Prepaid cards are the best option for Canadians who can’t qualify for a traditional credit card — newcomers, teens, or anyone rebuilding credit after a rough financial period. You load money onto the card and spend only what you’ve loaded, which makes overspending impossible. The trade-off is lower rewards (0.5–2% vs 1–5% for traditional credit cards) and the fact that most prepaid cards don’t build credit. The exception is KOHO, which offers an optional credit-building feature that reports to Equifax — making it the only prepaid card in Canada that can improve your credit score.
Monthly fees, cashback rates, and plan features below are confirmed as of August 2026 — verify current terms directly with each provider (koho.ca, wealthsimple.com, stackedmarket.com) before signing up, as prepaid card fee structures change periodically.
Best Prepaid Cards Compared
Card
Network
Cashback
Monthly Fee
Credit Building
Best For
KOHO Essential
Visa
Up to 1%
$0
Optional ($10/mo)
Best free option
KOHO Extra
Visa
Up to 2%
$9/mo
Included
Cashback + credit building
KOHO Everything
Visa
Up to 5%
$19/mo
Included
Maximizing rewards
Wealthsimple Cash
Visa
1%
$0
❌
Investment ecosystem
Stack Prepaid
Mastercard
Limited offers
$0
❌
No FX fees (travel)
CIBC AC Conversion Prepaid
Visa
Aeroplan miles
$0
❌
Travel points
Mogo Visa Platinum Prepaid
Visa
2% bitcoin cashback
$0
Optional
Crypto rewards
Neo Money
Mastercard
Up to 5% at partners
$0
❌
Neo ecosystem users
Canada Post MyMoney
Visa
None
$4.95/mo
❌
Cash reloading without a bank account
KOHO
KOHO is the clear leader in the Canadian prepaid space because it combines cashback, savings interest, and optional credit building in one card. The free Essential plan is a solid starting point at 0.5% cashback and partner offers up to 5%. Upgrading to Extra ($9/month) adds credit building and 3% savings interest, while Everything ($19/month) pushes cashback to 2% and savings interest to 5%. The credit building feature works by reporting a small monthly subscription payment to Equifax, similar to a secured card but without tying up a deposit.
Plan Comparison
Feature
Essential ($0)
Extra ($9)
Everything ($19)
Cashback (purchases)
0.5%
1%
2%
Partner cashback
Up to 5%
Up to 5%
Up to 5%
Savings interest
0.5%
3%
5%
Credit building
$10/mo add-on
✅ Included
✅ Included
Price matching
❌
✅
✅
Instant e-transfer cover
❌
❌
✅
Network
Visa
Visa
Visa
Pros and Cons
Pros
Cons
No credit check
Cannot be used for all pre-authorized payments
Automatic savings features
Lower cashback than traditional credit cards
Credit building option
ATM fees apply ($1.50 or with plan)
Partner cashback up to 5%
Some merchants may not accept prepaid
CDIC-protected deposits
Wealthsimple Cash
Feature
Details
Cashback
1% (5% first month, Premium users higher)
Monthly fee
$0
Savings interest
4% (on Cash account)
Network
Visa
Foreign exchange fee
1.5% (0% for Premium)
Credit building
❌
Best for
People already in Wealthsimple ecosystem
Stack Prepaid Mastercard
Feature
Details
Cashback
Through partner offers only
Monthly fee
$0
Foreign exchange fee
0%
Network
Mastercard
Credit building
❌
ATM withdrawals
$0 (at select ATMs)
Best for
International purchases and travel
Prepaid vs Secured vs Regular Credit Card
If your goal is to build credit, a secured credit card is usually the better choice over a prepaid card because all secured cards report to the credit bureaus automatically. A prepaid card like KOHO can build credit too (with the paid add-on), but a secured card gives you a real credit limit and a traditional credit history that looks better on your report. If you just need a card for budgeting or online purchases and don’t care about credit building, prepaid is simpler and has no interest charges.
Feature
Prepaid Card
Secured Credit Card
Regular Credit Card
Credit check
❌ None
Sometimes minimal
✅ Full check
Builds credit
Usually no (KOHO optional)
✅ Yes
✅ Yes
Spending limit
Based on loaded funds
Based on deposit
Based on creditworthiness
Annual fee
Usually $0
$0-$75
$0-$170+
Interest charges
None (prepaid)
19-22%
19-22%
Rewards
Limited
Minimal
1-5% cashback/points
Best for
No credit history, budgeting
Building/rebuilding credit
Established credit
Who Should Use a Prepaid Card?
Situation
Why Prepaid Works
No credit history (newcomer)
No credit check required
Rebuilding credit
Can pair with KOHO credit building
Teenagers (13+)
Parental controls, budgeting
Budgeting discipline
Can only spend what you load
Online purchases (security)
Limited exposure if compromised
International travel
Stack has 0% FX fees
No bank account yet
Can receive direct deposits (KOHO, Wealthsimple)
Fees Comparison
Fee
KOHO Essential
Wealthsimple Cash
Stack
Monthly fee
$0
$0
$0
ATM withdrawal
$1.50
$0 (some)
$0 (some)
FX fee
1.5%
1.5%
0%
e-Transfer (send)
$0
$0
$0
e-Transfer (receive)
$0
$0
$0
Inactivity fee
$0
$0
$0
Replacement card
$5-$10
$0
$5
How to Choose
Priority
Best Card
Best cashback (free)
KOHO Essential
Best cashback (paid plan)
KOHO Everything
Build credit with prepaid
KOHO Extra or Everything
Best for travel (no FX fees)
Stack
Best savings interest
Wealthsimple Cash (4%)
Best for teens
KOHO (age 13+)
Best overall ecosystem
Wealthsimple Cash (investing + banking)
The Bottom Line
KOHO Essential is the best free prepaid card in Canada, and KOHO Extra is the best option if you want to build credit without a traditional credit card. If you travel internationally, Stack’s 0% FX fee makes it the best prepaid travel card. Once your credit is established, graduate to a real credit card for higher rewards and better purchase protection.