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Best Cash Back Prepaid Cards in Canada of Jun 2024

Updated:

Fact Checked

A prepaid card that pays cash back is the exception, not the norm.

If you are looking to spend cash using a debit card and earn rewards at the same time, you will be hard-pressed to find a rewards debit card that’s worth a second look.

However, with the best cash back prepaid cards, you earn something back each time you spend. And the ones on this list also spare you the ridiculous transaction fees at every turn.

List of Cash Back Prepaid Cards in Canada

  1. KOHO Prepaid Mastercard
  2. EQ Bank Card
  3. KOHO Premium Prepaid Mastercard
  4. Neo Money Card
  5. CIBC AC Conversion Card
  6. Wealthsimple Cash Card
KOHO Prepaid MastercardEQ Bank MastercardKOHO Premium MastercardNeo Money Card
Best forEveryday cash back rewards and high savings rates on your depositsEarning interest and cash backCash back and no FX feesCash back and savings interest
Annual fee$0*$0$84$0
FX fee1.50%0%0%2.5%
Reload optionsInterac e-Transfer, direct deposit, debit cardTransfer from EQ Bank savings accountInterac e-Transfer, direct deposit, debit cardBank transfer, Interac e-Transfer to Neo Money account
IssuerPeople’s TrustEquitable BankPeople’s TrustPeople’s Trust
Other perksFree credit checks, budgeting app, unlimited free e-Transfers, earn interest on your balance, access to 0% APR cash advancesAccess to high interest savings, No FX fees when spending abroad, unlimited transactionsBudgeting app, unlimited e-Transfers, earn interest on balance, higher rate cash back, price matching, free financial coachingVirtual card; extra cash back on your first purchases at participating stores, earn interest on your balance
PromotionGet a $20 bonus with our referral code CASHBACK. Bonus is paid after your first purchaseN/A$20 bonus after first purchase$20 bonus after funding with $50 or more and completing your first purchase
Learn moreApplyApplyApplyApply

Best Cash Back Prepaid Cards in Canada

The best reloadable cash back prepaid credit cards in Canada are:

KOHO Prepaid Mastercard

Cash back rewards: Earn 1% cash back on groceries, restaurants, gas and transportation, and up to 5% cash back at select retailers. Also, you earn 5.00% interest on your balance.

Annual fee: $0*

The KOHO Prepaid Mastercard offers instant approval, and you can apply without worrying about your income level or credit score.

In addition to offering real cash back rewards on all purchases, KOHO comes with a budgeting app and access to free credit score monitoring.

When you spend money with the card abroad, you pay a lower 1.5% foreign currency conversion fee than the standard 2.5% transaction fee charged by credit cards.

Overall, the KOHO Prepaid Mastercard is one of the top prepaid cards in Canada.

KOHO Prepaid Mastercard

KOHO Mastercard Prepaid Card 2

$20 welcome bonus after first purchase (use CASHBACK promo code during sign-up)

$0 monthly fee*

Earn up to 5% unlimited cash back

Get 5% savings interest on your balance

Unlimited Interac e-Transfers and debit transactions

Free budgeting app and access to credit building

EQ Bank Mastercard

Cash back rewards: Earn 0.50% cash back on all purchases in Canada and abroad.

Annual fee: $0

The EQ Bank Card is a free prepaid Mastercard you can pair up with one of Canada’s best savings accounts.

To apply for it, open a free EQ Bank Savings Plus Account, fund it, and request a Card from your online banking dashboard.

In addition to offering cash back on all purchases, the EQ Bank Card also pays 2.50% interest on your entire balance, and it waives ATM withdrawal and foreign currency conversion fees – a fee saving of up to 3%.

Combined, the cash back and high savings rate offered by this card make it one of the best prepaid cards in Canada.

EQ Bank Card

eq bank card-img

Earn up to 4%* interest on your balance

0.50% cash back on purchases

No monthly account or FX fees

Free ATM withdrawals

KOHO Premium Prepaid Mastercard

Cash back rewards: Earn 2% cash back on gas, public transit, and restaurant purchases; 0.50% cash back on everything else (and up to 5% cash back at select stores).

Annual fee: $84 (or $9 per month).

The KOHO Premium Prepaid Mastercard is a step up from its entry-level counterpart, with a flat-rate 2% cash back on your gas, restaurant, and transit spending, and 0.50% back elsewhere.

Cardholders also enjoy extra perks, including:

  • Price matching
  • 0% foreign currency transaction fee
  • Access to financial coaching
  • One free ATM withdrawal abroad per month
  • Earn 5% savings interest on your balance

You can unsubscribe from KOHO Premium and continue to enjoy the basic rewards at any time.

KOHO Extra Prepaid Mastercard

KOHO - MasterCard - Premium card

$20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)

Earn 5% cash back

5% savings interest on balance

Unlimited transactions, no FX fees

Free financial coaching

$9 monthly fee

Neo Money Mastercard

Neo Money is your best bet if you are looking to earn cash back on most purchases. The free regular card is adequate for most people.

Cash back rewards: Earn 1% cash back on gas and grocery; an average of 5% cash back at 10,000 partner stores; 0.5% minimum cash back.

Monthly fee: $0 or $4.99 if you subscribe to a Premium account for extra perks (including purchase security, higher cash back rates, credit score monitoring, etc.).

The Neo Money card offers instant cash back at participating retailers. Combined with the Neo Money savings account, you earn interest on your balance. Users also get access to chequing features like Interac e-Transfers and bill payments.

Neo offers an app you can use for budgeting and managing your finances.

Neo Money Account

neo logo

Unlimited 5% average cash back

No monthly fees

1.00% non-promo interest rate paid on balance

Unlimited free transactions

Get a Mastercard for payments online and ATMs

CIBC AC Conversion Visa Prepaid Card

Cash back rewards: Earn 1% cash back for a limited time.

Annual fee: $0

The CIBC AC Conversion Card is a multi-currency prepaid card. It is one of the best prepaid cards if you travel a lot.

This card can hold up to 10 currencies, and cardholders earn 1% cash back on all purchases for a limited time.

Learn more about it in this review.

Wealthsimple Visa Prepaid Card

Cash back rewards: Earn 1% cash back on all purchases.

Annual fee: $0

The Wealthsimple Cash Card is a reloadable prepaid card that pays 1% cash back every time you spend. It is offered by Wealthsimple, one of Canada’s largest online investment firms.

You can use the cash back earned to pay for a purchase or use it to buy stocks or crypto via the Wealthsimple Trade App.

How Cash Back Prepaid Cards Work

A cash back prepaid card refers to a reloadable prepaid card that offers cash back rewards on purchases. For example, the regular KOHO Mastercard pays up to 5% cash back when you shop at some merchants.

That is, if you spend $1,000 at an eligible merchant, you could get up to $50 back.

Standard prepaid cards like the Vanilla Prepaid Visa or Mastercard do not offer similar perks.

Cash back prepaid cards make it easy to enjoy credit card rewards without applying for one.

Benefits of a Cash Back Prepaid Card

A prepaid card that offers cash back means you don’t need to qualify for a credit card before you can earn rewards.

Since many of them are also free, you won’t have to worry about paying hefty annual fees.

Perhaps, more importantly, you are spending cash, so interest fees do not apply.

Lastly, Visa or Mastercard prepaid cards offer protection similar to those of credit cards.

Downsides of a Cash Back Prepaid Card

A prepaid card does not help to improve your credit score. An exception is the optional credit building feature offered by KOHO.

Also, you can only spend money loaded on the card, as prepaid cards do not extend credit to you.

FAQs

Can you get cash back on a prepaid card?

The best prepaid cards in Canada offer cash back rewards.

Can I get cash back from a Vanilla prepaid card?

Vanilla prepaid cards do not offer cash back rewards.

What’s the difference between a prepaid card and a credit card?

A prepaid card is loaded with money, while a credit gives you access to borrowed money.

What is the difference between a prepaid card and a debit card?

Prepaid cards are similar to debit cards; however, a debit card is directly linked to your chequing account.

Best Credit Offers in June 2024

Get the top savings and spending account and stop paying costly bank fees ($20 Bonus)

Save on fees and access unlimited transactions, eTransfers & bill payments.

Get a $20 instant bonus after completing your first purchase.

Earn up to 5% unlimited cash back and up to 5% interest on your balance.

Guaranteed instant approval with any credit score + free budgeting app.

Get this guaranteed approval credit card for any credit score ($25 bonus)

Get an instant $25 welcome bonus.

Earn 5% unlimited average cash back at thousands of locations.

Guaranteed approval for poor and bad credit scores. Takes 3 minutes.

No monthly fees and up to 15% cashback on your first-time purchases.

Stop paying monthly fees with a free chequing account + $400 bonus

Get a $400 cash bonus when you set up a qualifying direct deposit.

Unlimited debits, online bill payments and Interac e-Transfer transactions.

No monthly or annual account fees.

Earn a high interest rate on your savings (6.00% interest rate offer).

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

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