Patent ID: 7587756

Claim:
A method for securing a transaction utilizing a proximity integrated circuit (PIC) transaction device and a merchant system comprising: determining a first merchant action analysis result, at the merchant system, based at least in part on one of an authentication of the PIC transaction device using Offline Data Authentication (ODA), a transaction process restriction, and a merchant risk management factor, the first merchant action analysis result indicating at least one of approving the transaction offline, approving the transaction online, and denying the transaction; requesting, by the merchant system, an application cryptogram from the PIC transaction device, the application cryptogram being one of a cryptogram for approving the transaction offline, a cryptogram for approving the transaction online, and a cryptogram for denying the transaction based on the first merchant action analysis result; determining a first card action analysis result, at the PIC transaction device, the first card action analysis result indicating at least one of approving the transaction offline, approving the transaction online, and denying the transaction; transmitting, by the PIC transaction device, the first card action analysis result to the merchant system, wherein the first card action analysis result includes the requested application cryptogram; requesting, by the merchant system, based on at least one of the first merchant action analysis result and the first card action analysis result, an authorization response from a PIC issuer system; and if the merchant system receives the authorization response from the PIC issuer system, determining, at the merchant system, based at least in part on a predetermined rule and at least one of the first merchant action analysis result and the first card action analysis result, whether to approve the transaction offline or deny the transaction offline.