The 10 Best Prepaid Credit Cards in Canada
We’ve seen a growth in popularity for prepaid credit cards over the last couple of years. From low fees to foreign currencies exchange, prepaid credit cards are a nice alternative to traditional credit cards as we know them. You can also use our credit card comparator for any advance search by filtering among hundreds of options available now.
What are Prepaid Credit Cards?
Prepaid credit cards resemble standard credit cards, but they work like a debit card. Users have to front-load the card first before they can use it for purchases. Banks and other financial institutions issue the cards with the logos of major credit card companies, such as MasterCard, Visa or Discover. However, they sell the cards through independent companies.
Account holders do not have to worry about accruing debt or finance charges. What they have in their account is all they are able to spend. There is no due date or revolving balance to think about.
Since users are not borrowing money when they use a prepaid card, there are no finance charges or interest rates to consider. However, it doesn’t mean that using a prepaid credit card is free. Here are the common fees associated with prepaid credit cards.
- Purchase and activation fees are one-time charges that can range from $0 to $30 or more.
- Reloading fee is assessed for adding funds to the prepaid card account. It varies depending on the bank, from $0 to $5 or more per reload.
- Monthly service, also called maintenance fee, can be as much as $9.95 per month, though some banks issuing prepaid credit cards don’t charge anything.
- Declined transaction fee is charged if the user tries to make a purchase without sufficient funds in his account. Not all prepaid cards charge this fee, so look for one that doesn’t.
- Transaction fees are charged for every transaction prepaid card users make, both online and over-the-counter. The same applies for withdrawals through ATMs. These will either be a percentage of what an individual withdraws, or a set charge.
- Funds transfer fee is a fee charged for transferring funds to another account.
- Inactivity fees are charged if an account is dormant for several months.
List of the 10 Prepaid Credit Cards in Canada
- KOHO Visa
- Stack Prepaid Mastercard
- Mogo Visa Platinum Prepaid Card
- BMO Prepaid Travel Mastercard
- Scotiabank SCENE Prepaid Reloadable Visa Card
- CIBC Smart Prepaid Visa Card
- CIBC Smart Prepaid Travel Visa Card
- Canada Post Prepaid Reloadable Visa and Mastercard
- Vanilla Prepaid Mastercard Visa Card
Below I will explain the various types of Prepaid Credit Cards to Your understanding. Hope you find the solution to your problem in this article.
- KOHO offers one of the best credit cards on the market now. It combines all the advantages of a typical credit card with no interest fees. You can use your credit card everywhere Visa is accepted. You can add the amount of funds you like directly using the Koho app or through e-transfers. KOHO offers 3 different prepaid credit card plans: the “KOHO,” the “KOHO Premium,” and the “KOHO Join.” The “KOHO” plan has no annual fee or account fees. It offers 0.5% cashback on all purchases, plus some extra cashback with some selected merchants.
- Stack Prepaid Mastercard provides you with instant rewards and tools to help you manage your money with no fees and debt. It lets you spend your money anywhere in the world and gain instant cashback across more than 140 retailers. You can enjoy exclusive offers and promotions on everyday purchases. Regardless of where you travel, you’ll receive the best rate in over 150 currencies with no foreign exchange fees or ATM withdrawal fees. By using your STACK Finance app, you can see your weekly spending habits, and get a clear snapshot of your finances. The app also provides instant notifications anytime you spend, send, save, or receive money with STACK. A roundup feature helps you save more money to achieve your savings goal faster. Zero liability protection is available with your prepaid credit card with the ability to freeze your account at any time.
- The Mogo Visa Platinum Prepaid card offers you better control over your spending. It has a unique feature that also helps you reduce your carbon footprint. Mogo helps you reduce your carbon footprint automatically when you spend. One pound of CO2 will be offset for every Canadian dollar you spend on MogoSpend.
- Desjardins Visa. Desjardins also has its version of a prepaid credit card. The Desjardins Prepaid Credit Card Visa has to be connected via a prepaid credit card account used to add your funds directly to your credit card. You can reload your card in three ways. You can transfer funds through AccèsD, which can be accessed by your phone or computer, at one of the Desjardins branches or ATMs, as well as by paying a bill from an account at another financial institution.
- BMO Prepaid Travel Mastercard. The BMO Prepaid Travel Mastercard is a secured payment card loaded with your money. It allows you to reload and make purchases anywhere Mastercard is accepted while still being protected against unauthorized use. This card is a safer option than carrying cash when traveling. The BMO Prepaid Travel secured Mastercard features include zero liability for unauthorized use. You can transfer any amount between $100 and $10,000 CAD. This card has a $6.95 annual fee, with no interest rate for purchases and cash advances.
- Scotiabank SCENE Prepaid Reloadable Visa Card. The Scotiabank SCENE Prepaid Reloadable Visa card lets you load funds anytime and choose how you want to spend them. This card is accepted worldwide for retail or online purchases. Zero liability is included, which protects you from unauthorized use. One unique feature is this card’s reward point system. For every $5 spent, you’ll receive 1 SCENE point. This card can be used as a great budgeting tool. It provides peace of mind when you travel or with young family members. This prepaid credit card has a $10 annual fee, which is deducted a year after the activation date. This card can have a maximum balance of $2,400.
- The CIBC Smart Prepaid Visa Card is a great solution to manage your spending and set a budget while loading your card wherever you go. Load your prepaid card with Canadian dollars from your CIBC chequing, saving, or personal line of credit accounts. Reload it online anytime using the CIBC Banking Centre. You can spend on your terms, using only the money you already have.
- The CIBC Smart Prepaid Travel Visa Card acts as a foreign currency exchange on the go. Just pick a currency and load your card online, through mobile banking, or at any CIBC Banking Centre. You will then receive a fixed exchange rate and help you avoid foreign exchange surprises. The currencies available are USD, Euro, British Pounds, and finally Mexican Pesos.
- The Canada Post Prepaid Reloadable Visa and Mastercard is the ideal card to use for travelling or everyday use like online or in-store shopping. You can purchase it at any Canada Post office and it can be accessed with no credit history or banking information. This card secures your money with a chip and a PIN that isn’t linked to your bank account. You can load your card with funds and use it right away.
- The Vanilla Prepaid Mastercard & Visa card works the same way as a gift card. No PIN is required and the funds inside the card will never expire. The prepaid amount can differ between Mastercard and Visa (Mastercard is available in $25, $50, $60 [3x $20], $100, and $200 denominations, and Visa is available in $25, $50, $75, $150, and $250 denominations). The activation fee varies based on the denomination and the card provider. Refer to the tables below to know the exact activation fee for each card. The Vanilla prepaid cards are available at any Walmart Canada location. Your card will be activated by the cashier during purchase.
What can we possibly conclude about prepaid Cards?
The best credit cards for international trips let you avoid added fees on international transactions, and they also let you earn rewards for each dollar you spend.
To earn as much as you can in rewards, make sure to use your travel credit card for all purchases you can while you travel overseas and at home. In addition to using cards for groceries and gas, you can also see if you can use plastic for daycare, health insurance premiums, kids’ sporting activities and all other purchases you make on a regular basis. For more tips On other Credit Cards, you can visit entitledknowledge.com
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