Guide to finding the best prepaid card in Canada

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 cards in Canada

Finder Score	Monthly Account Fee	Free Transactions	e-Transfer Fee
Best Reloadable Prepaid Credit Card in Canada
8 Great Neo Chequing Account	8 Great	$0	Unlimited	$0	Go to siteView details Compare product selection Compare	loading	Why we like it 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. Earn up to 2% cashback 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. Pros & cons Pros Unlimited transactions for $0 Interac e-Transfer cost $0 $0 account fee Cons Online only with no physical branches Doesn't come with a debit card, though does come with the Neo Money Card
Largest Account Balance Prepaid Card in Canada
9.3 Excellent Wealthsimple Chequing Account	9.3 Excellent	$0	Unlimited	$0	Get a $25 cash bonus when you open your first Wealthsimple account and fund at least $1 within 30 days. Plus, earn up to 2.25% interest. T&Cs apply.	Go to siteView details Compare product selection Compare	loading	Why we like it 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 prepaid Mastercard. This prepaid Mastercard is paired with a Wealthsimple Chequing Account, which comes with a signup offer. 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. Pros & cons Pros Get a $25 cash bonus when you open your first Wealthsimple account and fund at least $1 within 30 days. Plus, earn up to 2.25% interest. $0 account fee Earn cashback when you spend on your card No minimum balance requirements Earn interest on your balance Cons If you're not interested in investing, you can find higher standard savings rates elsewhere Exclusively online service

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Monthly Fee	Transaction Fee	Foreign Transaction Fee	Rewards
Best No Fee Prepaid Card with No Foreign Exchange Fees
EQ Bank Card	$0	$0	0%	0.5% cashback	Go to siteView details Compare product selection Compare	loading	Why we like it 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). Plus, you can earn interest on your balance. Pros & cons Pros No annual or monthly fees No foreign transaction or FX fees No international ATM withdrawal fees charged by EQ Earn cashback Cons 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
Best Prepaid Card with Extra Cash Back
KOHO Extra Prepaid Card	$12/month or $144 annually	$0	0%	Up to 6.5% cash back	Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up. T&Cs apply.	Go to siteView details Compare product selection Compare	loading	Why we like it 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 2.5% 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. Pros & cons Pros Earn cashback on your spending 0% foreign exchange fees Access credit building Cons Monthly fee of $12 or annual fee of $144
Best Travel Rewards Prepaid Credit Card in Canada
KOHO Travel Mastercard	$12/month or $144 annually	$0	0%	Up to 5% cash back	View details Compare product selection Compare	loading	Why we like it 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 up to 4% 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. Pros & cons Pros Earn 0.5% to 5% cashback No foreign transactions fees Unlimited e-Transfers Earn interest on your balance Cons Monthly fee charged for each KOHO plan
Best Big 5 Bank Prepaid Mastercard
BMO Prepaid Card	$9.99 annually	$0	2.5%	N/A	View details Compare product selection Compare	loading	Why we like it Prefer to deal with a big bank? We recommend checking out the BMO Prepaid Mastercard. This card comes with a low annual fee of $9.99 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. Pros & cons Pros Low annual fee Worldwide access Access to a host of security features No interest rate charge for purchases or cash advances Cons You won't earn any rewards on purchases No interest earned on your balance
Best Prepaid Credit Card in Canada for Teens & Kids
Mydoh Smart Cash Card	$0	$0	2.5%	N/A	View details Compare product selection Compare	loading	Why we like it The Mydoh Smart Cash Card is also our top pick as the best prepaid credit card for kids and teens 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. Pros & cons Pros 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) Cons 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)

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• Methodology: How we picked the Best Prepaid Credit Cards in Canada

  We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

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:

1. 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.
2. Submit an application. When you’ve found the right card, submit an online application form with your name, contact details and proof of ID.
3. 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.
4. 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

• Which prepaid card is best for Canada?

  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.

• What prepaid cards are available in Canada?

  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 Canada Post Reloadable Visa prepaid card. Popular Mastercard prepaid cards include the KOHO Mastercard prepaid card, EQ Bank Card prepaid Mastercard and Wealthsimple prepaid Mastercard.

  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 cash back is a good motivation, consider the Neo Money Card.

• Do prepaid credit cards build credit in Canada?

  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.

• What is a prepaid credit card?

  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.

• Is it a good idea to have a prepaid 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.

• Does a prepaid card hurt your credit?

  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.

• Can I get a prepaid credit card?

  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.

To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 20-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. See full bio

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