Secure Electronic Transaction (SET)

What is Secure Electronic Transaction (SET)?

Secure Electronic Transaction (SET)

Secure Electronic Transaction (SET) is an early standard protocol that was developed to ensure the security of credit card transactions conducted over insecure networks, particularly the Internet. In today's digital age, where online shopping and electronic payments have become increasingly prevalent, it is crucial to have robust security measures in place to protect sensitive financial information.

The primary objective of SET is to establish a secure and trustworthy environment for electronic transactions. It achieves this by employing various encryption techniques and authentication mechanisms to safeguard the confidentiality, integrity, and authenticity of the data exchanged during a credit card transaction.

One of the key features of SET is its ability to provide end-to-end encryption. This means that the credit card information, including the card number, expiration date, and other relevant details, is encrypted at the point of entry and remains encrypted throughout the entire transaction process. This ensures that even if the data is intercepted by unauthorized individuals, it would be virtually impossible for them to decipher and misuse the information.

To further enhance security, SET utilizes digital certificates. These certificates act as electronic credentials that verify the identity of the parties involved in the transaction. Each participant, including the customer, merchant, and payment gateway, possesses a unique digital certificate issued by a trusted third-party certification authority. These certificates serve as a digital signature, ensuring that the transaction is conducted between legitimate entities and preventing any tampering or impersonation.

Moreover, SET incorporates a dual-key encryption system, also known as public-key cryptography. This system utilizes two different keys: a public key and a private key. The public key is freely available and is used to encrypt the data, while the private key, known only to the intended recipient, is used to decrypt the data. This asymmetric encryption method adds an extra layer of security, as even if the public key is intercepted, it cannot be used to decrypt the encrypted data without the corresponding private key.

In addition to encryption and digital certificates, SET also includes mechanisms for transaction integrity and non-repudiation. Transaction integrity ensures that the data exchanged during the transaction remains intact and unaltered. Non-repudiation, on the other hand, prevents any party from denying their involvement in the transaction. These features provide assurance to both the customer and the merchant that the transaction has been conducted securely and that the information exchanged is reliable.

While SET was an important step towards securing electronic transactions, it has been largely replaced by newer and more advanced protocols such as Secure Sockets Layer (SSL) and Transport Layer Security (TLS). These protocols offer enhanced security features and have become the industry standard for securing online transactions. However, the fundamental concepts and principles introduced by SET continue to influence and shape the development of secure electronic transactions today.

In conclusion, Secure Electronic Transaction (SET) was an early standard protocol designed to secure credit card transactions over insecure networks, particularly the Internet. It employed encryption, digital certificates, and other security mechanisms to ensure the confidentiality, integrity, and authenticity of the data exchanged during a transaction. While SET has been superseded by newer protocols, its contributions to the field of secure electronic transactions remain significant.