Patent ID: 8386349

Claim:
A method of processing a transaction, the processing method comprising: receiving data from a portable consumer device at a reader, wherein the portable consumer device stores an issuer verification value associated with an issuer and verified using an online processing system in communication with the issuer, wherein the portable consumer device also stores a supplemental verification value, and wherein the data received from the portable consumer device includes the supplemental verification value, and wherein the supplemental verification value is verified using an offline processing system that is not in communication with the issuer; processing the supplemental verification value at the reader, wherein processing the supplemental verification value comprises identifying an appropriate key and algorithm, and further comprises calculating a value corresponding to the portable consumer device and comparing the calculated value to the supplemental verification value received from the portable consumer device; authorizing the transaction if the processing of the supplemental verification value indicates that the portable consumer device is authenticated; wherein the issuer verification value and the supplemental verification value are stored in a memory in the portable consumer device in separate data fields in a predetermined data field format comprising a magnetic stripe data (MSD) configuration such that the issuer verification value and the supplemental verification value are both readable by the reader, and wherein the reader comprises a transit system reader and the supplemental verification value comprises a transit verification value; and wherein the supplemental verification value is dynamically changed on the portable consumer device after issuance of the portable consumer device.