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The Best Prepaid Cards in Canada

Best prepaid credit cards in Canada

Sandra MacGregor Freelance Contributor
Tyler Wade Personal finance content strategist & writer

Updated May 20, 2025

Prepaid cards offer the payment protections of a credit card without the credit check or interest charges. Prepaid cards also let you withdraw money, online bank, and even help your kids learn about money.

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A prepaid card lets you spend only what you have while enjoying the convenience and protections of a credit card.

Prepaid credit cards are excellent payment alternatives 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. Here are some of Canada’s best prepaid cards right now:

Our 3 best prepaid card picks

  • 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. We used it to create our comprehensive best credit cards Canada list.

Best reloadable prepaid credit card in Canada

$108

First Year Value

$0

Annual Value

Apply Now On Secure Site

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 1.25%* interest on savings until you spend plus an additional 2.25% 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

$20 sign-up bonus

Welcome Bonus

$68

First Year Value

$48

Annual Value

Welcome Bonus: Get a 30-day free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.

Apply Now On Koho's Secure Site

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, the Essential, Extra, and Everything, with cash back rates improving at each level. You'll always earn interest on your account balance and extra cash back at participating merchants (they're updated regularly, so check the app for the latest rates).

Like the EQ Bank card, KOHO charges no foreign transaction fees on its Extra and Everything plans, 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, food and drink, and transportation, rates vary based on your plan. 

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 monthly maintenance fees, but you could be charged depending on the out-of-network fee charged by the ATM.

Interest: The Essential plan earns 2.5% interest on both your spending and savings account.

Annual fee: $48 for the Essential plan, but higher annual fees for other plans. 

Learn more by reading our complete KOHO review.

Best free prepaid credit card

$184

First Year Value

$0

Annual Value

Apply Now On Neo's Secure Site

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

$216

First Year Value

$0

Annual Value

Apply Now On Secure Site

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

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. 

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
  • 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
  • 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 1.25%* interest on savings until you spend plus an additional 2.25% interest when you set up recurring direct deposit to your Personal Account $0
KOHO Prepaid 1% cash back on groceries, eating & drinking, and transportation •$48.
•$4 per month - $0 when you set up a recurring Direct Deposit or deposit $1,000 each month
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

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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 Personal finance 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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