Abstract: A multi-application payment system and method operates in a hybrid closed/open manner. The multi-application payment system and method features a smart card wherein funds are added to the card at point of sale (POS) locations. The card keeps track of the available balance and is used to purchase goods/services at any POS location. During a transaction, the POS location verifies the amount of funds available and then debits the funds available on the card. Transactions between the card and the POS location are preformed in a substantially closed manner. The POS location then transfers data about the transaction (preferably in a batch manner) to a central processing system. The central processing system processes the data in a generally open manner to move funds to the appropriate account, preferably using the Federal ACH interface.