The invention is directed to systems and methods of conducting transactions associated with a transit card. A method of conducting transactions may be conducted between a processor and a transit processor. Steps may include receiving a redemption request and determining if it is a pre-authorization request or a redemption; if the redemption request is a pre-authorization request, determining if the account is authorized for a particular transit type. If the account is authorized, communicating approval to the transit processor. If the account is not authorized communicating denial. If the redemption request is a redemption: determining if account value is sufficient to pay the redemption amount; if not, denying and if so approving the transaction and deducting the amount, and determining if the account value is below a pre-determined threshold for a particular transit types, and if so, updating the status of the account at a data store.