Within seconds the bank knows whether or not the user is who they claim to be, processes the authorization and assures the merchant that the cardholder has sufficient available cash or credit to make the purchase. Supporters of the new security standard predict that merchants will benefit from reduced operational costs once associated with the process of card clearing, since that process will now be managed by the software rather than by an associate. SET backers also believe that usage will gain momentum as it becomes more widely understood, accepted and integrated by on-line retailers. They anticipate that the pace of change will vary according to a number of factors, including the size of the retailer and whether or not it operates its own merchant server. For some, SET software will work with what is currently installed on the merchant's server and the upgrade will primarily involve the purchase of the software.
Consumers have to get a piece of software from their bank that is essentially an electronic wallet.
This software will reside in each user's system, so that when they initiate a transaction it will pop up and the authorization process will begin. Tandem this winter introduced the iTP Virtual Storefront and the iTP Payment Solution. The company bills its iTP Virtual Storefront software as a private, secure, reliable and scaleable environment that delivers the widest range of payment card systems, databases, web servers, browsers and high security via the use of the SET 1.0 protocol. Industry experts say that using the SET protocol for payment transactions over the Internet is just the beginning, describing it as the starting point for a new model of conducting business within a network environment. The possibility exists for it to support a wide variety of transactions, including checks and electronic funds transfer.