by Dinesh Thakur Category: Electronic Commerce

Funds are transferred electronically from the customers bank account to yours. (This is a highly simplified explanation, and is accurate in the most general sort of way. However, the bottom line is that the customer buys, and at some point the funds are removed from his or her account and ultimately deposited into yours.)

 
by Dinesh Thakur Category: Electronic Commerce

This also uses digital certificates, which also come from Certificate Authorities, but here another organization known as a proxy merchant is also involved. The idea is that buyers send their, suitably encrypted, credit card details to the proxy merchant which performs the same identity check as for SSL. Assuming everything is in order this proxy merchant then sends an authorization to the seller, but withholds the credit card details. From the point of view of the seller they have the go ahead to complete the transaction, they will get paid, while the actual details of the credit card are, to them, irrelevant. All they need to know is that the card is genuine. It is therefore only the proxy merchant which can match credit card details to name and addresses.

 

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