QUESTION TWO (20 MARKS)

a) Explain SET protocol used in credit card transactions. What is the main interesting aspect of

SET protocol which gives confidence to customers transacting business using the internet?

[10 Marks]

b) What type of electronic payment systems are required in E-Commerce? Why are there different

types of payment systems? Explain the necessary characteristics of each type of payment

system and give an example of each where it is used.

[10 Marks]

QUESTION THREE (20 MARKS)

a) In a cinema ticket reservation system, where online booking of tickets can be done in any

cinema hall in the country. Client connects to a reservation server for signing into reservation

system. This in turn uses services of two or more servers for Booking and Payment services.

Explain the issues involved in implementing and maintenance of this system. [12 Marks]

b) Explain the Legal issues of Internet Commerce .

[8 Marks]