Best Prepaid Credit Card In Canada For October 2025
Safe spending – and even some rewards – with top credit card alternatives.
The best prepaid credit card is the Wealthsimple Prepaid Mastercard, offering Canadians the conveniences of a credit card without the stress of credit checks and interest charges.
Prepaid cards are a valuable alternative to traditional credit cards, offering opportunities for Canadian newcomers, students, people struggling with low credit, and many others. They won't and can't help build your credit, but you also don't have to worry about interest charges, annual fees, or credit checks.
Below, you'll find all the information you need on the top prepaid card options in Canada, broken down by their benefits, drawbacks, and key details.
Key Takeaways
- Prepaid credit cards are not credit products as you load the balance in advance of spending it.
- Prepaid credit cards have no income and credit score requirements – and most have no annual fee.
- The biggest downside to prepaid credit cards is the lack of rewards compared to unsecured credit cards.
Best prepaid credit cards for October 2025
Here are our picks for the best prepaid credit cards in three categories:
| Category | Prepaid credit card | Pros | Cons |
|---|---|---|---|
| Best prepaid credit card in Canada | Wealthsimple Prepaid Mastercard | * Earn up to 2.5% interest on your account balance * No annual or foreign exchange fees * Free Canada-wide ATM use | * No more cash back * No insurance included |
| Best no fee, no fx fee prepaid card | EQ Bank Card | * No ATM charges * Earn 3.3% on your prepaid balance * No annual fee | * Low cash back earn rate * No insurance included |
| Best for rewards at multiple retailers | Neo Everyday Account | * No annual fee * Earn 0.1% interest on your balance | * No rewards outside of Neo retail partners * No insurance included |
| Best for building credit | KOHO Everything Mastercard | * Up to 2% cash back on purchases * Earn 4% on your balance * No foreign exchange fees | * Only earns 0.5% cash back on other purchases * No insurance included |
1. Best prepaid credit card in Canada
×1 Award winner 
The Wealthsimple Prepaid Mastercard, our top pick for a prepaid credit card two years in a row, stands out for several reasons: earning interest on your balance, free ATM use, and no FX or annual fees. Individually, these are very valuable features for any type of credit card, but bundled together for a prepaid card? Amazing.
Yes, Wealthsimple did recently get rid of the cash back feature for this prepaid credit card, but it also introduced access to ATMs across the country. Users can now use any banking machine they like and have their fees reimbursed, up to $5 per transaction.
2. Best no annual fee, no foreign exchange fee prepaid card
Frequent travellers might appreciate the EQ Bank Card. You won’t pay any foreign exchange fees or an annual fee to use the card. Plus, you’ll get 0.5% cash back on all purchases – and while your money is sitting there, you'll be earning 3.3% interest on your prepaid balance.
3. Best prepaid credit card to earn rewards at multiple retailers
If you want to be rewarded for your retail shopping habits, check out the Neo Everyday Account. Neo partners with over 10,000 retailers across Canada. When you use your Neo prepaid card at one of these stores, you’ll earn up to 5% cash back.
Neo also guarantees that your other purchases will earn you at least 0.5% and the money that’s sitting in your account will always be earning 0.1% interest.
4. Best prepaid card for building credit
$100 GeniusCash + Up to 2% cash back on purchases + No foreign exchange fees.*
Among this card's many features is the offer of a 50% discount on the Koho Credit Building service (a $5 monthly savings). This monthly payment is reported to credit monitoring bureaus, which can help build your credit score over time. You’ll also get access to your credit score.
The (relatively) high fee for the KOHO Everything Mastercard might make you dismiss this KOHO card, but note that it’s charged out at $14.75 per month. This fee can certainly be worthwhile when you consider that it acts as a hybrid bank account and earns interest on your balance, plus the ability to earn cash back.
How we get our rankings
We analyze 126 features of each credit card in seven main categories. Since we’re ranking prepaid credit cards, we emphasize rewards, followed by fees, perks, and insurance offerings. Then, we run the data through our algorithm to calculate a score out of five – our Genius Rating. We use a monthly spending estimate of $2,000 to evenly compare the value of rewards.
Learn more about our Genius Rating methodology
How prepaid credit cards work
Instead of applying for credit and being offered a card with a credit limit, a prepaid credit card works a little differently.
What is a prepaid credit card?
Prepaid credit cards are still part of the Visa or Mastercard network, but you’ll deposit money into the account before using it. When you make a purchase, the merchant will pull money from the prepaid account.
- A prepaid credit card uses money that you’ve already put into an account – kind of like a debit card.
- A standard credit card doesn’t require you to fund the account first; the card issuer fronts the money and you pay it back by your statement due date (or carry a balance and pay interest on the loan).
Think of it this way: You can't spend more on prepaid cards than what’s in your account. Since a prepaid card isn't a credit product, you won't need a credit check to get one, nor will your credit score be affected in any way. This makes a prepaid credit card a good option if you need to stick to a budget or have poor credit.
How to reload a prepaid credit card
Depending on your card type, you can reload it using your online banking portal or app by transferring funds directly. If you're using a card from an issuer other than your bank, you can use methods like:
- Direct debit
- e-Transfer
- Wire transfer
- Online bill payments
Pros and cons of prepaid credit cards
To help you decide if a prepaid credit card is right for you, consider the following pros and cons:
- No credit card interest: Since you load the card with money before you spend it, you’re not borrowing and will never have to worry about paying 20% or more in credit card interest.
- Earn rewards on purchases: While you might not earn as much as with a standard credit card, the best prepaid credit cards offer cash back on your purchases.
- (Usually) no annual fees: With one exception, prepaid cards have no annual fees – and you always have the option to opt for a lower-tier, no fee version.
- No credit checks: A credit card issuer won’t pull your score for a credit check, and your prepaid card won’t appear on your credit file. This makes a prepaid card a great option for someone who’s struggling with poor credit and might not otherwise qualify for a credit card.
- Minimal rewards: If you’re hoping for great earn rates, you’ll be disappointed – these cards offer some rewards but very little in comparison to the best standard credit cards.
- Few to no perks: Since a prepaid card doesn’t charge interest, it can’t reward cardholders with perks or benefits like travel insurance, discounts, or roadside assistance.
- Doesn’t help credit score: Since they're not credit products, prepaid credit cards won't help you build a credit history or improve your credit score. To do that, you’ll need a secured credit card.
- Won’t be accepted everywhere: Some retailers and service providers may not accept prepaid credit cards as a form of payment.
Credit card expert Patrick Sojka notes that prepaid credit cards aren’t always the right choice. "There are places that will use prepaid cards, but for some purchases, you don't want to use prepaid cards," he shares. “They are not as secure as regular credit cards."
Not all prepaid cards come with deposit insurance or coverage in the case of fraudulent transactions. This can make certain prepaid credit cards less secure and is part of the reason why some service providers don’t accept them.
Why use a prepaid credit card?
Prepaid cards may not be "real" credit products, but there are many times when using a prepaid credit card is a great idea. Here are some common reasons you may want to reach for one:
- You’re trying to budget or watch your spending: With prepaid cards, there’s no danger of spending more than you have (or have budgeted). You’re in control by loading money onto the card, which essentially becomes your spending limit.
- You’re travelling and don’t want to carry cash: Although prepaid cards often charge foreign transaction fees (just like credit cards), you’ll get peace of mind knowing you’re not carrying large amounts of cash.
- You’re young and learning to be financially independent: Prepaid cards are great tools for teaching financial responsibility without the risk of going into debt. Parents can give their teens or young adult children prepaid cards to help them figure out budgeting.
- You frequently shop online: When you shop online, there’s always the risk that your credit card or bank account information could be stolen. By using a prepaid card, you limit the risk of fraud since thieves can't run up a debt with your information.
- You have poor or no credit history: If you can’t qualify for a credit card but want a way to pay for things without cash, prepaid cards are a good option. They don’t build credit, but they can make paying for things easier.
Alternatives to prepaid credit cards
If prepaid cards don’t sound like the right product for you, you’ve got other choices:
- Use a debit card. Like prepaid cards, very few debit cards offer rewards on purchases – but you won’t be able to rack up a balance or overspend.
- Use a secured credit card. If you need to build credit, you can apply for a secured card. You’ll provide a deposit that will be your credit limit, which means you’ll only be able to spend what you can afford. Make your payments on time and in full, and you’ll see improvements to your credit score.
How to get a prepaid credit card in Canada
Before you get a prepaid credit card, you’ll have to meet two criteria:
- Age of majority in your province or territory
- Resident of Canada
That’s it! Prepaid credit card issuers don’t consider your income or credit score as factors that qualify you for a card. As long as you load money to your card in advance, you’re good to go.
What happens when you cancel a prepaid card?
As the Financial Consumer Agency of Canada notes, you can’t really cancel a prepaid card. This is because you’ve already deposited funds into the account. Instead of trying to cancel the card, your best option is to use the card until the balance is zero.
That said, some prepaid card issuers might be willing to cancel your prepaid card. They do this by deducting a fee from the balance before returning the funds to you, so it doesn’t make sense for you financially.
How to choose the right prepaid credit card for you
As always, the best credit card will be one that suits your personal needs.
- Want to earn rewards? Opt for a card that lets you earn cash back on your purchases, like the Neo Everyday Account.
- Need budget and spending control? Look for an institution that offers budgeting tools and spending insights, like KOHO.
- Like to travel? Pay attention to foreign transaction fees and opt for a card that doesn’t charge any, like the EQ Bank Card.
- Looking for interest accrual? Cards like the Wealthsimple Prepaid Mastercard offer up to 2.5% interest alongside solid cash back rewards to get the most out of your balance.
- Need to build credit? Instead of a prepaid card, consider a secured credit card, which is a true credit product and will help you improve your score over time.
FAQ
Which prepaid credit card is best?
The Wealthsimple Prepaid Mastercard is the best prepaid card on the market right now. Cardholders earn interest on their balance, pay no annual fee, and incur no foreign exchange fees, all while enjoying free access to ATMs across Canada.
How long do prepaid credit cards last?
The amount of time a card lasts will vary, but it will always be specified somewhere on the card. Even if your prepaid card expires, you can retrieve any money left on it, though there may be transfer fees.
Does TD have a prepaid credit card?
TD retired its TD Connect card in 2021 and no longer offers unsecured prepaid credit cards. Unfortunately, TD doesn’t offer secured cards either, so you'll need to consider alternative issuers when looking for a secured or prepaid card.
Does a prepaid card hurt your credit?
No, unlike a secured credit card, your prepaid card isn’t tied to your credit score. On the other hand, using your prepaid card responsibly won’t improve your credit score, which isn’t great news if you’re trying to build credit.
Does RBC offer prepaid credit cards?
RBC used to offer prepaid Visas, but the bank discontinued all prepaid credit cards and prepaid gift cards in 2021. If you’re looking for a prepaid credit card, you’ll have to work with a different credit card issuer.
How much does it cost to activate a prepaid Visa card in Canada?
The cost depends on the card itself and the issuer. The best way to check the cost is to read the card’s terms and conditions before buying it. Activation fees are often a percentage of the amount on the card.
Editorial Disclaimer: The content here reflects the author's opinion alone. No bank, credit card issuer, rewards program, or other entity has reviewed, approved, or endorsed this content. For complete and updated product information please visit the product issuer's website. Our credit card scores and rankings are based on our Rating Methodology that takes into account 126+ features for each of 229 Canadian credit cards.
