Secure Electronic Transaction - A Complete Guide

In the past decade, technology and expertise has revolutionised the way the world functions and has made living in a tech-savvy world easier. With technology being used in every sector, banks too, have created a way for people to bank conveniently, from any place and at any time.  Mobile and Internet banking have become a commonplace today. With 24*7 access to all facilities at the touch of a button, transacting online has become very convenient and has grown in number. Most transactions often take place in a safe system to ensure that sensitive financial information of debit and credit cards is not leaked in wrong hands. But what exactly keeps your banking transactions safe?

The most important of such measures is Secured Electronic Transaction mechanism or SET. Secure Electronic Transaction (SET) is a system for ensuring the security of your financial transactions on the Internet.


Under this mechanism, an individual is given an electronic wallet i.e. a digital identity. All online transactions are then conducted and verified using a combination of digital certificates and digital signatures. The major parties involved during such transactions are the purchaser i.e. the individual purchasing a product, the merchant who is selling the product and the bank who works in a way to ensure confidentiality.

Secure electronic transaction (SET) is primarily used to secure electronic credit card payments. It helps in safe transmission of credit card information via the internet so that hackers and online thieves cannot access it without your permission.


Here are some key points about how SET functions-

  • Digital certificates are usually generated for all participants in the transaction, along with matching digital keys that allows them to confirm the identities of the other party. This means that if you purchase a book from Flipkart and pay for it via your credit card, the digital keys will be generated for you, Flipkart i.e. the merchant and the concerned bank which will help you establish authentic identities.
  • This system ensures that only the party with the right digital key can confirm the transaction. This way your credit card or bank account cannot be used without revealing intricate details like account numbers.

At HDFC bank, we make sure that your data is maintained in a secure and protected medium so that you experience utmost levels of safety and convenience while transacting online.