Secure Electronic Transaction Protocol: A Secure Online Payment System

The Secure Electronic Transaction (SET) Protocol is a secure online payment system designed to protect sensitive information during transactions.

It was developed by a consortium of companies, including IBM, Microsoft, and Netscape, in 1995.

SET uses public-key cryptography to ensure the authenticity and integrity of transactions.

Here's how it works: when you make a purchase online, your browser sends a request to the merchant's server, which then sends a response back to your browser, containing a digital certificate.

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Secure electronic transactions are made possible by the Secure Electronic Transaction (SET) protocol, an open standard designed to facilitate secure credit card transactions on the Internet. SET operates in both real-time and store-and-forward environments, allowing consumers, merchants, and banking software companies to develop software independently.

SET requires four key qualities to ensure secure transactions: confidentiality, integrity, authenticity, and non-repudiability. These qualities prevent others from eavesdropping on an exchange, ensure messages are not altered, verify the identity of parties involved, and prevent any party from denying the exchange took place.

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Here are the four key qualities of SET in a concise list:

SET is a method for providing secure credit card transactions on the Internet. It's an open standard that allows consumers, merchants, and banking software companies to independently develop software for their respective clienteles and have them interoperate successfully.

SET is designed to operate in real-time, as on the World Wide Web, and in a store-and-forward environment, such as e-mail. This means you can make secure transactions whether you're browsing online or sending emails.

For secure transactions to work, SET must possess four key qualities: confidentiality, integrity, authenticity, and non-repudiability. These qualities ensure that your transactions are private, accurate, and trustworthy.

Here are the four key qualities of SET in a nutshell:

SET uses a multi-step process to ensure secure transactions. It starts with an initial handshake between the consumer and merchant, where they exchange certificates and establish a transaction ID number.

SET was developed by the SET Consortium, established in 1996 by Visa and Mastercard in cooperation with other major players in the industry.

The consortium's goal was to combine the card associations' similar but incompatible protocols into a single standard. This was a major undertaking, involving some of the biggest names in tech.

SET allowed parties to identify themselves to each other and exchange information securely, using X.509 certificates with several extensions. This was a significant advancement in online security.

The implementation of SET was either expensive or cumbersome for the primary stakeholders, which likely contributed to its limited adoption. This was a major setback for the consortium's ambitious plans.

A SET system includes the following participants:

Secure electronic transactions have a significant impact on the security posture of organizations and individuals. This is because they involve sensitive information, such as financial data, that can be compromised if not handled properly.

The practical implications of secure electronic transactions are far-reaching. They can affect the way organizations handle customer data, protect against cyber threats, and maintain trust with their customers.

In the event of a data breach, the consequences can be severe. This highlights the importance of secure electronic transactions in preventing unauthorized access to sensitive information.

Secure electronic transactions also have a significant impact on the bottom line of organizations. A single data breach can result in significant financial losses, damaged reputation, and loss of customer trust.

Organizations must prioritize secure electronic transactions to protect their customers and maintain a strong security posture. This includes implementing robust security measures, such as encryption and access controls, to prevent unauthorized access to sensitive information.

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The security features of the Secure Electronic Transaction (SET) protocol are designed to provide a secure and trustworthy environment for electronic transactions. SET architecture comprises a set of features that ensure the confidentiality and integrity of information.

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To meet business requirements, SET incorporates confidentiality of information, integrity of data, cardholder account authentication, and merchant authentication. These features are essential for secure electronic transactions.

Regular security audits and assessments facilitate the identification and remediation of potential weaknesses in electronic transaction processes. By proactively addressing security vulnerabilities, organizations can bolster their cybersecurity posture.

In SET, authentication and nonrepudiation are achieved through digital signatures. This ensures that parties in the transaction cannot deny that the transaction occurred.

A dual signature is an important innovation introduced in SET. It links two messages intended for different recipients, providing extra protection for the customer's privacy.

The following features are key to the security of SET:

Digital signatures also ensure that the transaction's authenticity can be verified by comparing the transaction message and message digest with the sender's public key.

The security architecture of Secure Electronic Transaction (SET) is designed to support Public Key Infrastructure (PKI). It comprises multiple components that work together to ensure secure transactions.

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SET uses both symmetric and asymmetric cryptography to secure card transactions and protect purchasing information. Symmetric DES encryption is used for the remainder of the card transaction, while asymmetric PKI is used for key management and to distribute public keys between participants.

Here are the key components of the SET security architecture:

These components work together to provide a secure foundation for electronic transactions.

Secure Electronic Transactions (SET) architecture is designed to support Public Key Infrastructure (PKI). This architecture is pivotal in ensuring the secure exchange of information during electronic transactions.

SET uses a combination of symmetric and asymmetric cryptography to secure card transactions and protect purchasing information. This includes the use of Data Encryption Standard (DES) and PKI.

PKI is used for key management, reliably distributing public keys between participants. This ensures secure communication between parties involved in the transaction.

The SET architecture also uses long keys for both symmetric and asymmetric encryption. This provides an additional layer of security for sensitive financial data.

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Here are the key components of the SET architecture:

Regular security audits and assessments are crucial in identifying and remediating potential weaknesses in electronic transaction processes. This includes conducting routine security audits to bolster cybersecurity posture and instill confidence in electronic transaction workflows.

In a secure electronic transaction, several key participants are involved in the process.

The cardholder, or customer, is the authorized holder of the payment card, which can be either a Visa or Mastercard.

The e-commerce merchant is the seller, responsible for facilitating the transaction.

A card issuer is a financial organization, such as a bank, that issues the payment card.

The acquirer is another financial organization that processes payment authorization and facilitates electronic funds transfer to the merchant's account.

The payment gateway is an interface between card payment networks and secure electronic transactions.

A Certificate Authority is a trusted organization that provides public key digital certificates.

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Here's a breakdown of the participants involved in a secure electronic transaction: