5 Best Prepaid Credit Cards in Canada for 2025
A prepaid card, sometimes called a “prepaid credit card”, can serve as a budgeting tool or an easy way to make online or in-store purchases. Some even earn rewards.
Make the most of this widely accepted payment method by learning more about Canada’s best prepaid cards.
Best prepaid cards in Canada
NerdWallet's take
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Rewards breakdown
Rewards breakdownNerdWallet's take
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Rewards breakdown
Rewards breakdownNerdWallet's take
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Rewards breakdown
Rewards breakdownNerdWallet's take
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Rewards breakdown
Rewards breakdownNerdWallet's take
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Card detailsMethodology
BACK TO TOPNerdWallet Canada selected the best prepaid cards based on overall consumer value and their suitability for specific kinds of consumers. Factors in our evaluation methodology include: features specific to prepaid cards (such as minimum and maximum deposit, maximum reload amount in a 24-hour period, ATM access, insurance benefits, digital wallet compatibility, and more); fees (such as annual fees, foreign exchange or conversion fees, among others); reward value (considering any earn rates, reward structures, and other benefits); and the intro offer (assessing any welcome bonus, waived fees, referral programs, and other promotions for new customers. Only reloadable prepaid cards that are available online were considered for this list.
Best Credit Cards in Canada
Compare all different credit cards side-by-side and find out the best card that will meet your need with special perks and benefits
What to know about prepaid cards
Prepaid cards are reloadable spending cards that look like credit cards — but don’t involve borrowing money.
Someone might want a prepaid card because they can be useful for making in-person and online purchases when you don’t have — or can’t get approved for — a traditional credit card or bank account. Prepaid cards don’t charge interest, so they won’t add to your overall debt load.
What can I do with a prepaid card?
Every prepaid card is different, but you can typically use one to:
Spend pre-loaded funds.
Pay bills.
Send e-Transfers.
Earn cash back (with select cards).
Track your spending using an app or dashboard.
Receive direct deposits, like paycheques or benefits.
What can’t I do with a prepaid card?
Prepaid cards have limitations. They generally:
Won’t impact your credit score or appear on your credit report.
Don’t earn rewards points or travel miles.
Lack built-in insurance coverage.
Don’t offer a credit line or revolving balance, so you can’t borrow funds or carry a balance.
Who is a prepaid card best for?
A prepaid card can be practical for many different people, including:
Those who are can't obtain a traditional credit card, or are struggling to qualify for one, due to their credit history.
Newcomers to Canada who may be ineligible for a traditional credit card and have yet to set up a Canadian bank account.
Kids or teens who aren’t old enough for a credit card or bank account — but want to practice budgeting their money — may also benefit from a prepaid card.
How to compare your prepaid card options
When choosing a prepaid card, keep the following features in mind. They can vary widely between providers.
Network. Some merchants do not accept cards from all networks (Visa, Amex or Mastercard, for example), so choose a card that works where you shop most.
Fees. Watch for monthly, activation, reload, foreign exchange and ATM fees — these vary by card.
Limits. Many prepaid cards have daily load, spending, cash withdrawal and transaction limits.
Loading options. Check how you can load funds — commonly, that will be in-person, online or through an app — and choose a card that makes the process convenient and quick.
Rewards. A few prepaid cards earn basic rewards, such as cash back.
Direct deposit. Some allow direct deposits, so your paycheques or other payments can go straight to your card.
Payment options. Certain cards let you pay bills, send Interac e-Transfers, use foreign currencies, or transfer money to others, similar to a mobile payment app.
Security features. Look for enhanced security features like chip-and-PIN or the ability to freeze your card. Gift cards typically lack these protections.
Spending insights. Some fintech or online-only bank-issued cards provide spending insights or budgeting tools to help boost your money management skills.
Virtual use. Many fintech prepaid cards include a virtual card (usually in the app) and support digital wallets like Google Pay.
Frequently asked questions
What is a prepaid credit card?
What is a prepaid credit card?
Prepaid credit cards aren’t technically credit cards — you’re not borrowing any money. Instead, prepaid cards function similarly to debit cards and gift cards because you can only spend the money you already have. Prepaid cards are also sometimes called “reloadable credit cards” and “pay-as-you-go” cards.
How do prepaid cards work?
How do prepaid cards work?
You don’t borrow money — instead, you load funds onto a prepaid card and then use it to make purchases. Your spending limit is determined by how much money you load onto the card.
Once you’ve added funds to a prepaid card, you can use it to make online and in-person purchases wherever the card’s payment merchant (Visa, Mastercard or American Express, for example) is accepted.
What are the different types of prepaid cards?
What are the different types of prepaid cards?
The two primary types of prepaid cards include:
Closed-loop cards are preloaded with a fixed amount (like a store gift card).
Open-loop cards are reloadable and can be used anywhere the card’s payment network is accepted.
Prepaid cards can be further categorized by network or purpose:
Mastercard. Prepaid Mastercards can be used everywhere Mastercard is accepted, including Costco, which does not accept Visa and American Express for in-store purchases.
Visa. Prepaid Visa Cards can be used anywhere Visa is accepted. Visa also makes gift cards, which are sold (and accepted) at many retailers.
American Express. Prepaid Amex Cards come in set amounts and usually cannot be reloaded. You can only use them at merchants that accept American Express.
Travel. Prepaid travel cards are generally reloadable and may hold multiple foreign currencies or offer travel perks. With multi-currency cards, you lock in the exchange rate upfront to avoid carrying different physical currencies. Some also allow you to withdraw funds at foreign ATMs and limit foreign transaction fees.
Gift card. Prepaid gift cards can be tied to a specific merchant or network of retailers, or issued as a general-purpose Visa, Mastercard or Amex card. Most are not reloadable.
How do you use a prepaid card?
How do you use a prepaid card?
To use a prepaid card, you must:
Activate your card. Most prepaid cards become active once funds have been loaded, though some may require registration before activation.
Check your card’s balance. Balances are usually available through a website or mobile app.
Reload your card. You can typically reload funds using an app, your online account, or an Interac e-Transfer. Some cards let you reload your balance at select locations, like a post office. You may be able to transfer the balance of one gift card to another if they’ve been issued by the same merchant.
Where can you buy prepaid cards?
Where can you buy prepaid cards?
Online banks and credit unions often offer prepaid cards, which tend to carry more features, like rewards and spending insights. Applications are usually completed online in just a few minutes. The physical card is shipped to your address, and if the card has a virtual option, you typically get instant access to the virtual version.
You can also buy prepaid cards with fixed spending at many grocery stores, drug stores, and gas stations.
How much does a prepaid card cost?
How much does a prepaid card cost?
Closed-loop cards (like gift cards) typically don’t have ongoing fees — you pay only the amount loaded onto the card. Though, some may charge a one-time flat-rate activation fee.
Open-loop cards, on the other hand, may charge activation, reload, monthly or annual fees — even if you don’t use the card regularly.
What are the pros of prepaid cards?
What are the pros of prepaid cards?
No overspending. Because you load money onto the card in advance, you can’t spend more than you have. Just make room in your budget for the cash you plan to spend.
Safer than cash. If you lose the money in your wallet, it’s usually gone — but some prepaid cards offer balance protection or recovery features. Unlike debit cards, which are linked to your bank account, prepaid cards aren’t connected to your personal funds — which can reduce risk if your card is lost or stolen.
Convenient to reload. You can usually reload funds in person, online, or through a mobile app.
What are the drawbacks of prepaid cards?
What are the drawbacks of prepaid cards?
No credit building. Since prepaid cards aren’t credit cards, your credit score won’t improve just by using them unless the provider offers a credit-building program.
Limited rewards. While some prepaid cards give you cash back, don’t expect the extra perks that come with traditional credit cards, like travel insurance and mobile device protection and airport perks.
Potential fees. Some prepaid cards have activation and monthly fees that can eat into your balance over time.
What are some alternatives to prepaid cards?
What are some alternatives to prepaid cards?
Debit cards — both physical and virtual — give you direct access to your chequing account. Just be wary of how much you’re spending — you might run through your entire cash supply quicker than you think.
Secured credit cards work like traditional credit cards but require a refundable security deposit to open (and this deposit usually becomes your credit limit). Unlike prepaid cards, secured cards report to credit bureaus and can help you build your credit score. See our picks for the best secured cards in Canada.
Credit cards for building credit are another option. These unsecured cards are designed for people with low scores or limited credit history. Like secured cards, they can help you improve your credit over time — as long as you use them responsibly and pay your balance on time. If you’re ready to take that step, check out our picks for the best cards for bad or limited credit in Canada.
What does Reddit say about prepaid cards?
What does Reddit say about prepaid cards?
As of this writing, Redditors suggest that some of the best prepaid cards come from issuers like Wealthsimple, EQ Band and Neo Financial — all included in our top picks.
However, feelings are mixed on KOHO, largely due to reports of poor customer service.
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