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Best Virtual Credit Cards

Best virtual credit cards in Canada

Cameron Smonk

By Cameron Smonk

🗓️

Updated: January 10, 2025

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It used to be all about cash or plastic—and maybe metal if you were fancy enough to carry one of those sleek Amex cards. But handling physical objects? That’s so last century. Now, you can enjoy all the perks of credit without the physical card. Easily compare the best virtual credit cards in Canada to see which one is the best for your lifestyle.

Top 3 virtual credit cards

Card Annual fee Apply Now
KOHO Essential $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) Apply Now
KOHO Extra $108 Apply Now
Wealthsimple Cash Card $0 Apply Now

What is a virtual credit card?

A virtual credit card works just like the regular card in your wallet, only it has no physical card and is instead accessible via your computer or phone, and only usable for online and remote purchases (unless connected with a transaction platform on your phone like Google Wallet or Apple Pay). 

You may ask, “why would I want a card that only exists on my phone?” There are a few reasons. Chief among them is security – virtual cards disguise your actual credit card number, presenting a temporary one for purchases. That means in a data breach, you’re insulated from having your real credit card info nabbed.

How does a virtual credit card work in Canada?

If your card comes with a virtual option, you can opt to use it for online purchases (or in store via wallet app). Your credit card will create a temporary number to use for the purchase, so your real number is disguised. Once you’ve made your purchase, all info pertaining to it will be visible as usual on your statement.

Best virtual credit cards in Canada compared

KOHO Essential Account

KOHO Essential

Apply now

$20 sign-up bonus

Welcome offer

Poor

Suggested credit score

30-day free trial for any KOHO plan and get a $20 sign-up bonus on your first $20 transaction.

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

2.5%

extra cash back at selected merchants

up to 5%

Annual Fee

$48

Foreign Transaction Fee

1.5%

Get past the flashy branding and the slick app, and the KOHO Essential is a pre-paid virtual Mastercard with a handful of features. In addition to the cash back and savings interest noted above, its fees can be waived if you set up a recurring direct deposit to it, or add $1,000 each month. 

The downside to this card is the cash back can feel a little ho-hum unless you shop a great deal at the select partners where you get a cash back bonus boost. Other than that, it’s limited to its three categories and the monthly fee can eat into the return.

KOHO Extra Account

KOHO Extra

Apply now

$20 sign-up bonus

Welcome offer

Fair

Suggested credit score

30-day free trial for any KOHO plan and get a $20 sign-up bonus on your first $20 transaction.

Apply now

Pros

  • 1.5% cash back on on groceries, eating & drinking, and transportation

  • 0.25% cash back on all other purchases

  • No foreign transaction fees

  • No everyday banking fees

  • Credit Building by KOHO optional paid add-on

  • Earn interest

Cons

  • $108 annual fee

  • Deposits capped at $40,000

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • 1.5% cash back on on groceries, eating & drinking, and transportation

  • 0.25% cash back on all other purchases

  • No foreign transaction fees

  • No everyday banking fees

  • Credit Building by KOHO optional paid add-on

  • Earn interest

Cons

  • $108 annual fee

  • Deposits capped at $40,000

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

cash back on groceries, transportation, food, and drink

1.5%

cash back on all other purchases

0.25%

interest on your entire balance

3%

cash back extra at partnered merchants

5%

for credit building, instead of $10 (save 30%)

$7

Annual Fee

$108

Foreign Transaction Fee

0%

The big brother of the Essential, the KOHO Extra account pumps up the cash back (at a cost). The annual fee is increased to $108, but you now can earn cash back on dining, groceries and transportation. You also get interest on the money you pre-pay to the card, and don’t have any FX fees if you’re spending with it abroad.

Wealthsimple Cash 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%

Simply put, the Wealthsimple Cash Card is everything you want in a digital credit card. No fees, no foreign exchange, no physical card required. Earn 1% cash back on all purchases, which can be paid as stock, crypto or cash. This lean, mean card does have one drawback – no travel insurance of any kind, but that’s far from unusual with pre-paid cards.

Pros and cons of virtual credit cards

Like any card, there’s a variety of advantages and disadvantages to consider as you use a virtual card.

Pros

Pros

  • Instant access: Start spending right away as soon as your application has been approved – no waiting for snail mail

  • More secure: Temporary numbers mean your physical card is protected against data breaches

  • Flexible: Many virtual cards let you instantly customize your experience, changing limits and expiration dates online without a visit to a branch

Cons

Cons

  • Won’t improve your credit score: All the above cards are pre-paid cards which have one thing in common – they don’t affect your credit score (positively or negatively)

  • Require an app to use in person: As you may expect, you can’t use a virtual card in person, without a little in-app assistance. Forgot your phone at home? You might be out of luck unless you have a physical backup.

Frequently asked questions about virtual credit cards in Canada

  • What’s the difference between a virtual credit card and a regular credit card?

    +

    A virtual credit card is only available for use online or on your phone through a transaction app. If it comes attached to a physical card, it uses a temporary card number to protect your real card from data breaches and can be used immediately after you’re approved for it.

  • Are virtual credit cards safe?

    +

    Yes, virtual credit cards are even more safe to use than physical credit cards. They use a temporary card number when you spend it to protect your real credit card’s data.

  • Do any of the big six banks offer virtual credit cards?

    +

    Yes, right now RBC offers the Virtual Visa Debit card, which acts as a pre-paid card.

  • Do I need a digital wallet to use a virtual credit card?

    +

    You can use a virtual credit card for online purchases without a digital wallet, but for in store purchases, you’ll need a digital wallet application to use the card by tapping your phone.

Cameron Smonk Freelance Writer

Cam is a content marketer with a passion for saving, financial independence, and pulling off elaborate credit card point schemes. He has worked in Fintech and Finserve (specifically Group Retirement) and loves researching and writing about finance.

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