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The Best Prepaid Cards in Canada

Best prepaid credit cards in Canada

Sandra MacGregor
Author: Tyler Wade

By Sandra MacGregor & Tyler Wade

🗓️

Updated: November 27, 2024

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We Canadians love our credit cards, but they aren’t right for everyone.

Enter the prepaid credit card: An excellent payment alternative if you’d like to limit your spending and minimize debt, or if you simply don’t have the credit score to qualify for a regular credit card.

A good prepaid card today can be more than just a means of making purchases; the cream of the crop might earn cash back or rewards, offer budgeting tips, and protect you from identity fraud.

Prepaid cards are often confused with secured credit cards, and though these two card types do have some overlap in functionality, they also differ in key ways. Here are some of Canada’s best prepaid cards right now (plus, don't forget to check out our comprehensive best credit cards Canada list for all out top picks for 2024):

  • Why you can trust Money.ca's best prepaid card list

    +

    Money.ca rates all credit cards on a numeric scale of 1 to 5 stars, with 1 being the lowest and 5 the highest rating, respectively. Money.ca’s proprietary scoring formulas break down the confusing language, complex points, rewards and earn rates to give you the real data that caters to your needs first, not ours.

    Our partnerships have no impact on our ratings, which are solely determined by the merits of each card. To learn more about how we researched and ranked these cards, read our full credit card review methodology.

Best reloadable prepaid credit card in Canada

EQ Bank Card

Apply now

3.0

Fair

Suggested credit score

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Apply now

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Cash back on purchases

0.5%

Interest on your balance

2.00%

Annual Fee

$0

Foreign Transaction Fee

0%

Why we picked the EQ Bank card as the best prepaid credit card in Canada

While relatively new to the credit card game, the EQ Bank card is an immediate hit. 

The bank known for its "no fees" gives you a prepaid card that will reimburse any ATM fees you get charged. No more driving around trying to find your preferred bank to avoid the fees. Drive to any ATM and use it without charges. 

Speaking of fees, while Mastercard is known for its global acceptance, the EQ Bank card charges no fees, zero, zilch, nada, nothing on foreign transaction fees. So while you shop abroad, know that you're saving about 2.5% on every single purchase that most other cards charge. 

You can load up to $10,000 on this card, but you will need an EQ bank account. Fear not, EQ Bank is one of the best banks in Canada. Why? They give you interest on your money in the account. Earn 2.00% interest on savings until you spend plus an additional 1.75% interest when you set up recurring direct deposit to your Personal Account Unheard of for a savings/chequing hybrid account. Setup direct deposit and you can get up to 4% cash back on, well, not only money in your account, but it also applies to any cash you have on your card. A whopping 4%?! That bests the stock market on some days. 

Oh, and one more thing, you'll also earn 0.5% back on all purchases you make with this card.  

Gotta love EQ. 

Read our EQ Bank review

Best prepaid credit card to build credit

KOHO Essential

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3.9

Poor

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • A no-fee account option

  • Earn up to 5% cash back on your purchases

  • Accepted worldwide, wherever Mastercard is accepted

  • Three account tiers, so there’s something for everyone

  • Earn interest on your account

  • RoundUps feature helps you save

  • Financial coaching is available

  • Features like Credit Building (to help you build your credit history) and Cover (to protect you from overdrawing your account)

  • Compatible with Apple Pay

  • Joint account option for families and couples

Cons

  • No physical branches or tellers

  • No RRSP, TFSA or RESP accounts

  • Customer service not on par with the big banks

  • Missing some banking features, like wire transfers, currency exchanges and multiple lines of business like financial planning, mortgages and insurance

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • A no-fee account option

  • Earn up to 5% cash back on your purchases

  • Accepted worldwide, wherever Mastercard is accepted

  • Three account tiers, so there’s something for everyone

  • Earn interest on your account

  • RoundUps feature helps you save

  • Financial coaching is available

  • Features like Credit Building (to help you build your credit history) and Cover (to protect you from overdrawing your account)

  • Compatible with Apple Pay

  • Joint account option for families and couples

Cons

  • No physical branches or tellers

  • No RRSP, TFSA or RESP accounts

  • Customer service not on par with the big banks

  • Missing some banking features, like wire transfers, currency exchanges and multiple lines of business like financial planning, mortgages and insurance

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

cash back on groceries, eating & drinking, and transportation

1%

interest earned on your account balance

3.5%

extra cash back at selected merchants

up to 5%

Annual Fee

$48

Foreign Transaction Fee

1.5%

Why we picked the KOHO prepaid Mastercard

It's the best prepaid card for cash back lovers, but it's super helpful to build your credit. 

The KOHO Prepaid Mastercard® is the best prepaid option if you’re looking to stay on budget while still earning rewards.

KOHO has 3 plans to select from, with your cash back improves at each level, but you'll always earn  interest on your account balance and extra cash back back at participating merchants (they're updated regularly, so check the app)

Like EQ Bank card, KOHO charges no foreign transaction fees, but you may face fees if you withdraw from some ATMs. 

KOHO acts like a cash back card in that you earn cash back on Groceries, Transportation, food and drink vary based on your plan. $4/month ($0 annual fee when you set up a recurring direct deposit or make a monthly contribution of $1,000 or more to the card)

Key features:

Perks: Cash back, earn even more cash back at select partnered merchants, no fees for most transactions, Roundup feature to seamlessly save extra money.

Withdraw fees: KOHO itself does not charge any fees, but you could be charged depending on the out-of-network fee charged by the ATM.

Interest:

Annual fee: $48 annual, but monthly fees for other plans. 

Learn more by reading our complete KOHO review.

Best free prepaid credit card

Neo Secured Mastercard

Apply now

2.7

Poor

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • Low minimum security deposit

  • Cash back rewards on purchases

  • No hard credit check

Cons

  • High APR range

  • $5 monthly fee

  • Best cash back offer requires high balance

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • Low minimum security deposit

  • Cash back rewards on purchases

  • No hard credit check

Cons

  • High APR range

  • $5 monthly fee

  • Best cash back offer requires high balance

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn up to 4% on gas and groceries

Up to 4%

Earn up to 1% on everything else

up to 1%

Earn up to $680 in annual cashback

$680

Variable APR

19.99% - 29.99%

Cash Advance APR

22.99% - 31.99%

Annual Fee

$59

Why we picked the Secured Neo Mastercard

Direct access to your money, plus high interest and instant cash back

The Secured Neo Mastercard is similar to prepaid cards, but without the hassle of reloading funds to spend online or in-store. Instead, this card allows you full access to the balance you already hold in your Neo Everyday Account, one of the best high-interest savings accounts in Canada.

With the Secured Neo Mastercard, there’s no limit to the instant cash back you can earn. The card's reward amounts are tied to the account's balance. The more you hold in your account, the more you earn.

It’s the best of both worlds here: you’re earning high interest when you don’t spend (on your balance with your Neo Everyday Account) and high cash back when you do spend (with your Secured Neo Mastercard), allowing you to double your earning potential. 

Neo Secured Credit card is issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.

Key features:

Perks: Grow your savings with high interest earned daily on every dollar and earn instant unlimited cash back at 10,000+ partners.

Withdraw fees: Withdraw from any ATM worldwide with no fees from Neo’s side.

Loading & spending limits: The Neo Secured Mastercard uses your existing Neo Everyday Account balance so there’s no manual reload to worry about when spending online or in-store.

Fees: Free everyday transactions. There is a $5 monthly fee. 

Best cashback prepaid credit card

Wealthsimple Cash card

Apply now

Poor

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

  • No insurance

  • Relatively low spending and transaction limits

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

  • No insurance

  • Relatively low spending and transaction limits

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn at least 4% on your account balance

4%

Get 1% cash back on all purchases

1%

There are no foreign exchange fees

0%

Annual Fee

$0

Foreign Transaction Fee

0%

Why we picked the Wealthsimple Cash card

Honestly, it's me. I'm a Wealthsimple client. There's no foreign transaction fees and you earn 1% cash back. 

You can put that cash back towards your investments like your TFSA or RRSP, or simply put it back into your cash account. 

  • Methodology: How we chose the best prepaid cards in Canada

    +

    Money.ca rates prepaid cards on a scale of 1 to 5 (with 5 being the best) and are based on the following criteria: annual fee, earn rate (if applicable), foreign transaction fee, penalty fees, rewards programs, sign-up bonuses, customer service, security, additional features, and acceptance. For more, read Money.ca’s complete review methodology.

    Money.ca’s business relationships have no effect on ratings.

How do prepaid cards work?

Like traditional debit and credit cards, prepaid cards can be used to make online and in-person purchases, or to withdraw cash from an ATM. They’re a great asset for budgeting, because you load a prepaid card with whatever amount of money you wish and can’t spend beyond that amount until you load the card again. For example, if a cardholder adds $500 to a prepaid card and spends $200 on a hotel reservation or night out, then they can spend a maximum of $300 more before the card becomes unusable and must be reloaded.

Some other key things to remember about prepaid cards include:

  • They’re not debit cards. Prepaid cards are sometimes mistakenly referred to as ‘prepaid debit cards.’ A prepaid card is not interchangeable with a debit card, however, as unlike a debit card a prepaid card is not connected to a checking account.
  • They’re not credit cards. The term ‘prepaid credit card‘ is also thrown around quite a bit, but prepaid cards do not work like credit cards, as their purchases are not subject to interest charges and their use is not reported to credit bureaus. Spending with a prepaid card therefore has no influence on your credit score, positive or negative.
  • There’s no free lunch. While a prepaid card might not charge an annual fee, it’s still intended to make a profit for its issuer and may charge fees to load money onto the card, make ATM withdrawals, etc. Be sure to read the fine print.

Related: How to create the perfect budget

Where to buy prepaid cards

A wide variety of Canadian financial institutions offer prepaid cards today, including some of the Big 5 banks, as well as a number of newer competitors. The easiest way to get a prepaid card is to apply for it online (check out our links above) and receive it by mail—this will likely be the only way to receive prepaid cards issued by smaller institutions. Bigger banks may issue their prepaid cards in person at a branch, and they may require you to have a bank account with them as a prerequisite to get their prepaid card.

Most (but not all) prepaid card issuers require cardholders to be at least the age of majority in their province. Requirements other than that are scant, which make prepaid cards a viable payment solution for those with a shaky credit history, or those with no credit history at all.

Related: Tips on building credit history for new immigrants

Prepaid credit card pros and cons

Pros

Pros

  • Facilitates easy cashless payments

  • No credit check for approval

  • No interest charged on purchases

  • Helps with sticking to a budget, because you can never spend more than what you’ve loaded onto the card.

Cons

Cons

  • Will not improve your credit score

  • Some charge fees for loading funds, ATM withdrawals, etc.

  • Typically earn less rewards/cash back and have fewer value-added features than top unsecured credit cards

Prepaid card vs secured credit card

Here’s a table to help summarize the differences between prepaid cards and secured credit cards:

Item Prepaid Card Secured Credit Card
Fees Likely no annual fee, but fees may be charged to reload the card or make ATM withdrawals May or may not have an annual fee + fees for cash advances, foreign transactions, etc.
Credit Limits You can only spend whatever amount you add to the card Your security deposit becomes the card’s credit limit
Credit Score Will not affect your credit score Will affect your credit score
Interest Rates Purchases are deducted immediately; you can’t carry a balance You can carry a balance and thus can be subject to interest rates

Should you get a prepaid card?

Even if you count yourself among those who prefer to be unbanked, these days it’s virtually impossible to make all your transactions in cash. Prepaid cards can be a fitting middle ground if you’ve sworn off credit and debit cards, but still want the convenience of cashless payments. A prepaid card can also be a useful tool for those who’ve had chronic problems repaying their credit card balances and are planning to set stricter limits on their spending.

That said, if you’re looking to set spending limitations and simultaneously improve your credit score, you might elect to go with a secured credit card.

Summary: Best prepaid cards in Canada

Credit Card Card Type Card Features Annual Fee
EQ Bank card Prepaid Earn 2.00% interest on savings until you spend plus an additional 1.75% interest when you set up recurring direct deposit to your Personal Account $0
KOHO Prepaid $48. $4/month ($0 annual fee when you set up a recurring direct deposit or make a monthly contribution of $1,000 or more to the card)
Neo Secured Mastercard Functions as a Prepaid Earn up to 4% on gas and groceries when you have $10,000 in your account. $5 monthly fee
Wealthsimple Cash Prepaid Earn 1% cash back on all purchases $0

Related Articles:

Sandra MacGregor Freelance Contributor

Sandra MacGregor has been writing about finance and travel for nearly a decade. Her work has appeared in a variety of publications like the New York Times, the UK Telegraph, the Washington Post, Forbes.com and the Toronto Star.

Tyler Wade Content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

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