Question

Which of the following security system is used by major credit card companies to make online transactions secure?

• A. TET
• B. SET
• C. PET
• D. RET

Hint:

{SET (Secure Electronic Transaction)} was developed by credit card companies to ensure secure payment processing on the internet.

Answer 1

The Correct Option is B

Step 1: Understanding online payment security.
With the rapid growth of E-Commerce, online transactions using credit cards have become very common. However, transmitting sensitive information such as credit card numbers, passwords, and personal details over the internet can expose users to cyber threats like hacking and data theft.
Therefore, special security systems and protocols are used by credit card companies and financial institutions to ensure that online transactions remain safe and protected.
Step 2: Meaning of SET (Secure Electronic Transaction).
SET (Secure Electronic Transaction) is a security protocol developed by major credit card companies such as Visa and MasterCard. It was designed specifically to secure credit card transactions over the internet.
SET uses advanced encryption techniques to ensure that payment information remains confidential and cannot be intercepted by unauthorized users during transmission. It also authenticates both the merchant and the cardholder, ensuring that both parties involved in the transaction are legitimate.
Step 3: Analysis of the options.
(A) TET: Incorrect. This is not a recognized online transaction security protocol.
(B) SET: Correct. It stands for Secure Electronic Transaction and is used to protect online credit card payments.
(C) PET: Incorrect. This does not represent a payment security protocol.
(D) RET: Incorrect. This is not related to online transaction security.
Step 4: Conclusion.
Thus, the security system used by major credit card companies to make online transactions secure is SET.
Final Answer: SET