A transaction card is disclosed capable of authorizing a transaction in a foreign currency. The subject transaction card includes an internal microprocessor which is connected to a memory. Stored within the memory is a transaction limit associated with each account of the cardholder. Also stored in the memory are one or more rates for converting the transaction limit into foreign currencies. In operation, the cardholder will select the foreign currency which will be used for a purchase. After the selection, the processor will convert the transaction limit from a local or base currency to the selected foreign country. Thereafter, during the transaction, the processor will compare the transaction amount with the converted transaction limit to determine if an approval code should be generated. In a preferred embodiment, a key pad is provided on the transaction card to facilitate data entry. In addition, an LCD readout is provided for displaying the approval code.