Prepaid credit cards in Canada are a great alternative to the traditional card that is levied with hefty interest fees. These cards are just like the card that is issued by your bank. You can withdraw cash from the ATM using this card, reload your card easily, pay your bills, buy things online, and transfer money to your friends and family as well. The question is which prepaid credit cards in Canada are the best! Well, let us find out in this article.
Some prepaid credit cards have the eccentric feature where they are loaded with budgeting tools that help you manage the money more efficiently and also acquire great rewards in the process. In case you want to curb your impulsive buying habits and save money along with having a comfortable lifestyle and minimizing your debt, these cards are ideal for you.
Understanding Prepaid Credit Card
Prepaid credit cards are a convenient tool that is similar to a gift card in some aspects. Both of these cards are preloaded with money that you can use to pay your bills or make any purchase. You can get a prepaid card in Canada from banks, retailers, financial institutions, via Mastercard, Visa, or American Express payment networks.
Once you get the card, you have to deposit money into it. To do that, you have several alternatives like Interac e-Transfer, online banking, or direct deposit.
You can also go to Canada Post and load your card with money if you don’t have a bank account. The prepaid credit card means you have access to only the money that you have loaded in the credit card. You can spend money until the entire amount is exhausted. You cannot do credit purchases via prepaid credit card as it is your own money that is loaded into the card. For the same reason, they are also called prepaid debit cards.
The criteria for a prepaid credit card do not take the credit ratings into account. So if you have a low credit score, you can get one, too. It will help you improve your credit score.
Which Are the Best Prepaid Visa Cards in Canada?
You can find various options for prepaid Visa cards through prominent banks like Scotiabank or CIBC. You can find the most sought out offers from FinTech companies like,
KOHO allows you to preload your Visa card and lets you make online payments anywhere where the Visa is applicable. This card also comes with an online application that lets you manage money via budgeting, savings automation, and doing payments easily through Apple Pay or Google Pay. The trait that helps KOHO stand apart is the cashback that is provided to you on each purchase. You can earn up to 2% cashback based on the account you hold.
The basic characteristics of KOHO are as follows.
- You get to access the KOHO credit builder.
- 0.50% cashback is provided.
- Zero monthly fees.
- You get to trace your spending pattern.
- You can use the roundup feature for automating your savings.
- Easy access to KOHO early payroll (receive $100 for 3 early days).
Power-users can also benefit from the KOHO premium via card because it gives 1.5% cashback if they spend 2% cashback. You have access to efficient and free financial tools like coaching, foreign currency transaction fees, etc. The annual fee that you incur for the KOHO card is $84, while the monthly fee stands at $9.
MOGO Visa Platinum card does not oblige you to pay any monthly fee, and you can make online purchases or through POS. Its app is stellar; it provides you with useful information regarding your spending pattern.
Here are the benefits that you yield from the MOGO Visa Platinum Card.
- Freezing the card is easy in case it is lost or stolen.
- Automated savings. For example: Transfer $50 automatically every week.
- Easy payments options through Google Pay, Samsung Pay, Apple pay, etc.
- You can decide on how much you spend and find ways to cut down on extravagant patterns.
To get this card, you need to apply for the free membership of MOGO. The benefits of this membership include easy access to Equifax Credit score and get fraud protection.
CIBC AC Conversion Visa Prepaid Card
This is a special card that allows you to store more than one currency, hence you won’t have to visit the currency exchange when you travel abroad.
It can hold 10 currencies at a time. That includes EUR, JPY, GBP, USD, etc. Once you lock the exchange rate, all you have to do is make payments in the currency that you require. There is no obligation to be a CIBC customer when you opt for this service as the bank does not run a credit check either.
If you take out money from an account outside of Canada, a regular transaction fee will be levied. The first withdrawal from the ATM is free of cost.
CIBC Smart Prepaid Visa Card
You can acquire the CIBC Smart Prepaid Visa Card via online or mobile banking, or you can visit a CIBC Banking Centre for the same. This card is versatile and is accepted in many places. It lets you load the funds from the CIBC chequing, saving account, or line of credit.
You can order this card for free, and if you want to add more information via customization, you will have to pay $5.95. If you lose this card and want to replace it, that will cost you $14.95. The foreign currency exchange rate for this card is 2.5%.
Here are some other best prepaid credit cards in Canada that you can reload.
Scotiabank Prepaid Reloadable Visa Card: You have to pay an annual fee of $10 and a purchase fee also $10. You get rewarded with 1 SCENE point for every $15 purchase that you make via this card.
Canada Post Prepaid Reloadable Visa Card: $3 monthly service fee, and $15 purchase fee is levied. You get purchase protection and extended warranty insurance via this card.
Which Are the Best Prepaid Mastercards in Canada?
A prepaid Mastercard has uncanny similarities to the Mastercard Credit Card. This card allows you to pay online and at POSD. It lets you do bill payments as well. If you want the great service of Prepaid Mastercard in Canada, Stack Mastercard is ideal.
Stack Prepaid Mastercard
This prepaid card is very useful as it gives you several benefits over other rival travel credit cards.
Its characteristics include:
- The foreign currency conversion fee is non. For savings, it is 2.5%.
- Zero account fee.
- STACK-to-STACK money transfer is allowed.
- You can do bill payments.
- If you withdraw money from an ATM, it is free.
- You get a cashable fee at retailers that partake.
The app for this card is very user-friendly that helps you monitor where you spend the money. You also save on autopilot as it rounds off every purchase to $1, $2, $5, or $10, and adds that amount to your savings.
BMO Prepaid Travel Mastercard
This is a secure credit card where you pay only a minimal fee of $6.95. You can start by loading your card with upto $100 and a maximum of $10,000.
To add funds to this card, you can transfer the money to a BMO chequing and savings account. If you are non-BMO, you can still load the card via online banking. For cash transactions, your card will be charged $5, and the standard fee of 2.5% will apply for foreign currency conversion.
Vanilla Prepaid Mastercard
This card also has an option for VISA that is acceptable at millions of locations globally. It is a very popular offering on graduations, birthdays, and such occasions.
Both Vanilla prepaid Mastercard and visa are present for different denominations and charge an activation fee for the use. You cannot use this card for any recurring bills or cash withdrawals from ATMs. A 2.5% fee is applicable on foreign currency payments.
You can buy this card at Best Buy, Petro-Canada, Walmart, Giant Tiger, London Drugs.
Conclusion on the Best Prepaid Credit Card in Canada
The below snapshot will give you a glance over the best prepaid credit cards in Canada.
- Free credit card scores: MOGO Platinum Visa Prepaid
- Cashback: KOHO Prepaid Visa
- Multiple currencies: CIBC AC Conversion Visa Prepaid
- Most suited for travel: STACK Mastercard