A method of conducting a payment transaction involving detection of a payment device, comprising: detecting using wireless communications technology of a device reader or terminal, a presence of the payment device having a contactless element capable of communication and data transfer using a wireless communications technology comprising a short-range data transfer technology utilizing RFID, receiving, by the device reader or terminal, data identifying a payment account or consumer associated with the payment device, determining, by the device reader or terminal, that an interaction with the payment device or a consumer is required prior to performance of the payment transaction, determining, by the device reader or terminal, that the interaction has been performed; and detecting, using the wireless communications technology comprising the short-range data transfer technology utilizing RFID of the device reader or terminal, the presence of the payment device, and performing, by the device reader or terminal, the payment transaction, involving transferring consumer identity or authentication data to the device reader or terminal, using the contactless element, wherein performing the payment transaction also comprises creating an authorization request message and transmitting the authorization request message to an Issuer of the payment device; and determining that an issuer update for the payment device is required, wherein the method further comprises one of: (i) requesting that the payment device be presented to the device reader or terminal, and performing the issuer update on the payment device using the device reader or terminal, and (ii) receiving, by the payment device, in case the payment device is a mobile phone, an issuer update over the air via a cellular network from the issuer, wherein determining, by the device reader or terminal, that an interaction with the payment device or a consumer is required prior to performance of the payment transaction comprises determining, by the device reader or terminal, that the interaction with the payment device is required prior to performance of the payment transaction, and wherein the method further comprises: receiving the consumer identity or authentication data from the payment device, after the user provides the consumer identity or authentication data to the payment device. detecting using wireless communications technology of a device reader or terminal, a presence of the payment device having a contactless element capable of communication and data transfer using a wireless communications technology comprising a short-range data transfer technology utilizing RFID, receiving, by the device reader or terminal, data identifying a payment account or consumer associated with the payment device, determining, by the device reader or terminal, that an interaction with the payment device or a consumer is required prior to performance of the payment transaction, determining, by the device reader or terminal, that the interaction has been performed; and detecting, using the wireless communications technology comprising the short-range data transfer technology utilizing RFID of the device reader or terminal, the presence of the payment device, and performing, by the device reader or terminal, the payment transaction, involving transferring consumer identity or authentication data to the device reader or terminal, using the contactless element, wherein performing the payment transaction also comprises creating an authorization request message and transmitting the authorization request message to an Issuer of the payment device; and determining that an issuer update for the payment device is required, wherein the method further comprises one of: (i) requesting that the payment device be presented to the device reader or terminal, and performing the issuer update on the payment device using the device reader or terminal, and (ii) receiving, by the payment device, in case the payment device is a mobile phone, an issuer update over the air via a cellular network from the issuer, (i) requesting that the payment device be presented to the device reader or terminal, and performing the issuer update on the payment device using the device reader or terminal, and (ii) receiving, by the payment device, in case the payment device is a mobile phone, an issuer update over the air via a cellular network from the issuer, wherein determining, by the device reader or terminal, that an interaction with the payment device or a consumer is required prior to performance of the payment transaction comprises determining, by the device reader or terminal, that the interaction with the payment device is required prior to performance of the payment transaction, and wherein the method further comprises: receiving the consumer identity or authentication data from the payment device, after the user provides the consumer identity or authentication data to the payment device. receiving the consumer identity or authentication data from the payment device, after the user provides the consumer identity or authentication data to the payment device.