The report of the protected electronic transactions (SET), developed by Visa International and MasterCard, is specially intended for protection of transactions in electronic commerce. Report SET uses digital certificates for identification of each side in electronic transaction, including the buyer, the seller and bank. Protection of the information transferred on the Network, is supplemented with cryptography methods in which are used open keys.

Sellers should have the digital certificate and a special program current from SET for processing of transactions. The customer also should have a digital certificate and the software of an electronic purse. The electronic purse is arranged like a real wallet. In it can be stored the information about several credit or debit cards, and also the digital certificate certifying the owner of cards. The electronic purse simplifies process of fulfillment of electronic purchases; buyers do not need to enter repeatedly the information on a credit card in the next electronic shop any more.

Let’s consider, how transaction of electronic trade in which report SET is used is carried out. When the buyer does the order, software SET of the seller sends the data of the order and the digital certificate of the seller to an electronic purse of the customer, making active thus and the software of an electronic purse. The customer chooses a card, which will use in transaction. Then the credit card and order data is ciphered, using an open key of bank of the seller and is sent to the seller together with the digital certificate of the buyer. The seller then forwards this information to the bank where this payment should be processed. To decipher the message can only the bank. The bank of the seller sends the sum of payment and the digital certificate to bank of the buyer to receive acknowledgement on possibility of processing of transaction. If the specified sum can be written off from the card account, the bank of the buyer sends acknowledgement to bank of the seller. The bank of the seller then sends the permission to fulfillment of the transaction to the seller. In the conclusion, the seller sends the acknowledgement of the transaction to the customer.

In report SET the seller actually has no access to the private information of the client. Number of a credit card of the client is not stored on a server of the seller that reduces risk of swindle.

Though report SET is specially developed for transactions of electronic trade and provides high level of protection while it is not the standard report used for fulfillment of transactions. The problem part consists that report SET demands the special software on the server side, and on the side of the client that leads to additional costs. Besides, similar transactions take away more time, than the transactions using other reports, for example SSL.

SET Secure Electronic Transaction LLC — the organization generated by Visa and MasterCard for support and advancement on the market of report SET.

Example: Microsoft Authenticode

Technology Microsoft Authenticode uses the digital signature. The software signed by the digital signature and certified by the digital certificate of the supplier serves as the proof of that the software does not have danger and has not been changed.

When the client tries to load a file, on the screen there is a dialogue window in which is displayed the digital certificate and a name of the supplier of the digital certificate. Besides, references to the supplier of the digital certificate and the supplier of software product that the client could receive the information on each of them are given before he will load a file. If Microsoft Authenticode will define that the software has been compromised, transaction will be interrupted.

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