N-GEN Communications Web-based Seminars ©NGCS

Seminar - An Overview of Communications Technologies

Module 6 - Internet, Intranet, Extranet, e-Commerce and Web Services                                      Slide 41 of 70 _________________                                                                                  __________

                           Security Schemes in Electronic Payment Systems

                                Authentication

                                Encryption

                                Integrity

                                Nonrepudiation

_________________                                                                                  __________

Security has been a major concern in e-Commerce to win the confidence of consumers. Prospective consumers are wary of giving credit card information on the Web. Merchants worry that hackers will enter into their databases to steal company information. Four essential requirements for secure transaction are authentication of buyers identity, ensuring messages are only deciphered by authorized people ensuring the integrity of the information during transmission and ensuring protection against customer's denial of orders placed and merchant's denial of payments made.

Authentication - Authentication means a business or a corporation or a computer can validate a user identity. The most common methods used for an individual are a password, identification key, biometric characteristics, or a third party authentication. Network security systems use Passwords, Personal Identification Numbers (PIN), Digital Signatures and Digital Certificates.

Encryption - Encryption is a technique used to manipulate data into an indecipherable form before being transmitted. At the receiving end data is changed back to its original form. Encryption techniques use Public and Private keys to manipulate and recover the transmitted data.

Integrity - Integrity means information is not manipulated while transmitted over the network. The contents of the message have not been modified intentionally or accidentally during the transmission.

Proof of a Third Party Required - A third party is required to settle the dispute if the consumer denies receiving the product or the merchant denies sending the merchandize. The third party is needed to verify what information was requested, if it was sent and if it was received and acknowledged.