D. Electronic Check Project A prototype being developed by the Financial Services technology Consortium, with goal of developing a system that can work independently of the hardware, software, and financial service provider. 1. uses public-key cryptography to allow individuals to electronically issue and digitally sign a payment instructions and to transmit it over public networks, where it can be verified by the recipient as being a legitimate authorization from an authentic aoount. Uses tamper-resistant hardware to add additional security against fraud. Portability customers can carry it anywhere. At present no standard way of sending secure payment instructions over the Web.
Consumers have to go off-line in order to use their credit cards to buy something.
Safe credit card-based commerce won t be possible until security standards are in place. A. Types of Credit Card Payments 1. payments using plain credit card details exchange of unencrypted crdit cards over a public network. Lack of security and authentication are problems. Payments using encrypted credit card details cost is a problem, prohibiting micropayments. 2. merchant validates customer s identity as the owner of the credit card account.