credit card &SET

8/7/2019 credit card &SET

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CREDIT CARDS & SET

BY

ABIRAMI.U


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CONTENTSy Credit Cards

y How Does It work

y

Interest Chargesy Benefits to the Customers

y Demerits to the Customers

y Benefits to the Merchants

y Parties Involvedy Transaction Steps

y Types of Credit Cards

y SET


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CREDIT CARDS

A Credit card is a small

plastic card.

It allows the holder to buy

goods and services.


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CREDIT CARDS

Credit cards allow the consumers to

'revolve' their balance, at the cost ofhaving interest charged.

Its size is defined as 85.60 53.98 mm by ISO.


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HOW DOES IT WORK

Credit cards are issued after an account has been

approved by the credit provider.

Then the cardholders can use it to make purchases at

merchants accepting that card.


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HOW DOES IT WORK

y When a purchase is made, the credit card user agrees

to pay the card issuer. The cardholdersigns a receipt with a record of the card details andindicating the amount to be paid or by entering apersonal identification number (PIN).


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INTEREST CHARGES

y Credit card issuers usually do not pay interest charges

if the balance is paid in full each month.

y But typically will charge full interest on the entireoutstanding balance from the date of each purchase if

the total balance is not paid.


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BENEFITS TO THE

CUSTOMERS

Convenience

Security


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DEMERITS TO THE

CUSTOMERS

y High Interest.

y Inflated Pricing for All Consumers.


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TYPES OF CREDIT CARDS

y Secured Credit Cards

y Pre-Paid Credit Cards


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SECURE ELECTRONIC TRANSACTIONS

The credit cards on internet requires,

Authentication of customers and merchants

Confidential transactions


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PARTICIPANTS IN SET

Card Holder

Merchant Bank

Issuer

Internet

Acquirer

Payment Network


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SET REQUIREMENTS

y Confidentialityy Integrity

yAuthentication

y Security by creating protocalls

y Inter-operablity


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SET TRANSACTIONS1. Customer places the order

2. SET sends order and payment information to the

merchant3. Merchant forwards the payment information to the bank.

4. Bank checks for authorization of payment

5. If valid customer then the bank authorizes the payment

6. Merchant completes the order7. Merchant receives payment from the bank

8. Bank send the bill details to the card holder


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MERITS OF SET

y Confidentiality

y IntegrityyAuthorization of customer and merchant by digital

signatures

y Privacy by separation of order and payment

information using dual signatures

credit card &SET

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