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. Bank or processing party relays the info to the customer s bank for authorization approval. Customer s bank return the credit card data, charge authentication and authorization to the merchant. The Internet Payment System gets around the credit card security problem by ensuring that the credit card number never travels over the Internet. FV payment server cerifies customer s account number for the vendor and checks for sufficient funds 5.