Prepaid Credit Cards in Canada: Top Picks & Guide for 2025
If you’re a Canadian looking to manage your spending without the risks of traditional credit cards, or perhaps you’re new to the country and building your financial foundation, prepaid credit cards might be just what you need. These cards allow you to preload money and spend only what you have deposited on them, preventing debt, and providing conveniences, including online shopping or travel benefits. This guide will take you through everything you need to know about them, including how they work, and the best ones available, while using the latest knowledge to make an informed decision. Prepaid cards can empower your finances, whether you are budgeting your day-to-day spending or planning a vacation.
What are Prepaid Credit Cards?
Prepaid credit cards are sometimes referred to as reloadable prepaid cards, or prepaid debit cards, and are the type of payment card where you load money in advance and then spend it like a regular credit card. They are not like a traditional credit card, where you borrow money; you can only spend what you have loaded. They are generally issued by banks or financial institutions and are labelled with networks such as Visa or Mastercard, making them widely accepted. For those looking to build credit, consider exploring secured credit cards to learn more.
Advantages of Prepaid Credit Cards in Canada
One of the greatest appeals of this card is the ability to have control over spending. When you have a tendency to overspend, loading a set amount is like a built-in budget, great for teens, students, or anyone who needs to rebuild finances. They do not require any credit checks, making them easily available to new entrants or those with poor credit history. Additional benefits are free ATM access, bill payments, and even credit-building add-ons at a fee. Canadians can use reloadable prepaid Visa or Mastercard in Canada, which makes them flexible enough to use in everyday life, including grocery shopping and online subscriptions. If you’re interested in cards with rewards, check out our guide on cashback credit cards for options that might complement a prepaid card.
Best Prepaid Credit Cards in Canada for 2025
This guide highlights the best prepaid credit cards available to Canadians in 2025. Each recommendation focuses on key factors, including cashback rewards, fees, ease of use, and overall value.
| Card Name | Annual Fee | Interest on Balance | Cashback Rewards | Best For |
| KOHO Extra Mastercard | $144 ($12/mo) | 3% | 1.5% on groceries, restaurants, transport; 0.25% elsewhere | High rewards on essentials |
| Wealthsimple Cash Card | $0 | 1.75% (up to 2.75%) | 1% on all purchases | No-fee everyday use and travel |
| KOHO Everything Mastercard | $177 ($14.75/mo) | 4% | 2% on groceries, etc.; 0.5% elsewhere | Maximizing interest and cashback |
| EQ Bank Card | $0 | 3.5% | 0.5% on all | Fee-free with solid interest |
| KOHO Essential Mastercard | $48 (waivable) | 2.5% | 1% on specific categories | Budget-conscious with deposits |
The KOHO Extra stands out for its balance of rewards and perks, like no foreign exchange fees and free credit scores. Wealthsimple shines for travelers with ATM reimbursements and no fees. Other notables include the Neo Money Card for flexible rewards and the Wise Card for international transfers, though they may have niche fees. Apply via their sites: KOHO, Wealthsimple, EQ Bank.
It’s important to note that all fees and rates are subject to change. It is recommended to apply directly via their official websites for the most current information.
How to Choose and Use a Prepaid Card
Start by determining your needs. When you intend to travel with the card, you should find one that does not charge foreign exchange (FX) fees, like the Wealthsimple Prepaid Mastercard. In case you have poor credit, choose a card that does not involve a credit check. Compare the features and fees on trusted websites such as Ratehub.ca or NerdWallet.ca to find the best alternative.
It is simple to load money onto a prepaid card. You can make a direct deposit, which can waive some fees, or you can transfer money using mobile apps using e-transfer. To use your card securely, turn on transaction notifications, do not log in via public Wi-Fi, and report any loss or theft as soon as possible. Most prepaid cards also provide FDIC-like protection, which insures your balance up to a specific amount. Students might find prepaid cards a great starting point; learn more in our guide on student credit cards.
Conclusion
The prepaid credit cards in Canada offer a convenient way to handle finances without the possibility of incurring debt and flexibility in budgeting, travelling, or developing financial habits. With options like KOHO’s rewarding cashback, Wealthsimple’s no-fee versatility, EQ Bank’s high interest, or Wise’s global reach, there’s a card for every need—whether you’re a student or a frequent traveller. Compare fees, rewards, and features to find the best fit for your lifestyle, and consider consulting a financial advisor to align your choice with long-term goals.
Learn more about related products, such as secured cards or travel rewards, to add to your financial strategy. For a broader look at card options, explore our comprehensive guide on top Canadian credit cards.