eCommerce Security is the first issue that clicks to mind when transaction with Credit Card payments over the Internet, though it is one where the perceived threat is far greater than the reality of the situation. Most eCommerce merchants leave the mechanics to their hosting company or IT staff, but it helps to understand the basic principles. Any system has to meet four requirements:
Transaction Security is one of the most important aspects for businesses operating online. There are always stories in the news about credit card numbers being collected by individuals online. To combat this, all transactions will go through a secure transaction line, provided through the company's financial institution. All processes are handled by the bank, ensuring a highly secure line that will instill customers with trust.
To immensely a plain text message is run through a hash function and so given a value: the message digest. This digest, the hash function and the plain text encrypted with the recipient's public key is sent to the recipient. The recipient decodes the message with their private key, and runs the message through the supplied hash function to that the message digest value remains unchanged (message has not been tampered with). Very often, the message is also timestamped by a third party agency, which provides non-repudiation.
Information sent over the Internet usually uses the set of rules called TCP/IP. The information is broken into packets, numbered sequentially, and an error control attached. Individual packets are sent by different routes. TCP/IP reassembles them in order and resubmits any packet showing errors. SSL uses PKI and digital certificates to ensure privacy and authentication. The procedure is something like this: the client sends a message to the server, which replies with a digital certificate. Using PKI, server and client negotiate to create session keys, which are symmetrical secret keys specially created for that particular transmission. Once the session keys are agreed, communication continues with these session keys and the digital certificates.
To full-fill orders and ship orders, information collected from users may be needed by service providers to complete transactions. In this event, only information needed to complete the sale and or delivery of the purchased products will be disclosed to any service provider.
If you put into practice the following measures, you can ensure that your exposure to fraud and criminal activity risk is manageable: