Abstract: A system for authorizing and facilitating payment transactions utilizing a payment device, a merchant terminal, and a payment server. The payment server generates unique, single-use payment credentials and provides the payment credentials to the payment device, which transfers the payment credentials to the merchant terminal. The merchant terminal submits the payment credentials and transaction request to the payment server, which facilitates the transfer of funds between the consumer and the merchant upon validation of the payment credentials. In an alternate use of the system, the payment device requests to open a running bill of charges with the merchant terminal. The payment device or the merchant terminal requests the payment server to close out the bill and finalize the charges. The payment server facilitates the transfer of funds between the consumer and the merchant. The payment server provides automated and manual accounting functions to both the consumer and merchant.