The 4 Best Prepaid Mastercard Credit Cards in Canada
By Maude Gauthier | 
Fact-checked by Lois Tuffin | Published on 14 May 2024
Table of Contents
Today, prepaid cards mean you don’t have to worry about your credit score, because anyone can apply and be approved for a prepaid card in Canada. The best prepaid cards – those that offer rewards and no fees – are almost always Mastercards. All the cards presented here are designed to make shopping safe and easy. Find out the differences between them in terms of rewards, features and fees.
1. KOHO Prepaid Card – Best Choice of Plans
[Offer productType=“CreditCard” api_id=“637cf8206bbb7962c19ae225″]KOHO offers three plans with its prepaid card. The basic plan called the Essential costs $4 per month, but you can get it for free. To get it for free, new users can either set up a recurring direct deposit of their paycheck or government benefits, or ensure that a total of at least $1,000 is deposited into their KOHO account each month.
With this plan, you get 1% cash back on groceries, food and drinks, and transportation, plus up to 50% additional cash back at select merchants. You also benefit from a 5% interest rate on your entire balance. But there are other charges, including exchange fees (1.5%) for international use. The two other, more expensive plans waive these fees on foreign transactions, and offer more cash back.
The reloadable KOHO card comes with a user-friendly mobile application for transferring funds and budgeting.
2. EQ Card – Best Free Prepaid Card
[Offer productType=”CreditCard” api_id=”63d2cb6a18196b6d2e1928c2″]The EQ Card, issued by an online bank, could quickly become your favorite payment option. There are no minimum balance requirements, monthly fees or inactivity fees. You can withdraw money free of charge from any ATM in Canada. It’s a great replacement for your regular chequing account and debit card, with the added functionality of a credit card!
The EQ card earns a 0.5% cash back on all your purchases. Since it’s linked to a bank account, the money you deposit in it also earns interest, at a rate of 2.5% (or 4% with direct deposit of your salary).
Moreover, the EQ card is ideal for travel, as EQ Bank charges no foreign transaction fees. When you use the EQ card outside the country, you only pay the Mastercard exchange rate. Cash back is lower than KOHO’s, but EQ offers other advantages, including no annual fee and no exchange rate, making the EQ card an excellent prepaid card.
3. Neo Money Card – Best Cash Back
[Offer productType=”CreditCard” api_id=”651f449d5c9fa839e62b913c”]The Neo Money Card gets you a high cash back rate. When you make your first purchase at any of the Neo partner stores, you can get up to 15% cash back! After that, you can get up to 5% on delivery, ride share and streaming services, at restaurants, bars, cafes, and retailers that are Neo partners. Neo also offers a regular 1% cash back on everyday purchases, such as groceries and gas.
You can upgrade to a premium plan for $4.99 per month to get even more cash back. You’ll get 3% on gas and groceries and booster cash back at partner stores. However, be aware that there is a maximum $300 category spending per month, no matter the plan you choose.
This prepaid Mastercard is super easy to use since the funds come straight from your Neo Money account. Plus, with no monthly or annual fees to worry about, every dollar in your Neo Money Account earns 1% annual interest. If you apply now, you could get a $25 welcome bonus.
4. BMO Prepaid Mastercard – Best for People Who Prefer Big Banks
The BMO Prepaid Mastercard is reloadable and charges different types of fees, starting with an annual fee of $6.95. There is also an inactivity fee of $5 per month after the expiry date or until the card balance is reduced to $0. The other providers on this list charge nothing for inactivity. Using this prepaid card abroad will also cost you more, as there is a 2.5% conversion fee.
With this card, you can benefit from interest-free cash advances and good discounts at certain establishments, such as up to 20% at National and Alamo car rental centers, or up to 5% at Enterprise, when booking using the designated tool. It also includes extended warranty and purchase insurance.
The bank offers several deposit methods. The best option is to add money through your BMO account. If you bank somewhere else, you can simply add your prepaid card as an invoice and transfer funds that way.
FAQs about the Best Prepaid Mastercard Cards in Canada
We have covered some of the best prepaid Mastercard options in this review, including the KOHO Prepaid Mastercard and BMO Prepaid Mastercard. However, compare all these options based on features, limitations, fees and rewards. Next, pick a card that fits you the best.
Prepaid cards do not build credit and will not impact your credit score. Therefore, providers don’t ask for credit information when issuing prepaid cards. Yet, another credit card can serve as the right option for people interested in building credit.
Yes, you can own and keep as many prepaid cards as you’d like; however, some companies do put limits on how many cards an individual can own.
Almost all prepaid cards in Canada come with an expiry date. Once expired, your existing card becomes useless so you will have to apply for a replacement card. Some issuers offer free replacement cards while some will charge you a fee. Any existing balance will gets transferred to your new card.
First, choose your desired card, visit the official Mastercard website, sign up for an account and provide the required details. You must submit personal information, including your name and address. In some cases, provide identity documents as some prepaid cards only go out to Canadian residents and citizens.
In some cases, you may also have the option to visit select stores to get your card. Virtual cards are usually available right away. Meanwhile, physical cards can take up to a week to arrive since most companies sell them via mail. This is why you need a residential address in Canada.
Prepaid cards offer high security due to safety features, such as chip and PIN technology. Some also come with additional options, such as the ability to activate SMS notifications, Zero Liability Protection and insurance coverage.
