A satisfactory Internet payment system needs to be easy to use, fast, and especially trusted. The most popular form of payment which is used today on the Internet is based on the credit card. In this study the position of credit cards on the Internet was analysed with special attention on security issues involved. Security Security, and more specifically, security of payment is a the major bottleneck which slows down the growth of Internet commerce. Security today is made possible using encryption, digital signatures, certificates, and certificate authorities.
Encryption is the main component providing security within payment systems.
Payment systems need to be evaluated on certain security criteria. In this study a list was compiled of evaluation criteria for payment systems as illustrated in table 6-1. An overview of the usage of credit cards in the physical world was given to get a better understanding of their use on the Internet. The systems based on a third party offer the best security. SET is the only system which can provide non-repudiation in addition to confidentiality, integrity, and authentication.