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. Electronic Payments Network - EPN

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

    An accounting entry that results in either an increase in assets ...
  4. Bank Card

    Any card issued against a depositary account, such as an ATM ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Closed Loop Card

    A credit card or gift card that a consumer can only use to make ...
RELATED FAQS
  1. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Full Answer >>
Related Articles
  1. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  2. Options & Futures

    Automating Your Bill Payments

    Automation can be a painless (and free) way to remove the stress of bill scheduling from your life - if you do it right.
  3. Retirement

    Electronic Trading Tutorial

    Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
  4. Savings

    Which Are The Best Credit Cards To Take To China?

    Credit cards are now much more widely accepted in China – and one issuer leads the pack, due to its deal with China UnionPay, the Chinese bankcard network.
  5. Credit & Loans

    Chase Sapphire Preferred Vs. AmEx Platinum

    Chase Sapphire Preferred has many rewards and is much cheaper. Is American Express Platinum worth its premium price? That depends.
  6. Credit & Loans

    How to Challenge & Win A Credit Card Dispute

    Found an error on your credit card statement? Five strategies to persuade the card issuer to fix it in your favor.
  7. Credit & Loans

    Review: Barclaycard Rewards MasterCard

    If you're looking for a rewards card and you have an average credit score, this one's worth investigating.
  8. Savings

    Avoid Credit Card Rewards Devaluation At All Cost!

    If you don't know how to redeem your rewards points, we'll show you the easiest way to avoid rewards devaluation this year.
  9. Credit & Loans

    Which Credit Cards Are Best In Europe?

    These cards avoid the main credit issues facing U.S. travelers to Europe – foreign transaction fees that make purchases more costly and no EMV chips.
  10. Credit & Loans

    Review: Discover Credit Cards

    Discover it cards still offer generous rewards and no annual fee. But how generous depends on which card you end up with, and what your credit score is.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center