Transcript
CREDIT CARDS & SET
BY ABIRAMI.U
CONTENTS
y y y y y y y y y y
Credit Cards How Does It work Interest Charges Benefits to the Customers Demerits to the Customers Benefits to the Merchants Parties Involved Transaction Steps Types of Credit Cards SET
CREDIT CARDS
A Credit card is a small plastic card.
It allows the holder to buy goods and services.
CREDIT CARDS
Credit cards allow the consumers to
'revolve' their balance, at the cost of having interest charged.
Its size is defined as 85.60 × 53.98 mm by ISO.
HOW DOES IT WORK
Credit cards are issued after an account has been
approved by the credit provider.
Then the cardholders can use it to make purchases at
merchants accepting that card.
HOW DOES IT WORK
y When a purchase is made, the credit card user agrees
to pay the card issuer. The cardholder signs a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN).
INTEREST CHARGES
y Credit card issuers usually do not pay interest charges
if the balance is paid in full each month.
y But typically will charge full interest on the entire
outstanding balance from the date of each purchase if the total balance is not paid.
BENEFITS TO THE CUSTOMERS
Convenience
Security
DEMERITS TO THE CUSTOMERS
y High Interest. y Inflated Pricing for All Consumers.
BENEFITS TO THE MERCHANTS
Secure transactions
Discourages theft by
others
TYPES OF CREDIT CARDS
y Secured Credit Cards y Pre-Paid Credit Cards
CREDIT CARD PROTOCALLS
y SET [Secure Electronic Transfer] y SSL [Secure Socket Layer] y TLS [Transport Level Security] y STT [Secure Transaction Technology] y SEPP [Secure Encryption Payment Proto call]
SECURE ELECTRONIC TRANSACTIONS
The credit cards on internet requires,
Authentication of customers and merchants Confidential transactions
SET
y Developed by Visa, Master cards y Designed to protect credit card transactions with
confidentiality, trust and privacy
PARTICIPANTS IN SET
Card Holder Merchant Bank Issuer Internet Acquirer Payment Network
SET REQUIREMENTS
y Confidentiality y Integrity y Authentication y Security by creating protocalls y Inter-operablity
SET TRANSACTIONS
1. 2. 3. 4. 5. 6. 7. 8.
Customer places the order SET sends order and payment information to the merchant Merchant forwards the payment information to the bank. Bank checks for authorization of payment If valid customer then the bank authorizes the payment Merchant completes the order Merchant receives payment from the bank Bank send the bill details to the card holder
MERITS OF SET
y Confidentiality y Integrity y Authorization of customer and merchant by digital
signatures y Privacy by separation of order and payment information using dual signatures
