1. SET – Secure Electronic Transaction Setting The Stage For Safe Internet Shopping -Jignesh Shah- -Riyaz Malbari-

2. History/Background: - Internet shopping didn’t quite pick up as consumers considered financial transactions over the internet, unsafe - Lacks the one on one transaction feeling. - Visa & MC came up with the idea what we call as SET.

3. Advantages: - Privacy: Uses 1024 bit public key cryptography which renders the intercepted message unreadable ! - Integrity: Hashing & signing ensures message sent is unaltered. - Authentication: Uses digital certificates to ensure the parties are really who they claim to be.

4. How SET Works: Components: Cardholder Merchant Acquirer Gateway Certification Authority

5. Merchant’s Cardholder’s Bank Bank 1. Cardholder initializes purchase 2. Merchant verifies funds 3. Acquirer authorizes purchase & Verifies merchant’s certificate 5. Requests payment 4. Order is confirmed 6. Makes transfers & provides payment to merchant

6. How safe is SET? -Uses 1024–bit cipher keys, making it one of the strongest encryption applications. -If we use 100 computers each processing 10 MIPS, it would take 2.8 x 10 11 years to break just ONE encrypted message !!!! Source: http://www.rsa.com/set/html/howstrong.htmlhttp://www.rsa.com/set/html/howstrong.html

7. SET versus SSL -SET was developed specifically for payment transaction. SSL simply encrypts the communication channel between cardholder & merchant website and its not backed by any financial institution. - Compare 128-bit encryption with that to SET !

8. SET versus SSL: -SET also authenticates each participant as its backed by CA & financial institutions. -SET provides security throughout the entire transaction process. SSL provides security only between cardholder and merchant.

9. Concept of Dual Signature : AliceBob Bank

10. Certificate Issuance: Electronic representation of payment card/brand Must be approved by the Acquirer gateway

11. Payment Processing : Cardholder registeration Merchant registeration Purchase request Payment authorisation Payment capture

19. Drawbacks:  Slow  Expensive  Not portable

20. References:  http://www.setco.org  http://www.wolrath.com/set.html  http://www.MasterCard.com

21. THANK YOU !!!