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. Bank

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

    An accounting entry that results in either an increase in assets ...
  3. Debit Card

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

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

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

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center