Methods and apparatus for a smartcard system are provided which securely
and conveniently provides for secure transaction completion in a contact
or contactless environment. The invention utilizes selection of
processing applications based on the account issuer parameters and risk
factors (stored on a smartcard) and merchant system parameters and risk
factors (stored on a merchant system database). The invention permits a
merchant system and smartcard to exchange information useful for
determining if particular transactions should be completed online or
offline.