Chinese Debit Card Secure Electronic Payment System

With the rapid development and global application of electronic transaction characterized as on-line payment, SET (Secure Electronic Transaction) protocol is acknowledged as international security standard of credit card payment on Internet due to its superior security performance. But Chinese debit card SET payment cannot be fulfilled if it exactly follows SET protocol. This thesis, based on Chinese debit card consumption situation, proposes a SET electronic payment model and conducts an outlined design according to this proposal.The first chapter analyzes the importance, necessity, and feasibility of building up electronic payment system in China. The goal and principle of the system design is presented after the analysis of the requirement of secure electronic payment system appropriate for China through the research into the current electronic payment tools.This thesis puts emphasis on the second chapter. Firstly, it introduces the development background of the electronic payment system, makes a comparison between two main protocols: SSL and SET, and arouses further survey into SET, including participants, ali stages in the transaction, concerning technology, and transaction flow. Secondly, following SET1.0 standard and regarding the leading role of debit card on-line payment in china, a SET payment model for Chinese debit card is provided after the analysis of Chinese current electronic transaction. This model adopts the basic structure and message processing, and supports the main requirements of SET, specifies the payment flow and message optimization of Chinese debit card SET payment. By analyzing the indispensable and optional messages in Chinese debit card payment, it puts fonvard relevant optimized strategies, which are meant not only to optimize the system and increase its performance, but also to enhance the authentication of the cardholder's identity. This model effectively solve the technological problems encountered in chiese debit card pavment based on SET protocol. Thirdly, it designs the sofhvare, i.e. electronic wallet, for the cardholder, and relates in detail the main functions and attributes of the electronic wallet. Fourthly, it conducts a discussion about the security and interoperatability of the electronic payment system adopting this model.The conclusion provides some strategies to reform the payment system in next step.