A transaction card is disclosed having a magnetic stripe emulator. The transaction card is adapted for use with presently available transaction terminals that include a sensor for reading a magnetic stripe. The subject card includes a transducer for generating a varying magnetic field corresponding to information typically encoded on a magnetic stripe. In operation, a microprocessor in the card extracts transaction data stored in a memory and supplies output signals to the transducer. The transducer generates a varying magnetic field corresponding to the transaction information which is read by the sensor in the transaction terminal.