1. CIS-325: Data Communications1 CIS-325 Data Communications Dr. L. G. Williams, Instructor

2. CIS-325: Data Communications2 Chapter Fifteen Doing Business on the Internet

3. CIS-325: Data Communications3 The Internet u 1969 - ARPANET u Packet-switching net u TCP/IP u e-mail, FTP, TELNET u 1982 - Internetworking u 1980 - NSF network u 1990 - NSF and ARPA nets combined u 1995 - Internet goes commercial

4. CIS-325: Data Communications4 Internet Commerce u Major drawback is lack of security u Secure Socket Layer u encrypts all communications u developed by Netscape u Secure HTTP u client and server negotiate variety of security methods as needed

5. CIS-325: Data Communications5 Electronic Payment Systems u Protect credit card number u Ensure receipt by vendor u Non-repudiation u Ability to make micro-payments u Vendor confidence in payment u Note: this is different than EFT

6. CIS-325: Data Communications6 Characteristics u Type of transactions supported u Means of settlement u Operational Characteristics u Privacy and Security u Who takes the risks? u Complications

7. CIS-325: Data Communications7 Secure Electronic Transactions (SET) u Payment protocol, sponsored by VISA and MasterCard u Payment using credit or debit card u Uses public-key encryption u In development since 1996

8. CIS-325: Data Communications8 SET Entities u Cardholder u Vendor u Financial Institution u Certificate Authority u see Fig 15.5, p. 457

9. CIS-325: Data Communications9 SET Goals u Merchant wants to ensure valid payment method u User wants to ensure payment not modified u User wants to ensure card info not compromised u Bank wants to ensure funds available to cover transaction u Table 15.5, p. 460, lists steps of process

10. CIS-325: Data Communications10 Electronic Cash u Independence u Security u Privacy u Off-line payments u Transferability u Divisibility u Especially needed for micro-payments

11. CIS-325: Data Communications11 E-Cash u Easier than ATM u Provides anonymity u Uses cryptographic methods u Must have e-cash acct with bank u User maintains ‘wallet’ on PC u Wallet contains digital-coin tokens u System prevents ‘coins’ from being spent twice

12. CIS-325: Data Communications12 How to use E-Cash u Establish acct with bank u Software resides on your PC u Transfer coins between bank and wallet as needed u Vendor requests payment from your wallet u Say yes or No or make automatic payments u Someone can also send you ‘coins’ u Bank maintains serial numbers of tokens to ensure no duplicate payments