Re: Visa & MC Std

[Jeff Weinstein <jsw@netscape.com>]

Clay Olbon II wrote:
> 
> At 8:25 AM 2/1/96, pj ponder wrote (much elided):
> 
> >AN FRANCISCO -- Hoping to remove a major impediment to credit card
> >transactions over the Internet, a business group led by Mastercard
> >International
> >and Visa International plans to announce an industry-standard technology
> >Thursday for protecting the security of electronic payments.
> ...
> >
> >The software standard, called Secure Electronic Transactions, or SET,
> >will permit a user to send a credit card account numbers to a merchant
> >in a scrambled
> >form.
> >
> >The scrambled number is supposed to be unintelligible to electronic
> >eavesdroppers and thieves -- and even to the merchants receiving the
> >payment.
> >
> >But a special code is supposed to enable the merchant to check
> >electronically and automatically with the bank that issued the credit
> >card to make sure that it is a
> >valid card number and that the customer is the authorized user of the
> >card. The number-scrambling part of the system is based on a well-known
> >and widely used
> >national software standard known as the Data Encryption Standard.
> 
> ----------------

  First a disclaimer.  I have not studied the drafts of the protocol,
or been directly involved with its development.  I do know a few things
and I will try to answer to the best of my abilities.

> A few psueudorandom points regarding this post:
> 
>         First, it seems silly to implement a separate standard that only
> works for the credit card number.  What about the privacy of the rest of
> the info (what I am ordering, how much, etc.).
> 
>         Can (or will) this be layered with Netscape's SSL?

  I don't know if the spec will specify SSL as the required transport, but
I think that our products will use it.

>         How is this to be implemented?  It sounds like the merchants will
> just pass the encrypted number to the credit card company.  If this is the
> case, key management could become an issue.  I suppose this could easily be
> implemented using public key crypto, but only DES was mentioned.  If only
> DES is used and everyone uses the same DES key, that would be a valuable
> key to break!

  RSA will be used in addition to DES (or perhaps something stronger).

>         How about a MITM attack.  Get the encrypted credit card #, and
> change the purchase amount, delivery info, etc if that is not encrypted.

  There is stuff in the protocol to prevent MITM and replay attacks.
I'm not familiar with the details, but I know that they have been
thinking about these problems for a long time.

> If there is anyone on the list with more info on this, I would love to hear
> it (heopfully we will hear something from Netscape, since they are quoted
> in the article).  From what I know so far, it seems like a poor compromise.

  It is hard to get even the flavor of the protocol in a press release that
has been dumbed down for the general population.  I believe that the spec
will be released for a public review period before it is finalized, so you
should have a chance to review it and get your comments in.

	--Jeff

-- 
Jeff Weinstein - Electronic Munitions Specialist
Netscape Communication Corporation
jsw@netscape.com - http://home.netscape.com/people/jsw
Any opinions expressed above are mine.