A prepaid card lets you make purchases in-store and online just like you can with a normal credit card. But instead of accessing credit, you load your own money onto the card before you start spending.
A prepaid card offers a convenient way to shop without getting into debt, and without hurting your credit score. And if you’re looking for the best prepaid credit card in Canada, we’ve compared a host of cards from big banks and digital banks to help you find the card that’s right for you.
Best prepaid credit card in Canada
Best Reloadable Prepaid Credit Card in Canada: Neo Money Card
Best No Fee Prepaid Card with No Foreign Exchange Fees: EQ Bank Card
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Best Reloadable Prepaid Credit Card in Canada: Neo Money Card
If you're searching for a reloadable prepaid credit card that offers great value, it's hard to go past the Neo Money Card. You can use this card everywhere Mastercard is accepted, and there are no monthly fees or everyday transaction fees to worry about. You also get a virtual card so you can start shopping online straight away, and you get an average of at over 10,000 retail partners in Neo Financial's network. There's also no monthly limit on the amount of cash back you can earn, and with the ability to earn 5% interest on every dollar in your Neo Money account, this is a card with a lot to offer to a lot of people.
Hybrid account that works like a chequing and savings account
High ongoing interest rate
$0 unlimited transactions
$0 Interac e-Transfer
$0 account fee
Online only with no physical branches
Doesn't come with a debit card, though does come with the Neo Money Card
With no annual or monthly fees and a wide range of other perks, the EQ Bank Card is an affordable option to use in Canada and internationally. There are no foreign transaction, FX or international ATM withdrawal fees charged by EQ Bank, so it's a card that's easy to take with you when you travel. You also earn 0.5% cashback on domestic and international purchases, plus get free withdrawals at any ATM in Canada (EQ Bank refunds you if another ATM operator charges a fee). Earn 4.00% for 12 months when you set up $500/month or more in direct deposit for your pay (this applies to your EQ Personal Account, Joint Account and EQ Bank Card balance). Conditions apply. Thereafter, you'll earn 2.50% on your balance.
No annual or monthly fees
No foreign transaction or FX fees
No international ATM withdrawal fees charged by EQ
Earn cashback
It's a prepaid card so your payments are not reported to the credit bureaus
Not available in Quebec
Funds can only be loaded from an EQ Savings Account
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
0%
Monthly Fee
$0
Rewards
0.5% cash back
Best Multicurrency Prepaid Card: CIBC AC Conversion Visa Prepaid Card
Looking for a card that supports multiple currencies? The AC Conversion Visa Prepaid Card from CIBC lets you hold 10 currencies for over 40 countries, allowing you to shop online or in person at foreign retailers with ease. Supported currencies are CAD, USD, EUR, GBP, AUD, JPY, HKD, TRY, CHF and MXN, and there's no annual fee or fee for loading funds onto your card. It's easy to reload via the AC Conversion app, and you don't need to be a CIBC customer to qualify for this card.
Hold up to 10 currencies
Supports over 40 countries
$0 annual fee or fee for loading funds onto your card
Don't need to be a CIBC customer
You'll have to pay exchange rates to transfer your money between currencies
You'll pay international ATM withdrawal fees
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
0%
Monthly Fee
$0
Rewards
1% cash back
Best Cash Back Prepaid Credit Card in Canada: Neo Financial Money Card
If you're searching for the best prepaid credit card in Canada to help you earn maximum rewards, the Neo Money Card is our top pick. Neo Financial says you can use the card to earn an average of 5% cash back when you shop at over 10,000 partner retailers across the country. Even better, you don't have to worry about monthly caps on how much cash back you can earn. There are no monthly or annual fees to pay either, and you can access your balance straight away without any need to load funds onto your card. And with the Neo Money Account paying interest at a rate of 5%, you can build a bigger savings balance at the same time.
Hybrid account that works like a chequing and savings account
High ongoing interest rate
Unlimited transactions for $0
Interac e-Transfer cost $0
$0 account fee
Online only with no physical branches
Doesn't come with a debit card, though does come with the Neo Money Card
Not available to residents of Quebec
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
International ATM Fee
$0
Best No ATM Fees Prepaid Credit Card in Canada: EQ Bank Card
Hate paying ATM fees that chip away at your balance? The EQ Bank Card might just be the best prepaid credit card for you. This card comes with no ATM fees on withdrawals from any ATM in Canada — if an ATM provider charges you a fee, EQ Bank refunds it within 10 business days. EQ Bank also won't charge you if you withdraw cash at an international ATM, but there's no refund available for any other charges your international withdrawal incurs. Other card features include no monthly and annual or foreign transaction fees. Earn 4.00% for 12 months when you set up $500/month or more in direct deposit for your pay (this applies to your EQ Personal Account, Joint Account and EQ Bank Card balance). Conditions apply. Thereafter, you'll earn 2.50% on your balance.
No annual or monthly fees
0% foreign transaction or FX fees
$0 international ATM withdrawal fees charged by EQ
Earn cashback
It's a prepaid card so your payments are not reported to the credit bureaus
Not available in Quebec
Funds can only be loaded from an EQ Savings Account
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
0%
Monthly Fee
$0
Rewards
0.5% cash back
Best Prepaid Card with Extra Cash Back: KOHO Extra Prepaid Mastercard
If you want a card that lets you earn maximum rewards, we think the KOHO Extra is the best prepaid credit card in Canada for you. While a regular KOHO account allows you to earn 1.5% cash back return on special categories such as transportation, groceries and restaurants, and 0.25% cash back on all other purchases. Cash back is paid instantly, while KOHO Extra also allows you to earn 5% interest on your entire balance. Throw in other perks like no foreign exchange fees and access to Credit Building at $7 per month, instead of $10 per month, and it's clear that there's plenty to like about this card.
Earn cashback on your spending
0% foreign exchange fees
Access credit building
Monthly fee of $9 or annual fee of $84
Monthly Fee
$9
Transaction Cost
$0
Foreign Transaction Fee
0%
Monthly Fee
$9/month or $84 annually
e-Transfer Fee
$0
NSF Fee
$0
Rewards
Up to 5% cash back
Best Prepaid Card with Interest on Balance: EQ Bank Card
If you're looking for a prepaid card that can help you build a bigger savings balance, the EQ Bank Card is our top pick. This popular prepaid card allows you to earn the same rate of interest on your card balance as you can with money deposited into your EQ Bank Savings Plus Account. Earn 4.00% for 12 months when you set up $500/month or more in direct deposit for your pay (this applies to your EQ Personal Account, Joint Account and EQ Bank Card balance). Conditions apply. Thereafter, you'll earn 2.50% on your balance.. It's got plenty of other perks too, with a $0 monthly or annual fees to eat away at your bank balance and no foreign transaction or ATM withdrawal fees. Plus, you earn 0.5% cashback on every purchase, which means additional rewards while building towards your savings goals.
No annual or monthly fees
0% foreign transaction or FX fees
International ATM withdrawal fee of $0
Earn cashback
It's a prepaid card so your payments are not reported to the credit bureaus
Not available in Quebec
Funds can only be loaded from an EQ Savings Account
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
0%
Monthly Fee
$0
Rewards
0.5% cash back
Best Travel Rewards Prepaid Credit Card in Canada: KOHO Travel Mastercard
Both the KOHO Extra plan ($9/month) and KOHO Everything ($19/month) plan offer a range of benefits designed to make them effective for international use. With no foreign transaction fees and unlimited real-time e-Transfers, you can use your card overseas without fees eating into your balance. You can also earn 5% interest on your entire balance, and earn extra cash back on Booking.com purchases. Other perks include 2% cash back on groceries, bills and services, and food and drink, along with 0.5% cash back on all other purchases, making using a KOHO Travel Mastercard a very rewarding experience indeed.
Earn 0.5% to 5% cashback
No foreign transactions fees
Unlimited e-Transfers
Earn 5% interest on your balance
Monthly fee for the Extra plan is $9/month or the Everything plan is $19/month
Monthly Fee
$19
Transaction Cost
N/A
Foreign Transaction Fee
Rewards
Up to 5% cash back
Best Big 5 Bank Prepaid Mastercard: BMO Prepaid Mastercard
Prefer to deal with a big bank? We recommend checking out the BMO Prepaid Mastercard. This card comes with a low annual fee of $6.95 with no monthly charge and is easy to load via BMO online or mobile banking. It's usage flexibility makes it ideal for those who travel throughout North America because the BMO Prepaid Mastercard can be used at more than 30 million ATMs and point-of-sale locations in Canada, the US and around the world. Plus additional security features, like Mastercard's Zero Liability protection along with BMO alerts to confirm your transactions, make this prepaid card a safe, reliable travelling companion and an ideal prepaid Mastercard.
Low annual fee
Worldwide access
Access to a host of security features
No interest rate charge for purchases or cash advances
You won't earn any rewards on purchases
No interest earned on your balance
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
2.5%
Monthly Fee
$6.95 annually
Rewards
N/A
Largest Account Balance Prepaid Card in Canada: Wealthsimple Cash Card
If you want a prepaid card that gives you access to a large balance to spend, there's a lot to like about the Wealthsimple Cash Card. This prepaid Mastercard is paired with a Wealthsimple Cash account. 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 $300,000, and the ability to earn 1% cashback in stock, crypto or cash when you make a purchase with your card.. Use this prepaid card anywhere Mastercard is accepted. Better still, there are no monthly account fees and no minimum balance or foreign transaction fees. That's why we think it's the best large account balance prepaid credit card.
$0 account fee
Earn 1% CashBack when you spend on your Cash card
$0 minimum balance requirement
Earn 4.00% - 5.00% interest on your balance
Since your Cash account funds are placed in trust with up to three CDIC member institutions, you get up to $300,000 in deposit insurance
If you're not interested in investing, you can find higher standard savings rates elsewhere
Many prepaid cards are only available to people who have reached the age of majority in their province. That's not the case with the Mydoh Smart Cash Card, which we think is the best prepaid card for teens. Issued by the Royal Bank of Canada, Mydoh is designed to help parents teach their kids how to manage their money. From your Mydoh Parent Account, you can send money to your teenager instantly, and they can use their card to make purchases in-store and online. The card can be used anywhere Visa is accepted and can be used as a physical or digital card.
Parents set up and monitor the account
Helps keep track of tasks and chores
Dedicated Visa Debit card for your kid
Backed by RBC, a major Canadian bank
30-day free trial (for new subscribers)
Kids cannot deposit cheques or cash into their Mydoh account
Kids cannot withdraw or deposit using ATMs
Additional monthly fee of $0 (but includes up to five youth or kids' accounts under one plan)
The Mydoh Smart Cash Card is also our top pick as the best prepaid credit card for kids for several reasons. The Mydoh app and the Smart Cash Card are offered with the aim of helping kids learn the value of money in the digital world. The app teaches kids about money and budgeting through play, and you can set and track tasks through the app that your child needs to complete to earn their allowance. Your child can also set their own savings goals, and then use the card for purchases both in-store and online.
Parents set up and monitor the account
Helps keep track of tasks and chores
Dedicated Visa Debit card for your kid
Backed by RBC, a major Canadian bank
30-day free trial (for new subscribers)
Kids cannot deposit cheques or cash into their Mydoh account
Kids cannot withdraw or deposit using ATMs
Additional monthly fee of $0 (but includes up to five youth or kids' accounts under one plan)
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
2.5%
Monthly Fee
$0
Minimum Age
18
Minimum Age Teen Account
4
# Included Account
5
Rewards
N/A
How to compare prepaid credit cards in Canada
Searching for the best prepaid credit card in Canada? Consider the following factors when comparing your options:
Monthly/annual fees. Check whether you’ll need to pay a monthly or annual fee on the prepaid card. There are many no-fee cards available, but prepaid credit cards that allow you to earn cash back or rewards sometimes have a fee.
Interest-earning power. Some cards allow you to earn interest on your card balance, so compare interest rates across cards to find the best value.
Rewards. Can you earn cash back on your purchases, frequent flyer points or other rewards when you spend with your card? If so, check the amount of rewards you earn for every dollar you spend.
Other fees. Check the terms and conditions to find out whether any other fees apply to a prepaid card. These may include activation, loading, ATM withdrawal and foreign transaction fees.
Load limits. Find out if the card has minimum deposit requirements or maximum deposit limits, then decide if these requirements or limits suit your needs.
How to apply for a prepaid card in Canada
Follow these steps to apply for a prepaid card:
Compare cards. Compare a range of prepaid cards based on the key features you want, such as low or no fees, cash back rewards or the ability to earn interest.
Submit an application. When you’ve found the right card, submit an online application form with your name, contact details and proof of ID.
Receive your card. Your physical card will be mailed to you and may take a week or more to arrive. In the meantime, you may be given a virtual card you can use to make online purchases.
Load funds. Deposit money onto your prepaid card and start spending.
Alternatives to prepaid cards in Canada
If a prepaid credit card isn’t the right fit for you, there are plenty of alternatives to consider:
Debit cards. A debit card is linked to your everyday chequing account or savings account, allowing you to use the funds in your account to shop in-store and online. You can also use your card to withdraw cash at ATMs.
Secured credit cards. A secured credit card requires you to put down a security deposit when you apply for a card, and that deposit then serves as your credit limit. It’s an option worth considering if you have bad credit or no credit history.
No annual fee credit cards. A credit card with no annual fee may not allow you to earn rewards at the same high rate as some cards, but these cards still allow you to earn cash back on your purchases.
Low interest credit cards.Credit cards with low purchase rates hep make it more affordable to pay off your purchase rate. Just remember that an annual card fee may apply.
Cash back credit cards. A cash back credit card is designed to let you earn cash back on every purchase you make. However, you’ll need to watch out for high interest rates and annual fees.
Rewards credit cards.Rewards credit cards let you earn points you can redeem when shopping for flights, gas, everyday purchases and more. However, you’ll need a good to excellent credit score to qualify for a card, and many come with high annual fees.
Bottom line
The best prepaid card in Canada varies from one person to the next. It all depends on what you’re looking for in a card — low or no fees, cash back on purchases, the ability to earn interest on your balance or maybe a combination of the above. Shop around and compare a range of options to find the prepaid credit card that’s right for you.
Frequently asked questions
There are a number of options for prepaid credit cards in Canada, so finding the best prepaid card really depends on your needs and how you plan to use the card. For instance, if low or no-fees are critical, then you'll want to avoid prepaid cards that require a transaction or initial set-up fee or charge a transaction charge. Other good perks to look for include cash back, no annual fees, and the ability to use it at home and when you travel.
There are dozens of prepaid credit cards available in Canada but most fall into two network categories: Visa prepaid cards or Mastercard prepaid cards. If you have a network preference, consider looking for a prepaid card within this network.
For instance, popular Visa prepaid cards include the CIBC AC Conversion Visa prepaid card and the Canada Post Reloadable Visa prepaid card. Popular Mastercard prepaid cards include the KOHO Mastercard prepaid card, EQ Bank Card prepaid Mastercard and Wealthsimple Cash card.
If you have specific usage needs, then review cards based on those needs. For instance, if foreign transaction fees are important to you, consider the EQ Bank Card (a prepaid Mastercard with a $0 foreign transaction fee) . If carrying multiple currencies is critical, then consider the CIBC AC Conversion Visa prepaid card. If cash back is a good motivation, consider the Neo Money Card.
Sadly, prepaid credit cards no not help to build credit in Canada. Prepaid cards in Canada do not affect your consumer credit profile, since you're spending money you've already earned and transferred to the card. As such, the prepaid card issuer has no payments it can send to credit bureaus, so no help (or hurt) to your credit report. As a result, using a prepaid credit card in Canada does not help you build credit or improve your credit score. However, a prepaid credit card can help you budget and can help kids, teens and young adults to learn the process and drawbacks of cashless transactions.
A prepaid credit card allows you to make purchases with your own money rather than on credit. You can load your own funds onto the card, then use it to make purchases in-store and online in the same way you would use a regular credit card.
Prepaid credit cards can be a useful option for some people. Because you don't actually have to apply for credit, they encourage you to only buy what you can afford rather than running up a large debt. It's also easy to qualify for a prepaid card, and they can help you manage your budget more effectively. Finally, if you're travelling overseas, a prepaid card offers a secure and simple alternative to carrying lots of cash.
No. When you buy something with a prepaid credit card, all you're doing is spending your own money. Because you don't actually borrow any money, a prepaid card won't hurt your credit score.
Yes, it's generally quite easy to qualify for a prepaid credit card. Some cards have a minimum age requirement of 18 or 19, but there are others that are suitable for teenagers.
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.
Whether your teenager is travelling overseas or wants to learn how to manage funds when paying on plastic, a prepaid credit card may be a good choice.
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