Transaction system with off-line risk assessment

A system wherein an issuer of transaction cards can influence the type of transactions that can be approved at the point of transaction, said system comprising:

• primary processor means including a file means containing cardholder information, supplied by the issuer, for evaluating a transaction;
• a transaction card carrying data identifying the cardholder, said card further including nonmonetary data supplied by the issuer and representative of risk assessment information associated with the cardholder;
• and
• remote terminal means located at the point of transaction and connected to said primary processor means, said terminal means having monetary data stored therein, said terminal means having a means for reading the data carried on said card and a means for entering the amount of the transaction, said terminal means further including a remote processor means for deriving a transaction dollar limit based on the risk assessment information carried on said card and the monetary data stored in the terminal means, with said remote processor means comparing the transaction amount and the derived transaction dollar limit to determine if the transaction can be approved locally at the terminal or should be forwarded to the primary processor for further evaluation.