Design, implementation, and deployment of the iKP secure electronic payment system

• Published in: IEEE journal on selected areas in communications Vol. 18; no. 4; pp. 611 - 627
• Main Authors: Bellare, M., Garay, J.A., Hauser, R., Herzberg, A., Krawczyk, H., Steiner, M., Tsudik, G., Van Herreweghen, E., Waidner, M.
• Format: Journal Article
• Language: English
• Published: New York IEEE 01.04.2000; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Authorization; Computer programs; Computer science; Credit cards; Cryptographic protocols; Design engineering; Electronic commerce; Electronics; Hardware; Internet; Laboratories; Networks; Payment systems; Protocol (computers); Public key cryptography; Security
• ISSN: 0733-8716; 1558-0008
• DOI: 10.1109/49.839936

This paper discusses the design, implementation, and deployment of a secure and practical payment system for electronic commerce on the Internet. The system is based on the iKP family of protocols-(i=1,2,3)-developed at IBM Research. The protocols implement credit card-based transactions between buyers and merchants while the existing financial network is used for payment clearing and authorization. The protocols are extensible and can be readily applied to other account-based payment models, such as debit cards. They are based on careful and minimal use of public-key cryptography, and can be implemented in either software or hardware. Individual protocols differ in both complexity and degree of security. In addition to being both a precursor and a direct ancestor of the well-known SET standard, iKP-based payment systems have been in continuous operation on the Internet since mid-1996. This longevity-as well as the security and relative simplicity of the underlying mechanisms-makes the iKP experience unique. For this reason, this paper also reports on, and addresses, a number of practical issues arising in the course of implementation and real-world deployment of a secure payment system.