The present invention is directed to a system and method for monitoring and reporting status and conditions during a data collection session between an application program and a peripheral device. The present invention provides a proxy service that filters communication bi-directionally and provides for a substitution of procedures in the event of a device related error. Through the substituted procedure any one of a number of error handlers can be utilized to notify a user of the error condition. Further still, after the error condition has been resolved, the data collection session can resume from where it left off rather than being completely restarted.