1. Secure Electronic Transaction Creating Debts Online with Confidence

2. SET Objectives  To encrypt critical information over the internet  To separate the merchant from credit card information  To link payment and order information

3. SET  Alice as the Cardholder  Bob’s Beer Delivery as the Merchant  Visa as the Issuer  Wachovia as the Acquirer/Payment Gateway Starring

4. Dual Signature How Bob can prove Alice paid for Natural Light and not Samuel Adams

5. Dual Signature Creation PI OI || H PIMD HOIMD POMD HDS E kra

6. How Bob Uses the DS  DS  PIMD  OI DS = Ekra[ H( H(PI) || H(OI) ) ] Ekua [ Ekra[ H( H(PI) || H(OI) ) ] ] H( H(PI) || H(OI) ) H( PIMD || H(OI) ) = !

7. = How Wachovia Uses the DS  DS  PI  OIMD DS = Ekra[ H( H(PI) || H(OI) ) ] Ekua [ Ekra[ H( H(PI) || H(OI) ) ] ] H( H(PI) || H(OI) ) ! H( H(PI) || OIMD )

8. Payment Processing  Purchase Request  Alice to Bob’s Beer Delivery Alice to Bob’s Beer Delivery  Payment Authorization  Bob’s Beer Delivery to Wachovia  Wachovia to Visa

9. From Alice To Bob’s Beer Dig Envelope PIMD Order Info Dual Sig + + + + + Alice’s Cert. Used by Bob’s Beer Delivery (Order Related) Sent on by Bob’s Beer Delivery to Wachovia (Money Related) Contains Key To Decrypt Dual Sig (K PUB-Alice )

10. Payment Processing  Purchase Request  Alice to Bob’s Beer Delivery  Payment Authorization  Bob’s Beer Delivery to Wachovia Bob’s Beer Delivery to Wachovia  Wachovia to Visa

11. From Alice To Bob’s Beer Dig Envelope PIMD Order Info Dual Sig + + + + + Alice’s Cert. Used by Bob’s Beer Delivery (Order Related) Sent on by Bob’s Beer Delivery to Wachovia (Money Related) Contains Key To Decrypt Dual Sig (K PUB-Alice )

12. From Alice Through Bob To Wachovia Dig Envelope + Money Info Encrypted Using Symmetric Key Symmetric Key Encrypted Using Wachovia’s Public Key

13. Bob’s Beer To Wachovia Payment Info Dual Sig OIMD E Temporary Symmetric Key Generated by Alice KSKS

14. Digital Envelope E KSKS Dig Envelope K PUB-Wachovia

15. Obtaining The Payment Info D Payment Info Dual Sig OIMD Dig Envelope KSKS D K PRI-Wachovia KSKS

16. SET Interoperability  Software development on SET protocol –Brokat, Entrust, Globeset, GTE, IBM, TrinTech, Verisign  SET costs –Software development –Hardware and runtime increases with high volume of transactions

17. Conclusion  Non-repudiation  Inherited credit card risks  Not widely used