Cost Factors For Online Payments

Published Date: 02 Nov 2017

INTRODUCTION

Today’s e commerce business is a well developed and providing good quality facilities to users. And helps customer to fulfill almost all their requirements regarding the shopping .as it grows rapidly if faces some problem of security and privacy a lot. All users want to protect the personal information from illegal use. But how to protect it is a big problem and solution is most needed .we is facing some problems as bellow

Hacking of data

Personal information is not safe

Virus Attack on data

Unauthorized transactions

Security is a major issue in e-business and every body wants a farm solution on it .In this paper we want to discuss on the same problem and about safe and secure transactions by using protocols like SET and IKP

In ecommerce the payment can be done on internet through network and the security may be lost due to interaction of data with third-party software’s .And the most conman way of transferring data from remote place is credit cards. Use of credit cards requires much personal information to be inserted on your computer through any software and it may get misused by any unwanted users .for network security different protocols are use like bellow Transport Layer Security (TLS) [TLS], Secure Sockets Layer (SSL) [SSL] Transport Layer Security (TLS)

Secure Electronic Transaction (SET) is specially designed to carry out the transaction related to payment and the information regarding it .with the SET protocol we can securely use the internet for payment transaction, by using digital certificates it can verify and enable both the trading partners to use credit cards for purchasing and handles the personal information by encryption while traveling over internet. By using computer software customer starts his or her transaction also called as electronic wallet it contains a digital certificate used for customer authentication and on the other hand a merchants certificate that for same purpose to the customer (information of merchant ).[1]

2. OVERVIEW OF SET PROTOCOL

VISA card designed a protocol called SET for ensure confidentiality of data and data integrity on internet .By using the protocol authentication of both the users merchant and customer can be done very safely and securely .following entities are used by SET protocol for doing hi]s work Merchant bank ,Issuer, customer and merchant .The customer and merchant can start their transaction only when they receive the digital certificate .SET provides a communication channel for every one who is involved in the transaction by maintaining privacy and information is provided to them who are involved in transaction process at that time .This can be done with the help of X.509v3 digital certificate. Both customer and merchant must fill one form to provide their information before transaction is being started; it is also called as registration process. By following some easy stapes the transaction is completed as follows.

Purchasing can be done Customer by visiting the website and decides what is to be purchase

Customer sends order and information regarding payment with purchase order and card information

At this stage merchant send this information which includes the payment details to the bank

Bank checks the information for payment authorization

Issuer sends authorization to merchants bank

Now the information is send to merchant which is authorized by the bank

Then the order is completed my merchant and sends confirmation to customer

The merchant will collect the amount from the customers bank

Customer gets the notice regarding the payment is debited from his account [2]

SET protocol specialized for secure transaction by following the above steps it can authenticate the information regarding the transaction as well as both trading partners

Cost Factors for On-line Payments

While working with online shopping or e commerce some major factors to be consider which really effects on the use of e commerce and the bond of trust between customer and merchant

1. Refunding customer for bad sales.

2. Credit risk (buyer does not pay).

3 Dispute resolution costs.

4 Record keeping costs (for legal reasons).

5 Advertisement and promotion costs (for brand)

6 Operation costs of billing system, with high availability.

In above list of various cost effective factors of online payment. We want to know the rules and some solutions provided on these issues. SET Uses cryptography called public key cryptography for encryption and decryption .it also use digital certificate and digital signature for verification of customer and the different parties. Tampering possibilities are in large numbers and hiding data in some way is the possible solution on it .By using public key cryptography user can protect his personal and financial information. The merchant cannot read this information in the payment transaction. [3]

3. Working of set protocol

SET is an open encryption and security specification designed to protect credit cad transaction on the Internet.

♦ Confidentiality of information:

The information of card holder must kept secure and prevented from the merchant by gating any data from the users card .the information is available only to the getaway for performing transaction in encrypted form .

♦ Data Integrity:

SET performs a operation of data integrity by using the Digital signature with hash codes like SHA-1.Certain messages are also protected by HMAC using SHA-1.

♦ Cardholder’s Authentication:

SET verifies the cardholder’s validity according to account number with digital certificates by using X.509v3.

♦ Merchant authentication:

Cardholders to verify that a merchant has a relationship with a financial institution allowing it to accept payment cards.

♦ Dual Signature

In case of Dual signature we have to combine to different massages which are coming from same resource .The order information sent by customer to merchant and the payment information is to be sending to bank. The merchant dos not need to know about the bank information that is the information related with credit card and the bank has no deal with product information .In such case Dual signature plays an important role .As shown bellow

[4]

The protocol also helps to avoid duplicate payment information or order information which is generated by mistake by the customer Figure shows the use of a dual signature to meet the requirement. The order information and payment information are collected in a hash SHA-1, the two values then concatenated and the result is taken as shown in fig.

♦ Cardholder certificate

A payment gateway needs a key called as public key which is present in cardholders certificate .By receiving the purchase order merchant verifies it and send it to gateway for further process

♦ Purchase request

User completes his selection customer sends the purchase request .merchant sends a form to the customer to send it back to the merchant my filling it ,SET generates a purchase certificate and send it to the gateway .This can be done when the massage is exchanged which is present in the purchase request. This message includes the brand of the credit card that the customer is using. The message also includes an ID assigned to this request.

♦ Payment Authorization

The cardholder fills out a payment information form to pay for a purchase the gateway collects the payment information and sends it, securely encrypted, to the processing bank for the processing bank sends the request, through payment networks. The processing bank plays an role by just forwarding it to the merchants bank for complete the transaction according to the request. When the transaction is get approved by the bank merchant has to submit the payment request receipt. The bank then credits the merchant’s account the card issuer bank then sends the transaction to the cardholder.

4. Advantages of SET protocol

1. Symmetric encryption:

The symmetric setting considers two parties who share a key and will use this key to communicate data with various security attributes. The main security goals are privacy and authenticity of the communicated data.

Message Authentication Code:

Message authentication involves two aspects:

• Source authentication, which verifies the identity of the source, prevents the acceptance of messages From a fraudulent source.

• Data integrity, which protects the data from modification

3. Ease of use for customers: SSL is already built into commonly used Web browsers and there is no need to install any additional software.

4. Low complexity: the system is not complex, resulting in minimal impact on transaction speed.

5. Conclusion

E-commerce is a new era of business which gives a new angel to the customer and the merchant to know the worldwide market on a single click. But it is totally depend on the security and faith.

E-commerce is the ability to do business through the Internet. E-commerce security is the major issue keeping many commerce organizations afraid from using Internet for their business. We primarily focused on the trust factor and end to end security of the protocol and quality of service. In daily practice it was observed that the business over internet is going safe with all aspect like security, integrity and Confidentiality. SET is a little more efficient than EDI in that it does provide for strict security and Authentication of trading partners. It also provides error handling capability. By using SET we can secure the users information which can be use by any unwanted person or organization; it also helps to protect the transaction details and merchant’s interaction with user’s personal information .SET plays an important role in today growing e business.