KOHO Easy Prepaid Mastercard

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Prepaid credit cards function just like regular credit cards with one important difference. You won’t get access to credit, which means you’ll need to load money onto your prepaid card from your bank account in order to spend it.
Find out more about how prepaid cards work, compare your options to find the best fit for your unique set of needs and budget and see a list of prepaid credit cards to choose from.
A prepaid credit card function just like credit cards in almost every way. The only difference is that you won’t get access to actual credit. Instead, you’ll need to load your prepaid credit card up with money from your bank account to make purchases. This allows you to avoid paying interest and keeps you from getting sucked into a cycle of debt that can be difficult to get out of.
Many let you earn rewards and some may even come with additional benefits such as purchase protection or extended warranty insurance. These cards can be a good fit for customers with bad credit, students or those who are having trouble qualifying for a regular credit card. They can also be a good option for customers who want to shop on a budget or set spending limits for their children or employees.
Prepaid cards are similar to debit or credit cards and can be used to make online and in-person cashless purchases. However, unlike a bank debit card that’s linked to a chequing account, a prepaid card comes with a pre-set balance that acts as a spending limit. Once you reach the limit, the prepaid card becomes unusable until more money is added to the card. Though pre-paid cards are often referred to as prepaid credit cards, they are not the same as traditional credit cards since the payments made and the account history are not used to build a credit history.
There are a couple of main differences between a prepaid credit card and a debit cards:
There are several types of cards you can choose from depending on what you want to use them for. These include the following:
Aside from the number of different prepaid credit cards you can qualify for, you’ll have your choice of getting a prepaid Mastercard or a prepaid Visa card. There’s very little difference between these types of pre-paid cards. The only time you would want to choose a specific prepaid Visa or prepaid Mastercard is if you shop regularly with a vendor that’s exclusive to one type of card. For example, Costco shoppers can only use Mastercard to pay for their purchases at Costco.
You can sign up for a prepaid credit card with several providers. These include big banks, digital banks and private companies. It’s easy to compare the prepaid cards offered fby different providers by expanding the links below:
The Big Five banks offer a number of prepaid credit cards to choose from. These prepaid credit cards tend to come without rewards or benefits.
Provider | Card | Rewards/Benefits | Annual fee |
---|---|---|---|
BMO | BMO Prepaid Travel Mastercard | 15-20% off admission to Cirque du Soleil | $6.95 |
CIBC | CIBC AC Conversion Prepaid Travel Card | No benefits (but AC Conversion Card lets you load up to 10 currencies) | No annual fee |
TD | TD Connect Reloadable Prepaid Card | No benefits | $5.99 per month ($71.88 per year) |
RBC and Scotiabank don’t seem to have dedicated prepaid cards except for business use. |
Smaller banks offer mostly secured cards, which let you prepay your balance to build up your credit. Examples include the following:
Provider | Card | Rewards/Benefits | Annual fee |
---|---|---|---|
Rogers bank | chatr prepaid Mastercard (secured) | 0.5% cashback on all purchases and builds your credit | $5 monthly fee ($60 per year) |
Capital One | Capital One prepaid Mastercard (secured) | Builds your credit | $59 |
Vancity | enviro Visa Reloadable Prepaid card (not secured) | Extended warranty and purchase protection | $14.95 to purchase ($4.95 per month but free for members) |
Digital banks tend to stay out of the credit card space for the most part. That said, there are a handful of prepaid cards by digital banks that are worth looking into:
Provider | Card | Rewards/Benefits | Annual fee | |
---|---|---|---|---|
KOHO | KOHO Easy Prepaid Mastercard | 0.5% cashback on all purchases | $0 | |
STACK | Stack Prepaid Mastercard | No foreign exchange fees, cashback and discounts at select retailers | $0 | |
Mogo | Mogo Visa Platinum Prepaid Card | Carbon offset rewards, spending insights | $0 |
If you tend to shop regularly at the same stores, you might want to check out these loyalty-brand prepaid credit card options:
Provider | Card | Rewards/Benefits | Annual fee |
---|---|---|---|
PC Financial | PC Financial Prepaid Credit Card | Earn 5 points per dollar spent, low introductory balance transfer rate | $0 |
Canada Post | Canada Post Prepaid Visa or Prepaid Mastercard | Shop in foreign currencies | $15 to purchase, $3 to reload plus transaction fees |
American Express | American Express Serve Cash Back | Earn 1% cashback on purchases | $7.95 per month plus $3.95 to reload |
You can compare a number of features to find the best prepaid credit card for you:
You can follow these steps to apply for a reloadable prepaid credit card:
You can also purchase non-reloadable prepaid credit cards and gift cards at grocery stores and with other eligible vendors. These cards aren’t personalized and you can typically load a balance at the till without needing to fill in an application.
Prepaid credit cards come with a number of benefits that make them a viable option:
There are also a couple of drawbacks to consider before you sign up for a prepaid credit card:
Getting a prepaid credit card is a good option if you want the benefits of a credit card without the worry. These cards can be a particularly good fit if you don’t want to pay interest or you’d like to avoid overspending on your account. Find out more about how prepaid credit cards work and compare prepaid credit cards to find the best fit for your unique personal situation.
Yes. You'll usually be able to qualify for a prepaid credit card with bad credit. This is because you can easily load money into your account and you won't have to rely on borrowing money from your provider with these cards.
Not usually. The only time a prepaid credit card will help you build your credit is if it's labelled as a "secured credit card." This means you secure the balance you want to borrow with an amount of money that you prepay to your provider. When you pay off your credit card in full and you're ready to close your account, this money gets returned to you.
With certain cards, yes. Many prepaid credit cards offer rewards such as points or cashback when you spend money. The only caveat is that the return on rewards that you get will often be lower than what you might receive from a traditional credit card.
It depends on the type of prepaid card you want. If you're looking for a reloadable, secured or business prepaid card, you can usually apply with big banks, digital banks and select private companies. If you just want to buy non-personalized gift cards to load money onto, you can find them at most major grocery stores and with multiple other eligible vendors.
Click on a prepaid credit card provider name to compare offerings.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
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