At 12:47 PM 6/12/2001 +0100, Rachel Willmer wrote:
>--On 08 June 2001 06:21 -0400 "R. A. Hettinga" <rahshipwright.com> wrote:
>I don't know about 3D-SSL, or 3D Secure, but the "3D" in 3D *SET* stands
>>for "3 Domain". God knows what that means.
>It means "3 Domain" rather than the original model which had 4, I think.
>The basic idea is that you no longer have to enforce/enflict SET as far as
>the consumer - the consumer can be authenticated by their bank in anyway
>the bank feels comfortable with.

For those not facile in the credit card processing world, the four players are
1) the consumer
2) the merchant
3) the merchant's bank (acquiring bank)
4) the consumer's bank (issuing bank)

The original SET design focused on ensuring that the merchant was legit, and
that the consumer was legit. Part of the reason SET failed was that the
issuing banks
realized that SET would cost them billions of dollars to
setup/issue/maintain/deactivate
certificates for the consumers, yet the only thing that the certs did was
protect the issuing bank from the consumer. Since the issuing bank has a
relationship
with the consumer, and can control the account, this was no real benefit to the
bank.

The original CyberCash credit protocols (circa 1996) did not bother with
consumer certs,
rather it kept a database of valid accounts. Worked fine in practice for
four or so years
(until I left).

What I find interesting about the new three Domain SET is that it is
leaving out
the #1 party. And keeping the #2 acquiring bank.

Back when physical charge slips were carried to the bank, having an
acquiring bank
made sense. It was also clear years ago that an electronic payment system
could easily present the purchase directly from the merchant to the
consumer's issuing
bank, skipping one whole set of transactions, overhead and fees.

Of course, this was rarely mentioned arround banks, as most had both an
issuing and
an acquiring side, with fees on both.

Pat

Pat Farrell voice: (703 587-9898)
               email: pfarrellpfarrell.com
               text pager: 7035879898messaging.sprintpcs.com

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