Methods for risk management in payment-enabled mobile device

A payment-enabled mobile device, comprising:

• at least one mobile device processor comprising a non-volatile memory storing a first counter and an associated first accumulator used for financial risk management purposes prescribed by an issuer of a payment card account, and storing a second counter and an associated second accumulator used for enforcing a cardholder verification requirement, and storing a payment application program;
• an antenna;
• and
• a transceiver coupled to the antenna and operably coupled to the at least one mobile device processor, the transceiver controlled by the at least one mobile device processor running the payment application program;
• wherein the payment application program includes instructions configured by the issuer of the cardholder's payment card account that causes the mobile device processor to:
• detect when the payment-enabled mobile device is tapped on a reader to initiate a current purchase transaction;
• determine that the current purchase transaction includes currency other than a home currency;
• prompt a user of the payment-enabled mobile device to perform at least one cardholder verification method (CVM);
• determine that the CVM is valid;
• determine that available stored prepaid funds are adequate for the current transaction based on a current value of at least one of the first accumulator and the first counter;
• determine that a current value of the second counter and the second accumulator is below a lost and stolen risk management limit;
• reset the second counter and the second accumulator;
• detect that the mobile device has again been tapped on the reader by the user;
• and
• consummate the transaction.