Comparing digital certificates and credit cards

Nov 1, 2001 12:00 PM, Yuriy Dzambasow

Let's draw a comparison between digital certificates and credit cards. Typical PKI implementation is roughly equivalent to a mom-and-pop grocery store attempting to develop and implement their own credit card without honoring universally accepted cards such as Visa, MasterCard, or American Express. Obviously, the risk management, accounting issues, and contract infrastructure would prevent such a strategy. It's simply too cumbersome to execute on their own — much like PKI.

Decades ago, businesses and consumers saw no need for, or benefit from, a widely accepted credit card such as Visa. Today, however, credit cards are a universally accepted, trusted and often preferred way of doing business.

What changed? Businesses began accepting credit cards, so more consumers began using them. The underlying factor was convenience. Moreover, there was an underlying contract infrastructure in place that detailed how the program worked, and what the rules were if something went wrong. The businesses that accept the cards, the issuing bank and the cardholders, have well-defined and enforceable rights that make the transaction a manageable risk for each.

For a minimal investment — inexpensive hardware and a small per-transaction fee — businesses that accept credit cards dramatically increase their level of customer satisfaction and sources of revenue, while automating many transactions. PKI is heading in the same direction.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.

This month in Access Control

• Targeting The Customer
• Electronic Pedigrees
• One Hero Among Many
• Who? What? When? Where? Why?
• More from September's issue