Apparatus and method for secure transactions between gaming machines and portable devices are described. The secure transactions may include a transfer of an amount of an indicia of credit with a cash value from the portable device to the gaming machine or a transfer of an amount of an indicia of credit with a cash value from the gaming machine to the portable device. A logic device, separate from a master gaming controller on the gaming machine and placed in the gaming machine, may be operable to authenticate a portable device, such as a smart card, and authorize transactions involving transfers of indicia of credit between the portable device and the gaming machine. The logic device may be operable to send authentication information relating to the portable device to a remote host where a value amount of transactions involving the portable device authorized by the logic device may be higher when the logic device and the remote host authenticate the portable device as opposed to when the portable is only authenticated by the logic device.