"Anders Rundgren" <[EMAIL PROTECTED]> writes:
> 3D Secure (a.k.a. VbV) is an interesting twist to this as it really
> (under the user's "supervision") connects the merchant and the card-
> holder's bank for getting as fresh information there can probably
> be.  Also relying on PKI.  Scales incredible well as you only need
> one cert per bank and CC brand.

Are you saying that the PKI scales or the infrastructure scales?

It would appear to be a descaling of PKI ... since there is only "one
cert per bank".

It is also has some number of operations that could be considered
antithetical to the PKI design point. The consumer bank and the
consumer have a predefined relationship. It is possible for the
consumer bank to ship their public key for direct installation in the
consumer's trusted public key repository.

The PKI design point has trusted third party CAs ... installing
their public key in the consumer's trusted public key repository
... the original model from the original electronic commerce
http://www.garlic.com/~lynn/aadsm5.htm#asrn2
http://www.garlic.com/~lynn/aadsm5.htm#asrn3

with this thing called SSL.

The CA's then digitally signed digital certificates for operations
that the consumer had no prior relationship with. The consumer could
validate the digital certificates with the "CA" public keys on-file in
their local trusted public key repository (possibly manufactored and
integrated into their application, like a browser).

For predefined relationship between a consumer and their financial
institution ... they can exchange public keys and store them in their
respective trusted public key repositories (a financial institution
can provide the consumer some automation that assists in such an
operation).

PKI would appear to actually make the existing infrastructure less
secure ... rather than the consumer directly trusting their financial
institution ... the consumer would rely on a TTP CA to provide all
their trust about their own consumer financial institution.

In the mid-90s there was work done on PKI for payment transactions.
One of the things learned from the early 90s, x.509 identity
certificates ... was that they appeared to represent significant
privacy and liability issues. As a result many institutions retrenched
to relying-party-only digital certificates ... 
http://www.garlic.com/~lynn/subpubkey.html#rpo

that contained little more than some sort of database lookup value
(like an account number) and a public key. however, it was trivial to
demonstrate such certificates were redundant and superfluous.  One
possible reason for the ease in demonstrating that such stale, static
certificates were redundant and superfluous was that they appeared to
totally violate the basis PKI design point, aka requiring a
independent, trusted third party to establish trust between two
entities that never previously had any interaction.

For two parties that have pre-existing relationship, it is possible
for them to directly exchange public keys and store them in their
respective trusted public key repositories .... and not have to rely
on a trusted third party to tell them whether they should trust each
other. In the case where a consumer's financial institution is the
only entity with a public/private key pair ... it is possible for the
consumer to obtain the public key of their trusted financial
institution ... not needed to rely on some independent third party to
provide them with trust.

The other issue from the mid-90s in the PKI-oriented payment
transaction specification ... was that besides using redundant and
superfluous stale, static certificates ... they also represented
enormous payload bloat for the financial infrastructure. The typical
iso 8583 payment transaction is on the order of 60-80 bytes. The
RPO-certificate overhead for the operation was on the order of 4k to
12k bytes.  The stale, static, redundant and superfluous digital
certificate overhead represented an enormous, one hundred times
increase in payload bloat.

Another other question ... are you saying that the complete
transaction goes via this new path ... or does the existing real-time
iso 8583 transaction have to be performed in addition to this new
real-time function have to also be performed (at least doubling the
number and overhead for real-time operations).

The existing iso 8583 operations goes as straight-through processing
in a single real-time round trip. Does the introduction of these
new operations improve on the efficiency of that existing
single round-trip, straight through processing?

-- 
Anne & Lynn Wheeler | http://www.garlic.com/~lynn/
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