These cards are like a cross between a debit card and a credit card, sort of like a Visa/Mastercard debit. You can add money to these cards and use them like a credit card, whether that be online or in person.
What are the Best Prepaid Credit Card Options in Canada?
There are plenty of prepaid credit card options in Canada. Here are some of the most popular ones that offer the best benefits.
KOHO Prepaid Mastercard
The great thing about the KOHO prepaid card is that you can load as much money as you want, as often as you want, and there are no monthly or annual fees, depending on the account you choose. If you attempt to use your card and there are no funds on it, you won’t incur NSF fees as you would with a debit card. You’ll just receive a notification informing you that you have no funds in your account.
Putting money into your account is actually quite simple. You can set up automatic payments. They also offer incentives for using your card. You can earn cashback on all purchases. They also partner with some companies that will earn you more cashback than others.
This card is technically a debit card that doubles as a credit card. You earn cashback on your purchases and can buy things online without paying any interest. Plus, if you opt in for their credit-building services, you can increase your credit score at the same time. Very few prepaid cards offer this feature that regular credit cards do.
Neo Money Card
The Neo Money Card is different from other prepaid credit cards. It essentially acts as both a credit and a debit card, since you can withdraw cash with no fees. Not only can you earn cashback every time you use your card, but you can also earn interest on your savings. On top of that, there are no annual fees. Some of the unique features of this card include:
- No cap on cashback
- ATM withdrawals anywhere Mastercard is accepted
- Free everyday transactions
- No monthly fees
- Instant access to your balance
- No card loading is required
With the Neo app, you are able to track your spending and cashback. You can also automate your savings and receive e-transfer auto deposits. You can even set up auto payments on your bills.
Even though Neo isn’t a traditional financial institution, your money is still protected by the CDIC (Canada Deposit Insurance Corporation) insurance. This is because Concentra Bank, a CDIC member institution, provides the Neo Money Account.
EQ Bank Card
This is another prepaid card that is available to Canadians in every province. The EQ Bank Card is similar to the Neo Money Card in that it is both a bank account and a credit card. The features included with this card are:
- Cashback (0.5%) with every purchase
- No foreign exchange fees
- No monthly or annual fees
- No hidden fees
- Free withdrawals from any Canadian ATM
- Earn 2.5% on money in your account (until you spend)
For any ATM fees charged by other banks, you will be reimbursed by EQ Bank to your account. Unlike Neo, though, you do have to transfer money onto your card in order to be able to spend it. The great thing is, though, there are no minimum deposit amounts.
Your money is also protected by CDIC insurance with EQ Bank since EQ Bank is a trade name of Equitable Bank. Deposits made under either of these banks are eligible for CDIC protection up to $100,000. This is valid per insured category for a person. Since the card is a Mastercard, even though there are no foreign exchange fees, you do have to pay the Mastercard Currency Conversion rate.
Canada Post Cash Passport Mastercard
This prepaid credit card can be loaded with multiple currencies to make travelling easier. It’s also safer than carrying cash. The great thing about this card is its innovative technology, which always knows the correct currency to use. Because of this, you can take out one or more currencies at the same time. The currently accepted currencies are:
- Canadian Dollars
- US Dollars
- Euros
- British Pounds
- Japanese Yen
- Australian Dollars
- Mexican Pesos
The Canada Post Cash Passport Mastercard also has a feature that, if you try to pay and don’t have enough of that currency, it will take from another currency. This will prevent your transaction from being declined, but foreign exchange fees will still apply.
Because this prepaid card is also a Mastercard, it comes with fantastic features to help keep your money protected. You can reload online or at a post office. If you lose your card on a trip, you can get a new card or money transferred to you, and you get 24/7 global assistance from Mastercard.
Wealthsimple Cash Card
The Wealthsimple Cash Mastercard is another card that can be accepted online, in-store, or through an app. When you set up direct deposit to your account, you earn up to 2.25% interest on your entire Wealthsimple Cash balance. Your money is also held by a CDIC member institution, and up to $100,000 is protected.
This card is straightforward to set up. You just download the app and set up your account. From there, you can start spending your own money right away. You also earn 1% cashback in stock, crypto or cash on almost everything that you purchase. There are also no fees.
Like unsecured credit cards, you can use this card in other countries, and there are no foreign exchange fees. However, Mastercard charges a 1% currency conversion fee. If you decide to use cashback from your account, there are no ATM fees.
Wise Prepaid Card
One card that is great for foreign currencies is the Wise Card. With a Wise account, you don’t have to worry about exchange rate markups and high credit card fees. You don’t even have to use your local bank accounts to exchange your funds.
If you need money abroad, you can use a foreign ATM. You’ll only have a small fee after the first $350. Plus, while you will get a physical card, you can use Google Pay or Apple Pay right away with it. Just like other prepaid cards, you can load money whenever you want and use the card wherever Visa and Mastercard are accepted.
The Best Bank Prepaid Card
When it comes to the Big 5 banks, not all of them offer prepaid cards. Some of them only offer Visa Debit. The thing to remember, though, is that you don’t have to be a member of the bank to get the prepaid card. You only need an account to get a Visa Debit card. That said, the bank that does offer a prepaid card is BMO. Both of these cards have their incentives, but depending on what you need in a card, one might work for you better than the other.
Scotiabank Card
At one point, Scotiabank did offer a prepaid Visa gift card. They were active up until 2019. Now, Scotiabank just offers its Visa Debit card. This is just your regular bank account, but you can use the card to make online credit card purchases. It works not only for Canadian purchases but also for US ones. If you use your bank card in the US, it acts as a credit card. You don’t have to get a credit card just to shop in the US.
RBC Prepaid Visa Card
As of 2021, RBC stopped issuing prepaid Visa cards. They only have Visa Debit cards. The card works just like the ones at the other banks. The only fees are your monthly bank fees. Your Visa Debit card acts as a credit card and can be used internationally, not just domestically. It can also be used to set up pre-authorized payments.
BMO Prepaid Mastercard
The BMO Prepaid Mastercard is a little different from the other Mastercard prepaid cards we have discussed. That said, it is essentially a reloadable card that comes with all the same benefits as a traditional Mastercard. It is easy to load, either online or through the mobile banking app. You can use the card like a traditional credit card, and it can be used anywhere a Mastercard is accepted.
Like other prepaid Mastercards, this card has no interest on purchases or cash advances. There is an annual fee of $6.95, though. However, there is an extended warranty and purchase protection on things you purchase with the card. There is also zero liability protection if your card is fraudulently used, and alerts for every transaction so you can verify that you made all of the purchases.
TD Prepaid Visa
You may have heard of the TD Prepaid Visa or the TD Connect Reloadable Visa card, but as of October 15, 2021, it no longer exists. There is now the TD Visa Debit. How this works is pretty simple. Your standard bank card has a number, an expiration date, and a CVV that can be used as a credit card. There are no extra fees for this service. It comes standard with your bank account. The only fees are your standard bank account fees for your chequing or savings account.
What is the Best Card with No Fees?
When it comes to no-fee prepaid cards, there are quite a few options to choose from. Most of the cards from the Big 5 banks have no fees, but there are account fees that you have to pay. The other cards are all great choices, but if you have to pick the best, then it’s a toss-up between the Neo Money Card and the EQ Bank Card.
Both of these cards offer great rewards and many perks that traditional credit cards do not. The CDIC even protects your money. Both of these cards allow you to track your spending and make international purchases without foreign transaction fees.
The Best Reloadable Prepaid Credit Card
Reloadable prepaid cards are becoming quite popular. One of the best and most recommended is the KOHO Mastercard prepaid card. Not only is it reloadable, but it’s simple to use, and there are no NSF fees if you need more funds on your card. It’s simple to reload your card: you can set up automatic payments, and there is no minimum load amount.
Another great thing about this card is that it allows you to build your credit score through its credit-building program. You can do so without borrowing money, though. You can load funds, make bill payments, make Interac e-transfers, and do some online shopping, all without interest charges.
Since this prepaid product is different from the others, it also has more perks than most prepaid cards, even prepaid travel cards. It has unique security features, a budgeting tool, and even allows you to earn cashback on all purchases, including at grocery stores, gas stations, and even on bill payments. With this card, you can even make domestic ATM withdrawals. However, you may have to pay ATM withdrawal fees.
Since this card is reloadable, the cashback that you earn won’t be used as a statement credit; it will be deposited directly into your account. This makes KOHO one of the best fintech companies for prepaid cards on the Canadian market. However, there’s always a double-edged sword, and you will have to pay if you want the credit-building feature.
What is the Best Visa Gift Card?
If you are looking to use a credit card once or want to give money differently, a Visa Gift Card may be an option for you. That said, Visa gift cards are treated like cash and don’t have the same protections as a prepaid credit card. Depending on the gift card you purchase, it can be either digital or a hard copy.
Vanilla Prepaid Visa and Mastercard
Vanilla Prepaid Visa and Mastercard are more like gift cards than traditional prepaid credit cards. They can be purchased in predetermined amounts and are accepted everywhere. The funds on them never expire, and no PIN is needed.
These cards can be purchased for yourself or as a gift, but they do have some limitations. They aren’t returnable or refundable, and you can’t use them for cash advances. They also can’t be used for preauthorized payments. They also can’t be used to pay for pump gas purchases. Basically, these cards are meant to be used for online or in-person purchases.
The activation fees for each card will depend on whether it is a Visa or Mastercard card and on its denomination.
Mastercard
| Amount | Activation Fee |
| $25 | $3.95 |
| $50 | $4.95 |
| $60 (3 x $20) | $8.95 |
| $100 | $5.95 |
| $200 | $6.95 |
| 20-500 (variable load card) | $7.95 |
Visa
| Amount | Activation Fee |
| $25 | $3.95 |
| $50 | $4.95 |
| $75 | $5.50 |
| $150 | $6.50 |
| $200 | $7.50 |
| 20-500 (variable load card) | $7.95 |
Prepaid Amex Cards
Just like the Vanilla prepaid cards, you can purchase American Express prepaid cards. Unlike the Vanilla cards, though, you can’t purchase them in a store; you need to purchase them online. Once purchased, they should take only a few days to arrive. They are also available in predetermined denominations.
- $25
- $50
- $100
- $200
- $500
- $1,000
These cards have no monthly fees or activation fees. They can be used anywhere that American Express cards are accepted.
Simplii Financial Visa Gift Card
Simplii Financial is another financial institution that offers a prepaid Visa. Its prepaid card is different from the rest because it’s a Visa Gift Card instead of a prepaid credit card. It’s also digital, so it’s a great way to purchase a prepaid card online.
This card can be used online or in person using a digital wallet. Even though this Visa Card is very convenient and easy to use, it isn’t reloadable. The key features of this card are:
- Values from $25 to $250
- Can be sent through email
- No purchase fees
- No activation fees
- Works with Apple Pay, Google Pay, and Samsung Pay
- You are able to personalize it with a note
- You can purchase merchant-branded cards
- The funds don’t expire
To purchase a Simpli Financial Visa Gift Card, you first need to have a Simpli Financial account. That said, the person that you send it to doesn’t need to have one. There is even a gift card catalogue where you can choose a theme for the gift card.
If you decide to purchase a gift card, remember that this Visa gift card doesn’t offer the same level of security as a prepaid credit card. The CDIC doesn’t insure your funds.
Joker Prepaid Visa and Mastercard
Joker offers a wider variety of prepaid cards that you can purchase online. However, you can also purchase physical cards in denominations of $25 up to $500 at certain retailers. The card you purchase online will be emailed to you and can be added to your digital wallet.
The great thing about Joker is that it’s accepted anywhere that Visa and Mastercard are accepted. You can also earn 5% cashback from certain retailers, which will be added directly to your card.
An important thing to note about Joker cards is that they have a valid-through date on their physical card. This doesn’t mean your funds expire; however, it does mean you will need to replace the card when it expires. This doesn’t happen with digital cards.
Joker vs. Vanilla Prepaid Cards
While Joker and Vanilla both offer prepaid credit cards, each has its own features. With Vanilla, there’s no expiry on the funds; you get only a physical card, and you have to pay an activation fee. The card is also one-time use, so once it’s been used, you have to throw it away.
With Joker, you can purchase the card online and access it via a digital wallet. You can also earn cashback with Joker, which is something Vanilla doesn’t offer. Joker also needs a card replacement once you reach the valid-through date, but it does not remove the funds.
With both of these cards, there’s the potential for unauthorized use. If this happens, then you need to report it right away. No matter which one you choose, though, they’re both considered some of the best prepaid cards, so they can allow you to make purchases wherever Visa and Mastercard are accepted.
What are the Best Prepaid Cards for Teens and Students?
If you’re looking for a prepaid card that works best for students and teens, there are two that are highly recommended. These are the Mydoh Smart Cash Card and the Wealthsimple Kids and Teens Cash Card.
The Mydoh Smart Cash Card is a reloadable prepaid Visa card that is managed through a parent/guardian app. There is no monthly fee, and it includes some features that parents like,e including:
- Setting spending limits
- Settings for locking and unlocking the card
- Tracking for chores and allowances
The Wealthsimple Kids and Teens Cash Card works in a similar way. It’s also a Visa prepaid card and has no monthly fee. There is also a prepaid parent app that allows you to set spending limits and block categories. It’s available everywhere in Canada except for Quebec.
What are the Best Prepaid Cards for Newcomers to Canada?
Prepaid cards in Canada are a great option for newcomers to manage everyday spending. They’re ideal because they don’t require a credit check, income verification, or a long credit history.
EQ Bank Card: As one of the best prepaid credit cards in Canada, it’s really a great option for anyone. However, it’s also great for newcomers to Canada because there are no foreign transaction fees (FX fees) on both purchases and international ATM withdrawals. It also allows you to earn interest on your balance.
KOHO Essential Mastercard: The KOHO Essential Mastercard is a great option because they offer tools for building credit. This can help newcomers establish a credit score in Canada while earning rewards. You can also get the KOHO Everything Mastercard and the KOHO Extra Mastercard, depending on the account that you choose.
Wealthsimple Cash Prepaid Mastercard: This option offers no annual fees, no FX fees, and you earn rewards on your balance.
How Pre-Authorized Holds Impact Your Prepaid Balance
When there is a pre-authorized hold on your card, it freezes a portion of your balance in order to ensure that you can make the payment. Even though the funds aren’t actually deducted, they are blocked from being spent anywhere else.
The main risk of a temporary hold on your card is not having enough of a balance to make all of your purchases. Even if your posted balance shows you have enough money, you could not if you have any holds.
Can You Pay Bills With a Prepaid Card?
While both reloadable and non-reloadable cards can be used on the payment network, reloadable network-branded cards are the best option for paying your bills. Non-reloadable gift cards aren’t usually accepted by corporate billing systems.
What You Should Look for in a Prepaid Card Agreement
When looking at different types of prepaid cards, it’s important to pay attention to the cardholder agreement. In this agreement, there are a few things that you should pay attention to.
Fees: You want to pay attention to fees for ATM access and cash withdrawals, foreign currency fees, and balance inquiry fees.
Reloadable vs. Non-Reloadable: Whether you have a physical card or a virtual card, you want to verify whether or not you can add more money to the card. It’s also important to see if you can set up recurring direct deposits or set up pre-authorized debits.
Policies for Lost or Stolen Cards: It’s important to look at the policies for reporting lost or stolen cards, as well as unauthorized transactions.
Some important things to note about prepaid cards are that issuers must provide you with 30 days’ written notice before they can increase any fees. It’s also important to note that where your prepaid card is held matters. If it’s with regulated financial institutions, then your deposits are covered by the CDIC.
How Do You Check Your Balance on a Prepaid Card?
How to check your balance on your prepaid card really just depends on the card issuer. Some allow you to check the balance online, while others require you to call. For cards that are reloadable, you can normally check your balance online.
Cancelling a Prepaid Card and Getting Your Money Back
Usually, depending on the issuer, it’s not possible to cancel your prepaid card and cash out your balance. The Financial Consumer Agency of Canada recommends that you spend the funds instead. If you are able to get a refund, issuers will likely charge a fee for the refund. The funds themselves on the card, though, never expire.
What Are You Unable to Use a Prepaid Card For?
Prepaid credit cards can be great for a number of reasons, including earning interest on balances, avoiding cash advance fees on free ATM withdrawals, making recurring payments like subscription fees, and being able to make multi-currency purchases. However, there are some situations where a prepaid card isn’t accepted. These include:
- Car Rentals
- Hotel Check-ins
- Flight Bookings
- Security Deposits
- Money Orders
Rights Under Federal Regulations for Prepaid Cards
Federally regulated prepaid cards in Canada are governed by the Prepaid Payment Products Regulations. They dictate that:
- Funds on prepaid cards don’t expire
- There are restrictions on maintenance fees
- A written notice must be provided for fee increases
- Overdraft charges and interest charges can’t be applied without consent
They don’t dictate a company’s specific fraud protections, whether or not they allow 40+ currencies, or the withdrawal limits.
How Promotional Prepaid Cards Work
Promotional prepaid cards are issued by businesses, employers, or even organizations as part of loyalty, rebate, incentive or rewards programs. These cards are non-reloadable and can’t be used to make cash withdrawals. These are not prepaid build-credit cards and often have an expiry date. They also don’t show up on your credit report.
How to Choose the Best Prepaid Cards
When you’re deciding between some of the best prepaid cards like the Wealthsimple Prepaid Mastercard, it’s important to pay attention to the features that they offer. Some are bank accounts that allow you to have spending and savings accounts, allow for unlimited transactions, and even earn different reward rates. Many work like traditional bank accounts and can be used for everyday transactions, including paying at the pump.
