A method for processing transactions within a token transfer device, such as a smartphone or other portable electronic device. The method includes storing a transaction token having a specified transaction resource value and an associated validation parameter in the memory of the token transfer device. A transaction communication interface initiates a transaction service with a token recipient terminal and invokes a token state manager. The token state manager determines an event corresponding to the specified validation parameter by determining a transaction resource network connect activity status and by determining condition register data associated with the validation parameter. The token state manager then issues a transaction modification call based on the determined event and the validation parameter.