The 6 Best Prepaid Business Credit Cards in Canada
By Michael Wight | Published on 04 Aug 2023
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A large number of companies offer prepaid business credit cards in Canada. The companies designed these cards for startups, big and small organizations, partnerships, and more. Since traditional business credit cards can be hard to qualify for due to stringent requirements, prepaid business credit cards can be a great option.
These prepaid cards come with perks such as cash advances and special discounts but fewer limitations and easier eligibility requirements. There are several prepaid business credit cards to choose from, all with their own pros and cons. Some companies even give the option to manage employees’ spending.
In this article, we’ll have a look at the six best prepaid business credit cards in Canada and discover their advantages and disadvantages.
Read more about business credit cards
Vault Prepaid Mastercard – Best for e-Commerce Startups :
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Are you a small business in the bustling world of e-commerce? The Vault Corporate Card is a prepaid credit card and a small business banking hub rolled into one. And the best part? No credit checks, no personal guarantees, and no yearly or monthly fees! Each user can enjoy one free physical card, and any extra ones are just $10 each.
Go ahead and spend in over 180 countries with ease, whether online or face-to-face anywhere Mastercard is accepted. Vault’s smart technology plays matchmaker between your transaction currency and the balance in the applicable currency account, cleverly sidestepping those annoying foreign exchange fees. And for the tech-savvy, Vault joins forces flawlessly with QuickBooks and Xero.
From the get-go, you can instantly issue unlimited virtual cards for employees, departments, vendors, and even certain types of expenses – dealer’s choice! Name cards, put caps on spending, and choose how often you’d like those caps to reset. And with Vault, customization is king – restrict spending on certain vendors or block undesired merchants and categories.
Oh, and did we mention the sweetest part? An endless 1% cash back awaits you. Every single card you issue, be it physical or virtual, puts cash back in your pocket with every purchase.
Wise Card – Best for Reliability :
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Wise is a very popular name with a business card that offers some brilliant features. Originally called Transferwise, the company is mainly used by businesses with clients or employees abroad as it has little to no FX fees. Qualifying for the card is easy and applications are typically approved in only a few minutes but the physical card can take a few days to arrive.
The first card is free with no shipping charges. The company currently offers additional cards for free as well. However, expect standard shipping charges on additional cards and a $5 replacement fee.
The Wise card supports online purchases, automated teller machine (ATM) withdrawals, contactless payments, and more. There are, however, limitations. For example, ATM withdrawals are capped at $5,000 per month.
With Wise, you can be in full control of your employees’ spending. You will receive notifications for every transaction and put limits on individual accounts. Plus, it gives the option to freeze and unfreeze accounts. This feature can come in handy when you have existing employees.
One of Wise’s best features is the ability to take out up to $350 in cash for free. This can be a great option for businesses facing cash flow issues.
Very few prepaid business credit cards come with this feature. On the downside, there are no special rewards but it’s still a good option as Wise is registered with the Financial Transactions and Reports Analysis Centre of Canada, making it a safe option.
Jeeves Corporate Card – Best for Cashback Rewards :
Jeeves Corporate Card is another prepaid business credit card that offers some excellent perks. It is very easy to qualify for this card. You only need a registered business with at least $10,000 in monthly revenue. Furthermore, you can get approved if you have secured funding and no personal credit score is required.
The card is technically free to own with no annual or monthly charges and 0% foreign exchange fees. This makes it great for international purchases and companies that have workers abroad. The company doesn’t mention the maximum limit but the minimum is only $1,000.
On the downside, you must repay the amount in full each month. Not doing so could cause you to pay additional fees or have your account suspended. On the plus side, it allows businesses to set individual limits for employees and compare expenses through the expense reconciliation feature.
The card offers cash back on all purchases of as high as 3%. However, there are certain terms and conditions and thresholds. Most purchases will only earn you up to 2% cash back. It offers both physical and up to 100 virtual cards and integrates well with popular accounting tools such as QuickBooks and Xero.
Managing the Jeeves Corporate Credit card is easy thanks to the Jeeves app. It is friendly and comes with the option to click and store receipts. Plus, the card gives access to over 1,200 international airport lounges, making it great for businesses that require employees to travel.
Square Card – Best for Quick Cash :
Annual fee: $0
Card limit: Linked to funds
Spend management: no
Square is used by more than 64 million businesses and now the company is offering Square Card to facilitate these businesses. This is unlike other prepaid business credit cards discussed in this list as this one is linked to sales and is designed to allow businesses to access funds instantly. The card removes waiting times and recurring fees, making it more affordable to use funds.
It can be a great option for businesses that need instant cash. The card is free to get and has no recurring or monthly charges. Moreover, ATM withdrawals are free but third-party charges may apply. We feel this card can be a great option for new businesses as there are no minimum balance requirements.
The card, however, is only for the owner. It does not allow additional or employee cards. Plus, there seem to be no credit requirements. All Square users can request the Square Card through the app. On the plus side, it makes it easier to separate personal and business expenses.
Loop Corporate Card – Best for Online Businesses :
Annual fee: $0
Card limit: linked to funds
Spend management: no
Cash back: 1 point on every dollar spent
Last on the list is Loop that offers cross-border banking for e-commerce. The Loop Corporate Card is suitable for international businesses as it supports four currencies including CAD, GBP, USD, and EUR. This helps remove FX fees as users get the option to repay in their preferred currency.
Like most prepaid business credit cards, the Loop card connects to the ecommerce platform and offers credit limits based on revenue. Furthermore, it offers up to 55 days of interest free purchasing, which is nearly 25 days longer than what the average company offers.
The company is said to be working on a rewards system but currently only has a cash back offer in place. Users can spend 1 point for every dollar spent on all purchases.
Float Credit Card – Best for Employee Expense Management :
Annual fee: $0 for the basic plan, paid plan starts at $99 per month
Card limit: up to $500,000
Spend management: yes
Cash back: 1%
Promotional offer: Get $500 by sign-up with the promo code HARDBACON500
The Float card can be a great pick for businesses due to its various advantages and little to no eligibility requirements. The company mainly targets small and medium businesses and offers a smart spend management system that makes it easier to streamline expenses. Some of its unique features include accounting system integration and receipt capture.
Since it is a prepaid card, your limit will depend on your business bank account balance. The limit has a cap of $500,000, which we think is pretty good. The Basic plan costs $0 per month and comes with the spend management solution, unlimited virtual cards, and accounting software integration. It, however, only supports up to five physical cards.
On the other hand, the Premium plan costs $99 per month and supports unlimited physical and virtual cards. It comes with a free 60-day trial and some exclusive features including Slack integration, team management, and custom exports for tools like Sage, Netsuite, and Freshbooks.
Other than this, both plans are quite similar. You will enjoy 0 percent foreign exchange (FX) fees, 1% cash back, automated receipt capture and matching, and up to a $100,000 transaction limit with automatic reloads.
We think Float is a great pick for new and small businesses as it does not require a personal guarantee. Approval of applications typically happens in just three days and you can even have custom vendor restrictions, names, and credit limits. Moreover, it offers some great perks for businesses in the form of partner discounts and offers.
Businesses can enjoy up to 30% off on Hubspot, receive $1,000 in credits at Notion, and more. Some of the main partners include Deel, OpenPhone, Retool, Intercom, and Amazon Web Services (AWS). You can manage cards and accounts through the web or Float’s very smartly designed app.
The takeaway
You will need a business to be eligible for these cards. Those without a business can consider prepaid credit cards like KOHO and Neo.
