SET also encrypts credit and purchase information before transmission on the Internet. In the meantime there are already rival systems to SET available from several companies including Cyber Cash, Verifone and First Virtual. In the process of setting up the wallet, the user provides their credit-card information, and receives an encrypted code that refers to their credit card in return credit card numbers are only stored in the Wallet, not at the merchant's server and not by Cyber Cash or Verifone. When making a purchase at a participating Web store, the wallet passes the code to the merchant. The merchant then hands that code, along with the purchase price, to the wallet issuer who verifies the transaction with the credit-card company, and transfers the funds to the merchant along with an authorization to ship the product.
Customers can then use their Virtual PIN in lieu of a credit card number.
For each purchase, First Virtual sends the user an e-mail message asking them to confirm the transaction. Once First Virtual receives the confirmation back, the credit card transaction is processed off the Internet and an e-mail sent to the merchant authorizing them to ship the goods. Users convert funds from their regular accounts into e-cash and then transfer it to the purse software, where it is stored on the user's hard drive in encoded form until it is spent. When making a purchase with e-cash, the user transmits the relevant amount of tokens to the merchant who relays them to the bank for verification and redemption. Users seeking privacy in their transactions cannot use credit cards as they are highly traceable.