8 Best Prepaid Credit Cards in Canada for 2023

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Written by SnappyRates Team

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Prepaid credit cards are a great way to spend money and earn rewards while paying no interest on your purchases.

While they don’t help build your credit score, one major advantage of a prepaid card is that you won’t go into debt and can manage your finances better, as you’re only spending the money that you have.

Some reloadable prepaid cards, like KOHO and STACK, reward you with cash back on your purchases.

So, what are the best prepaid credit cards in Canada? In this complete guide, we give you our top 8 picks for the best prepaid cards to use online and in-store.

Best Reloadable Prepaid Credit Cards In Canada

The following 8 prepaid Visa and Mastercards are the best in Canada. Keep reading for the fees, top features, benefits, and more.

KOHO Prepaid Mastercard

Fees: Free, but upgrading to premium is $9/month or $84/year.

Top rewards: 1% cash back on groceries and bill payments, up to 10% cash back with KOHO partners.

The KOHO Prepaid Mastercard is one of the best Canadian prepaid credit cards for earning cash back. It pays up to 10% cash back when you spend.

The standard KOHO Mastercard is completely free to use, but you can upgrade to KOHO Premium for $9 monthly or $84 per year. Premium allows you to earn up to 2% unlimited cash back on 3 categories of your choice, like groceries or restaurants.

KOHO Premium also waives the 2.5% to 3% FX fees; you can price match on purchases and get free financial coaching.

Both KOHO Mastercards come with the KOHO mobile app, where you can view your spending and saving habits and cash back rewards.

MOGO Visa Platinum Prepaid Card

Fees: No monthly or annual fees.

Top rewards: N/A

The MogoCard is a free prepaid Visa card that plants a tree with every purchase you make.

Mogo aims to help you save money while being environmentally friendly, as you only spend the money you load onto the card. You can’t spend more than you load, so you won’t get overdrawn or charged any interest fees.

This prepaid card also comes with the Mogo app. It sends you notifications after every purchase and keeps you updated about your balance. You can also use it to create budgets and keep track of your finances.

Wise Prepaid Visa Card

Fees: Fees vary based on currency, but there are no monthly or annual fees.

Top rewards: N/A

Formerly TransferWise, Wise is an online bank best known for converting, sending, and receiving money in foreign currencies.

When you open a free currency account with Wise, you can receive a reloadable prepaid Visa card to use online and in-stores.

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The Wise card is one of the best reloadable prepaid credit cards with no fees, as it does not charge any foreign transaction fees.

It is accepted almost everywhere debit cards are accepted, in 175 countries. Fees vary based on the currency and country, but Wise stays true to the real exchange rate.

Download the Wise app to get notified for every transaction, send and receive money, and generate new digital cards at any time.

STACK Prepaid Mastercard

Fees: No monthly or annual fees if you meet spending requirements.

Top rewards: Cash back on FX fees and non-Canada ATM withdrawals.

The STACK Prepaid Mastercard is one-of-a-kind because it pays you cash back on foreign exchange fees on purchases and ATM withdrawals outside of Canada.

You can use the STACK prepaid card anywhere Mastercard is accepted. STACK also offers an early deposit of your paycheque, which you can access up to 2 days before payday.

The STACK mobile app categorizes your spending habits and sends you notifications every time your card is used. It also has a feature where you can automatically round up purchases and add the difference to your savings.

STACK to STACK money transfers are free. They have a feature where you can split the bill with friends and family.

CIBC AC Conversion Visa Prepaid Card

Fees: None

Top rewards: Earn 1% cash back for a limited time.

The CIBC AC Conversion Visa Prepaid Card is one of the best prepaid credit cards in Canada for foreign transactions. You can use it anywhere in the world with no FX fees and use the app to load it with up to 10 currencies.

There are no monthly or yearly fees and no fees to load or use this CIBC prepaid card.

You don’t need a CIBC account to sign up for this card; you can either sign up online or at a CIBC Banking Centre in Toronto’s Pearson Airport.

For a limited time, you can earn 1% cash back on all purchases.

Best Prepaid Credit Cards in Canada-imgs

Wealthsimple Cash Visa Card

Fees: No monthly, yearly, or FX fees.

Top rewards: 1% back in stocks, crypto, or cash.

The Wealthsimple Cash Visa Card pays you 1% cash back in cash, stocks, or crypto on every purchase.

There are no monthly, yearly, or foreign transaction fees, and you can use it anywhere in the world Visa is accepted.

Wealthsimple boasts an instant sign up and rewards within just 3 minutes. Your funds are protected up to $100,000 through CDIC.

You can download the Wealthsimple app to manage your rewards and spending preferences, as well as freeze or unfreeze the card at any time.

BMO Prepaid Mastercard

Fees: $6.95 annual fee.

Top rewards: N/A

The BMO Prepaid Mastercard is a reloadable, secure card with a $6.95 annual fee. You can use it anywhere Mastercard is accepted, at over 30 million locations worldwide.

It is easy to transfer funds to the card through online banking or the BMO mobile app.

What this prepaid Mastercard offers that others on this list don’t is an extended warranty and purchase protection.

MyVanilla Prepaid Visa Card

Fees: $4.95 monthly fee, up to $3.95 to reload.

Top rewards: N/A

The MyVanilla Prepaid Visa Card is a basic reloadable card that you can use anywhere in the world.

It has a $4.95 monthly fee. If using Vanilla Direct Reload, you can be charged up to $3.95 per reload. Alternatively, you can reload it at participating Walmart locations.

You can set up direct deposit to receive funds directly to your MyVanilla card, and access your funds at millions of ATMs worldwide.

MyVanilla also has a basic mobile app where you can view recent transactions, check your card balance, and find Vanilla Reload locations.

See all fees here.

Methodology:
The Snappy Rates team assesses the best prepaid credit cards based on their fees, rewards, top features, and other perks. We carefully evaluate each prepaid credit card and place more weight on the long-term rewards value each card offers. Only cards we would personally use are recommended. While these prepaid credit cards are some of the best on the market, but may not be right for you. Always do your own research and make informed financial decisions.

Pros of Prepaid Credit Cards

When using a prepaid credit card, you are only using the money that you load onto the card. This means that you don’t pay interest like you do with a regular credit card. You are unlikely to overspend, as transactions that exceed your card balance won’t be approved.

Most prepaid credit cards, like KOHO, STACK, and Mogo, come with mobile apps that make it easy to manage your finances. You can easily reload the card online or through the app.

Finally, some prepaid cards, such as Wealthsimple and KOHO, pay you cash back on each purchase. You can earn up to 10% cash back with KOHO, which is essentially rewarding you for spending your own money.

Cons of Prepaid Credit Cards

As great as prepaid credit cards are, there are some disadvantages to using them.

Only a few cards on this list offer cash back or other rewards. Regular credit cards often have higher rewards and more benefits, such as insurance and shopping coverage, that prepaid credit cards don’t.

Some prepaid credit cards charge monthly, yearly, or other fees, which can quickly deplete your balance.

Lastly, prepaid cards do not help to build or repair your credit. Your credit score will not increase unless the prepaid cards offer a credit-building program (such as KOHO Credit Building).

FAQs

Does a prepaid card build credit in Canada?

No, prepaid cards do not build credit. A prepaid card is very different from a credit card in that it does not do a credit check and is not associated with your credit score or history.

What prepaid cards do not charge fees?

The KOHO Standard Prepaid Mastercard, MOGO Visa Platinum Prepaid Card, Wise Prepaid Visa Card, STACK Prepaid Mastercard, CIBC AC Conversion Visa Prepaid Card, and the Wealthsimple Cash Visa Card do not charge any monthly or yearly fees. Some transaction or currency conversion fees may apply.

Do banks offer prepaid credit cards?

Most banks no longer offer prepaid credit cards, except for the BMO Prepaid Mastercard.

Is STACK better than KOHO?

STACK and KOHO are two very similar prepaid cards. KOHO is better for earning cash back, while STACK rewards you on foreign currency transactions and ATM withdrawals. There are pros and cons to both, so do your research to decide which is best for you.

How much can you put on a prepaid credit card?

Most Visa prepaid cards allow you to load up to $15,000 onto the card. KOHO, for example, allows you to load $20,000 onto the card and Mogo’s maximum is $10,000.

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SnappyRates Team

The SnappyRates Team comprises personal finance writers who have reviewed and personally tested hundreds of financial products in the Canadian space. With over 20 years of combined experience to draw from and expertise in all things credit cards, banking, insurance, and mortgages, our goal is to provide you with the most comprehensive guides and resources to help you on your financial journey.

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