If you’re sick and tired of carrying a chunky wallet or purse with you everywhere you go, a virtual debit card might be just what you need. Available through your smartphone, a virtual card makes it easy to make purchases online and using your phone, and it means you don’t have to carry a physical card.
In this guide, we’ve chosen the 5 best virtual debit cards in Canada to help you find the best digital card for all your spending needs. We also provide information on how virtual debit cards work, their pros and cons, and how to find the right card for you.
To determine this best list, Finder Canada analyzed 17 virtual debit cards across 14 financial institutions. We compared cards from traditional banks, digital banks, fintechs and credit unions. We narrowed down the list of cards to the top 5 by only listing debit cards that are available in all Canadian provinces.
We ranked cards based on 18 data points within five major categories. Here’s how we ranked and weighted each product:
the Wealthsimple Cash account offers a linked virtual debit card. Perks include earning 4.00% to 5.00% interest (depending on how much money you hold in your account), being able to access your pay a day early, CDIC deposit insurance of up to $500,000, and the ability to earn 1% cashback in stock, crypto or cash when you make a purchase with your card.. And if you want to invest your savings, you can trade stocks, ETFs, options and more through your other Wealthsimple accounts.
The EQ Personal Account works as a hybrid chequing and savings account and comes with a prepaid card (that you can use virtually via your phone). You'll earn 2.50% - 4.00% interest with an EQ Bank Personal Account. Enjoy zero everyday banking fees, free transactions and no minimum balance requirements. Plus, you can also apply for a Joint account if you're looking to save with your partner or family.
$0 account fee
$0 transactions
$0 Interac eTransfers
Earn 2.50% - 4.00% interest on your balance
No physical branches for in-person service
Some standard banking features not available such as overdraft protection, use of ATMs and the option to have paper statements
Link the RBC Virtual Debit Card to any of your RBC chequing accounts and shop online anywhere Visa is accepted. You can spend using the funds directly from your bank account. One of the best features of the RBC Virtual Debit Card is that you can instantly activate the card online and use it immediately.
Instantly activate the card online
Link to any RBC chequing account
Free to receive the card
You'll need to be an RBC customer with an active chequing account
Min. Age
18
Account Fee
$0
Best virtual debit card for holding multiple currencies
Spend online, in-store and overseas while saving on currency conversion fees with the Wise Virtual Debit Card. Hold 40+ currencies at once in your Wise Personal Account and convert the currencies in real time via the Wise app. This virtual card supports both Apple Pay and Google Pay.
Hold multiple currencies
Have up to 3 virtual cards at one time
Card is free to all Wise customers
You'll need to get a physical Wise card before you order your virtual one
KOHO Essential Prepaid Card is one of four 'plans' you can choose with KOHO. You'll receive a prepaid card, which you can use virtually when you link it to your phone. Earn 1% cashback on groceries, transportation, and eating & drinking. Plus, earn 5% interest on your entire balance. Enjoy a free 30-day trial.
Earn 1% cash back on groceries, transportation, food, and drink – and collect 0.25% on everything else.
Earn 5% interest on your entire balance.
Free 30 day trial
This plan has a fee of $0-4/month or $48 annually, however there is a free, basic plan available
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
1.5%
Monthly Fee
$0-4/month or $48 annually
e-Transfer Fee
$0
NSF Fee
$0
Rewards
Up to 1% cash back
What is a virtual debit card?
A virtual debit card is just like a physical debit card, but with the key difference that it’s available digitally through your smartphone or wearable device. You can use your virtual card to pay for purchases online or tap your smartphone wherever contactless payments are accepted. And just like a physical card, a virtual card is linked to your bank account — so you’re spending your own money rather than accessing credit.
How do virtual debit cards work?
You can use your virtual debit card in essentially the same way you use your physical card. If you’re shopping online, you simply enter your card details at checkout to pay for your purchase. And if you add your card to a mobile wallet, such as Apple Pay or Google Pay, you can use your smartphone to make contactless purchases when shopping in-store.
Your virtual debit card has different details to your physical card — your card number, expiry date and CVV are all different. Cards are encrypted to protect you against fraud, and your financial institution can send your virtual card details to you instantly once you’ve successfully created an account.
You also have the ability to freeze or cancel your virtual card whenever you want, and you can generate new virtual card details when needed.
How can I use a virtual debit card internationally?
It’s easy to use a virtual debit card internationally. When you’re shopping online, you can use your virtual card to make purchases from international retailers in the same way you would use a physical debit or credit card. If you’re shopping in-store, tap your phone at the payment terminal wherever your card’s payment network (such as Visa or Mastercard) is accepted.
If your card is linked to a multi-currency account, you can pay using the local currency and avoid expensive currency exchange costs.
However, be aware that some virtual debit cards will come with hefty foreign transaction fees, such as 3% per transaction. So if you plan to regularly use your virtual debit card to make purchases internationally, look for a card with no foreign transaction fees.
The other factor you’ll need to consider is currency conversion costs. Make sure you check the exchange rate markup that will apply when you exchange Canadian dollars for a foreign currency, as this can have a big impact on the cost of your transaction.
What are the benefits of a virtual debit card?
There are several reasons why a virtual debit card makes sense:
No need to carry a physical card. Tired of carrying a bulky wallet or purse around with you everywhere you go? A virtual debit card lets you pay with your phone instead, so you can leave your wallet at home.
Easy to pay for online purchases. It’s quick and easy to check out online with a virtual debit card, with no need to manually enter all your card details every time you pay.
Added security. You don’t have to worry about losing your virtual debit card or having it stolen. It’s also simple to freeze your virtual debit card or cancel it altogether after making a purchase. This provides an extra layer of security if you’re buying from a store you haven’t used before and you want to protect your card details against fraud.
Access multiple currencies. Providers such as Wise offer virtual debit cards linked to multi-currency accounts, allowing you to hold and spend funds in dozens of currencies. This means you can avoid expensive currency conversion costs when making international purchases.
Instant access. Rather than waiting for your bank to mail out a physical card, you can start using a virtual debit card straight away after opening an account.
Manage your finances. If your account supports multiple virtual cards, you can create different cards for different needs or expenses, each with its own spending limit. This can make it easier to manage your money and keep track of your expenses.
What to be aware of with virtual debit cards
There are a few potential drawbacks to be aware of before using a virtual card:
Card/account fee. Some accounts may come with a monthly fee or may charge a fee for issuing a virtual card. Check the fine print for details of any fees that will apply.
Wallet compatibility. Make sure the virtual debit card you choose is compatible with your mobile wallet of choice, such as Apple Pay, Google Pay or Garmin Pay.
Can’t be used at ATMs. Virtual debit cards can’t be used to withdraw cash from an ATM, and they can’t be used to pay for purchases from retailers that don’t support contactless payments. If you regularly need to withdraw cash, you’ll also need a physical debit card linked to your account.
Card limits. Some virtual debit cards come with limits on the amount you can spend per day. Exceeding this limit may result in extra fees, so make sure you’re aware of any daily or monthly limits that apply.
Foreign transaction fee. If you plan on using your card to make purchases internationally, check the fine print for the card’s foreign transaction fee.
Bottom line
The best virtual debit cards offer a secure and convenient way to pay for online and in-store purchases. But card fees and limits apply, so it’s important to shop around before choosing a card. Compare virtual debit cards and their accounts to find one that’s right for you.
Frequently asked questions
The exact steps you'll need to follow to get a virtual debit card vary depending on the provider. However, as a general rule you will need to sign up for an account by providing your personal information and contact details along with proof of ID. This can typically be done online, but some traditional providers like banks may require you to visit a branch. Once your application has been accepted and your account opened, you'll typically receive your virtual card details instantly.
It depends on the financial institution you choose. Some providers charge a fee for issuing a virtual card but others don't, while some cards may be linked to an account that comes with a monthly fee. Check the fee schedule for an account closely before you apply.
Yes, virtual debit cards are safe to use. They can't be stolen or lost in the same way physical cards can, and you can freeze your card instantly to protect against fraud. A virtual debit card also has different details to your physical card, which means your real card details are kept safe, and you can also set card spending limits to offer extra protection if your card info somehow falls into the wrong hands.
This is typically easy to do via your financial institution's online banking or mobile banking app. The exact steps you'll need to follow will vary depending on the provider.
The wallets your virtual debit card is compatible with will vary depending on the financial institution you choose, so check the list of compatible wallets before signing up for an account. Some popular options include Apple Pay, Google Pay, Samsung Pay, FitBit Pay and Garmin Pay. Check out our guide to digital wallets in Canada for more information.
No, you typically cannot use a virtual debit card to withdraw cash from an ATM. If you need to access cash in your account, you'll need to use a physical debit card linked to the account.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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