An optical security system having a key, an optic lock, and a processing system. The lock generally has a plurality of optic reflective sensors, a plurality of readable discs, and a controller for processing information to and from the plurality of sensors. The optic security lock senses the surface changes of state during the rotation of the plurality of discs caused by the turning of the fully-engaged key. The data from the sensors is communicated to the controller, with the controller having a processor capable of processing data from the sensors. The processing system analyzes the data from the controller and compares the data to known information in a database for generating a lock command signal. The optic lock can further include input device for inputting transaction data to facilitate consumer purchasing transactions, security transactions, verification transaction, credit card transactions, and the like.