Secure Electronic Transaction - SET

AAA

DEFINITION of 'Secure Electronic Transaction - SET'

A form of protocol for electronic credit card payments. As the name implies, the secure electronic transaction (SET) protocol is used to facilitate the secure transmission of consumer credit card information via electronic avenues, such as the Internet. SET blocks out the details of credit card information, thus preventing merchants, hackers and electronic thieves from accessing this information.

INVESTOPEDIA EXPLAINS 'Secure Electronic Transaction - SET'

Secure electronic transactions are backed by most of the major providers of electronic transactions, such as Visa and MasterCard. SET allows merchants to verify their customers' card information without actually seeing it, thus protecting the customer. The information on the card is instead transferred directly to the credit card company for verification.

RELATED TERMS
  1. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  2. Bank Card

    Any card issued against a depositary account, such as an ATM ...
  3. Electronic Payments Network - EPN

    An electronic automated clearing house (ACH) that serves as the ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Debit

    An accounting entry that results in either an increase in assets ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. Your First Checking Account
    Insurance

    Your First Checking Account

  2. Automating Your Bill Payments
    Options & Futures

    Automating Your Bill Payments

  3. What is after-hours trading? Am I able ...
    Investing

    What is after-hours trading? Am I able ...

  4. Electronic Trading Tutorial
    Retirement

    Electronic Trading Tutorial

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center