Abstract: An architecture and system uses a smart card for payment of goods and/or services purchased on-line over the Internet. A client server on a client terminal controls the interaction with a consumer and interfaces to a card reader which accepts the consumer's smart card. A payment server on the Internet includes a computer and terminals that contain security cards to handle the transaction, data store and collection. Also connected over the Internet is a merchant server advertising the goods and/or services offered by a merchant for sale on a web site. The merchant contracts with an acquirer to accept smart card payments for goods and/or services purchased over the Internet. A consumer uses his smart card at the client terminal in order to purchase goods and/or services from the remote merchant server. The Internet provides the routing functionality between the client terminal, merchant server and payment server.