What banks offer prepaid debit cards?
While not considered banks, PayPal, Visa, Mastercard and Netspend offer prepaid debit cards available to sign up for.
Banks such as Regions Bank, Fifth Third Bank, U.S. Bank and others offer prepaid debit cards as well.
Are prepaid cards safe to use online?
Can you build credit with a prepaid card?
No, there’s usually no way to build credit with prepaid cards. Credit history is established through positive borrowing history. Since you provide the money upfront when you purchase a prepaid card, you’re not borrowing or repaying any money.
Building credit is important if you want to get a credit card or loan, so while prepaid cards may make sense for some situations, they may not be the best choice if you’re working on your credit score. Having no credit or bad credit can be a roadblock in achieving your goals, such as buying a house, getting that next great job or lowering your insurance premiums. If you want to dip your toe into credit building, explore secured credit cards, which usually provide a low credit limit in exchange for a security deposit.
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Prepaid Credit Card in Toronto?
Complete List of Prepaid Credit Cards in Canada
Where do you spend prepaid debit cards?
Prepaid Card
Hello, where can I get a prepaid credit card in Toronto without using my bank? Can I buy it in shops, if so where?
Why I need a prepaid credit card?
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I don't have a credit card history anymore so my credit cards are gone.
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I'm currently enrolled in Credit Canada and I'm almost done paying my debts.
Hello Friends,
I tried to get a complete list of prepaid credit cards in Canada and came up with this list. Hopefully, I am not missing any card that's worth mentioning. I didn't include the "Debit Credit" cards here except Wise as I felt it needs to be on the list.
Please let me know if you see anything inaccurate or missing. Also let me know if you use any of these cards and think I am not being fair in my verdict.
Wealthsimple Cash Mastercard
The Wealthsimple Cash App enables users to claim their unique Dollar $ign, similar to the Cash App in the US, offers a free prepaid Mastercard that rewards users with 1% cash back on all purchases made with the card which can earn a nice 1.5% interest.
In addition to providing a free prepaid Mastercard with 1% cashback on all purchases, the Wealthsimple Cash Card and app also offer a variety of other benefits.
Send money instantly to contacts
No monthly or annually account fees
Reload instantly via a direct bank transfer
No foreign transaction fees (Save those nasty 2.5% FX fees internationally)
No ATM withdrawal fees globally (WS doesn’t charge any fee)
Free deposits or withdrawals
Add Wealthsimple Mastercard to Apple or Google Pay
Use the cashback to purchase stocks, cryptos, or earn 1.5% interest
My Verdict: Overall, Wealthsimple Mastercard is an excellent choice for those seeking cashback rewards. I also think it is one of the best cards for international purchases while traveling considering the no FX and ATM feature.
CIBC AC Conversion Visa Prepaid Card
Currently, the CIBC Air Canada Conversion Visa Prepaid Card is the sole prepaid card in the market that permits users to load and store 10 currencies on a single card while also offering 1% cash back on all spending.
When buying products from international online merchants, many credit cards entail transaction fees due to the currency conversions required. The AC Conversion Visa Prepaid Card, on the other hand, makes purchases on supported international online stores in any of the ten currencies more convenient and cost-effective.
Current Supported Currencies: CAD, USD, EUR, GBP, AUD, JPY, HKD, TRY, CHF and MXN
This means, card owners can simply load these 10 currencies at anytime from anywhere to earn 1% cashback on all their Canada and international purchases. Here is the list of CIBC Air Canada Conversion Visa Prepaid card benefits:
Preload the supported currencies and save 2.5% foreign transaction fees
No monthly fees
1% cashback on all transactions
Free Canadian ATM withdrawals
1 free international ATM withdrawal monthly
Earn $10 bonus for referring a friend who joins and loads the card
My Verdict: The CIBC AC Conversion Card is a viable solution for individuals who frequently travel abroad. It allows travelers to conveniently make payments worldwide using local currencies, while helping them manage the unpredictability of FX rates and save on fees.
Considering that this card is free, I recommend having the CIBC AC Conversion prepaid card as a backup card for international traveling.
EQ Bank Prepaid Mastercard
EQ prepaid Mastercard is the newest prepaid card in Canada offered by EQ bank. This card doesn’t have any monthly or annual fee. It also comes with 0.5% cashback and pays 2.5% interest on the preloaded funds in the account.
In addition, there is no ATM withdrawal or foreign transaction fees. On top of this, EQ bank reimburses for all Canadian ATM withdrawal fees incurred by the ATM provider. The only downside of the card is that it is not available for Quebec residents.
Current Bonus: Sign up and earn a $20 referral bonus after making the qualifying deposit.
My Verdict: I highly recommend EQ prepaid Mastercard especially for international transactions. I can’t think of any Canadian provider offering a free card while waiving FX and ATM withdrawal fees.
Netcoins Prepaid Visa Card
Similar to Shakepay and Crypto com cards, Netcoins prepaid visa card is a Crypto card which earns 1% on all transactions in Bitcoin which can be converted to Canadian Dollar and be withdrawn for free using Interac e-Transfer. Funding via e-Transfer is free to.
The card comes in both physical and virtual forms and can be added to Google, Apple, and Samsung Pay. The card has a 1.5% foreign transaction fees but offers free ATM withdrawals worldwide.
One limitation of the card is that it initially earns in $CAD then converts the amount on the 10th day of each month to Bitcoin so the earning in Bitcoin isn’t immediate.
My Verdict: I am neutral about Netcoins card considering it has no ATM withdrawal fees and pays 1% cashback on all transactions. However, don’t forget there is a 1.5% foreign transaction fee which should be considered for international purchases or ATM withdrawals.
Shakepay Prepaid Visa Card
Shakepay Card is crypto virtual card which can be used with any Visa-accepting merchant where Apple and Google Pay are supported. Funding and withdrawing $CAD is free via Interac e-Transfer.
The card pays 2% cashback on the first $5,000 lifetime spending. After this amount, the reward is 1%. This cashback comes is paid in Bitcoin which can be exchanged to Canadian Dollar easily but with a 1-3% embedded fee.
There is also a 3% foreign transaction fee for any international purchases.
My Verdict: Considering how Bitcoin fluctuates and the limitation of this card (no physical card so no ATM withdrawals) plus the FX fees, I recommend Shakepay Card only to those who believe in the future of Cryptocurrency and Bitcoin.
Mogo Prepaid Visa Card
The Mogo prepaid credit card stands out as the most ecologically sustainable option available. Not only is it free to use, but it also offers various benefits that could appeal to those with an environmentally conscious mindset.
For instance, each transaction made with this card earns the user 50 Satoshis of Bitcoin. Additionally, the Mogo card plants one tree for every transaction, effectively offsetting around 500 pounds of CO2 emissions over a span of 25 years for each user.
Mogo has no monthly fees. However, it carries the following fees:
Domestic ATM: $1.50
International ATM: $3.00
Adding money at a Canada Post office: $3.00
Account inactivity fee after 365 days of not using the card: $1.99
2.5% foreign transaction fee
Not available to Quebec residents
My Verdict: I don’t see a real benefit of using Mogo Prepaid debit card considering it charges fees for ATM and foreign transaction usages. It also encourages consumers to spend at least once a year to avoid the $1.99 monthly inactivity fee.
BMO Prepaid Mastercard
The BMO Prepaid Mastercard comes with an annual fee of $6.95. Users have the option to deposit funds between $100 and $10,000. BMO users can load the card directly by transferring from BMO chequing or savings account.
Non-BMO customers, can load the card by using the bill payment option. It’s worth noting that using the card for cash transactions incurs a fee of $5, and the regular 2.5% foreign transaction fee is also applied.
There is no incentive (cashback) for using the card. However, users can enjoy extended warranty and purchase protection for items purchased by the BMO prepaid Mastercard.
My Verdict: I understand that the annual $6.95 fee is negligible. However, considering there is no real benefit of having the card plus its 2.5% FX fee and monthly $5 inactivity fee, I don’t recommend BMO Prepaid Mastercard.
KOHO Mastercard Prepaid Card
KOHO offers a prepaid Mastercard that can be used for online and in-store purchases anywhere Mastercard is accepted. Additionally, the card comes with a smartphone app that provides budgeting tools, automated savings, and easy payment options through Apple Pay or Google Pay.
KOHO Plans - KOHO Subscriptions
One feature that sets KOHO’s prepaid Mastercard apart from other prepaid cards is the ability to earn cashback on purchases. Depending on the retailer, cardholders can earn up to 5% cash back on their purchases.
KOHO offers three different prepaid credit card accounts which are called Easy, Essential, and Premium account. KOHO offers different cashbacks in different categories on its plans.
A feature in KOHO cards is the ability to build a credit history. However, charging Canadians with no or bad credit an annual $84 or $120 fee isn’t fair.
KOHO Easy Features:
1% cash back on groceries, bills & services
Earn 0.5% interest on your entire balance
Credit Building for $10/month
KOHO Essential Features:
1% cash back on groceries, bills & services, eating & drinking
0.25% back on all other purchases
Earn 1.5% interest on your entire balance
Credit Building for $7/month
KOHO Premium Features:
2% cash back on groceries, transport, eating & drinking
0.5% cash back on all purchases
Earn 2% interest on your entire balance
Credit Building for $7/month
No FX fees
1 free international withdrawal / month
My Verdict: KOHO could have been a great option if they didn’t have the extra $7 or $10 monthly fee for (re)building credit history. In addition, there is no need to pay $84 a month to earn 1% cashback when the free Wealthsimple Cash pays 1% on all purchases.
On top of all the fees, KOHO’s customer support and app glitches have caused nightmares to many users. I don’t recommend KOHO as there are better options as stated above.
We Financial Visa Prepaid Card
We Financial reloadable credit card was initially launched in 2015 by the North West Company Inc and gained popularity among the residents of remote Northern Canada areas.
The card’s direct deposit feature allowed for quicker access to electronic payments, such as payroll. The card has a monthly $4.95 maintenance fee. It also charges $3 ATM withdrawal fees plus the 2.5% foreign transaction fees for international ATM withdrawals.
My Verdict: Considering the many better alternatives, I don’t recommend this card.
Wise Prepaid Debit Card
Wise is not a prepaid credit card but it works similarly to other prepaid cards so I thought it’s worth mentioning here.
Wise card is a multicurrency debit card which can hold and convert 49 currencies. Card holders can also receive funds in 9 currencies but send funds to 77 countries.
There is a fee for sending money which starts from 0.41%. Receiving money in Receive AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, TRY and USD (non-wire) is free but it costs $4.14 USD if the USD payment is a wire payment.
The card comes with its own limitation including no Canadian ATM withdrawals. In addition, it only allows 2 free international ATM withdrawal as long as the total withdrawals are under $350 CAD monthly before charging the 1.75% plus $1.5 fee.
My Verdict: Wise card can be a beneficial card for those who need to send and receive money in one of the supported currencies and countries. However, I don’t think it is a good card for international travels considering its high ATM fees.
In addition, this card charges a fee to exchange between currencies. It also doesn’t offer any cashback or perks. Hence, I don’t recommend Wise debit card.
H&R Block Advantage Prepaid Mastercard
The card’s selling point is that tax refund for H&R customers is received as soon as the tax return is processed. The card has a $2.99 monthly fees. It also has a $3.00 reload fees. Interac e-Transfer which is usually free costs $3.95 with this card. Domestic ATM usage is $2.95 while international ATM costs $3.95.
On top of all these fees, the card users are dinged with a very high 3.5% foreign transaction fee which is the highest I have ever seen.
My Verdict: Don’t bother with this card even if you are an H&R client. All of us can wait a couple days to receive our tax refunds on another card which doesn’t cost anything.
Vanilla Prepaid Mastercard
The only use of Vanilla Prepaid Mastercard is to be given as a gift. This card can’t be used to withdraw cash from an ATM. It also comes with the 2.5% foreign transaction fee.
There is also a $3.95 to $7.95 activation fees on this card.
My Verdict: This card is good if you’d like to burn some extra money. Otherwise, I recommend buying a simple Walmart or Amazon gift card which doesn’t carry an activation fee.
Titanium+ Prepaid Mastercard
This is yet another card which should technically be considered illegal due to its hidden fees. First, there is a $9.99 plus tax activation fee for both standard and bundle plans.
In addition, there is a $6.50 or $12.99 monthly fee for this card. Canadian ATM withdrawal costs $1.99. I really don’t want to keep talking about the fees associated with this card as I am sure you are wise enough to never consider this card.
My Verdict: I am trying to understand why this card exists or being used by anyone. The card doesn’t offer any reward and users end up paying so much in fees.
American Express Prepaid Cards
American Express has prepaid cards that can be purchased online and shipped to buyers directly in Canada. These cards are available in $25, $50, $100, $200, $500, and $1,000 denominations.
There is no monthly fee with an Amex prepaid card. However, there is a one-time activation fee to use the card. This fee varies based on the card value.
My Verdict: Similar to Vanilla prepaid card, I am not a fan of any preloaded credit card due to its activation fee. Hence, I don’t recommend it unless you can’t find any better method of using your Amex points other than buying an American Express prepaid card.
STACK Prepaid Mastercard
STACK prepaid Mastercard should be on the list of the worst prepaid credit cards in Canada. The card used to offer no foreign transaction fees plus free worldwide ATM withdrawals.
These two were the main reason most savvy Canadians loved this card. However, STACK self destructed itself by removing its two best features.
In addition, as seen on the fee table below, STACK charges fees for pretty much everything which makes the card absolutely worthless unless you spend minimum $350 monthly on this card which doesn’t offer any incentive (cashback or points).
I hope by now I am being very clear that avoiding STACK is one of the best choices you can make at the moment. Just look at that $9.99 e-transfer to close out your account.
Cash Passport Canada Post Prepaid Cards
You would expect better than an iconic name such as Canada Post. I didn’t expect to find a card worse than STACK but here we have another winner to be added to the worst prepaid cards in Canada.
The card charges $15 for the acquisition of the card and $3 for any top ups. The card also comes with an inactivity fee of $2.80 per month if inactive for 12 months.
On top of these non-sense fees, there is a 1.5% transaction fees for domestic spending. ATM withdrawals varies but the cost is $3 in Canada. FX fee is 3.25% which is considered very high.
This card can be reloaded at any Canada Post office in cash or with a debit card in Canadian Dollars, US Dollars, Euros, British Pounds, Japanese Yen, Australian Dollars, or Mexican Peso.
My Verdict: Please stay as far as possible from this card.
Final Words: Wealthsimple Cash and EQ Bank Card are the best prepaid cards.