and integrity of online credit card transactions. It uses a combination of encryption and digital signatures to authenticate all parties involved and protect the transaction data.

• Customer Initiates Purchase: The customer starts an electronic purchase.

• Digital Certificate Generation: Encrypted digital certificates are created for participants.

• Order and Payment Encryption: Order and payment details are encrypted with separate keys.

• Authentication and Authorization: The cardholder is authenticated, and the bank authorizes payment.

• Transaction Completion: The acquiring bank informs the merchant, finalizing the transaction.

Benefits of Secure Electronic Transactions

Secure Electronic Transactions (SET) offer numerous benefits that enhance the security and integrity of online credit card transactions. By leveraging advanced cryptographic techniques and digital signatures, SET ensures that all parties involved in a transaction are authenticated and that sensitive information remains protected.

• Authentication: Verifies the identities of all parties involved in the transaction.

• Encryption: Protects transaction data from unauthorized access.

• Integrity: Ensures that the transaction data is not altered during transmission.

• Non-repudiation: Prevents any party from denying their involvement in the transaction.

• Confidentiality: Keeps sensitive information, such as credit card details, secure from potential threats.

Comparing SET to SSL Transactions

Comparing SET to SSL transactions reveals key differences in their approach to security and usability.

• Security: SET offers superior security by using digital signatures and dual encryption to protect transaction details, while SSL focuses on encrypting data during transmission to ensure privacy and integrity.

• Usability: SSL is simpler and more widely adopted due to its ease of use and faster transaction speeds, whereas SET's complexity and need for special software limit its practicality.

Implementing Secure Electronic Transactions

Implementing Secure Electronic Transactions (SET) involves a series of steps to ensure the security and integrity of online credit card transactions. By following these steps, organizations can protect sensitive information and authenticate all parties involved.

• Authentication: Verifies the identities of all participants using digital certificates.

• Encryption: Protects transaction data with both symmetric and asymmetric cryptography.

• Digital Signatures: Ensures the integrity and non-repudiation of transaction messages.

• Key Management: Utilizes Public Key Infrastructure (PKI) for secure key distribution.

• Authorization: Confirms that the transaction is approved by the issuing bank.