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.
What is a Cash Back Prepaid Card?
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.
List of Cash Back Prepaid Cards in Canada
- KOHO Prepaid Mastercard
- EQ Bank Card
- KOHO Premium Prepaid Mastercard
- CIBC AC Conversion Card
- STACK Prepaid Mastercard
- Wealthsimple Cash Card
| KOHO Prepaid Mastercard | EQ Bank Mastercard | KOHO Premium Mastercard | CIBC AC Conversion | |
| Best for | Everyday cash back rewards | Earning interest and cash back | Cash back and no FX fees | No FX fees |
| Annual fee | $0 | $0 | $84 | $0 (ATM fees may apply) |
| FX fee | 1.50% | 0% | 0% | 0% |
| Reload options | Interac e-Transfer, direct deposit, debit card | Transfer from EQ Bank savings account | Interac e-Transfer, direct deposit, debit card | Online at aconversion.aircanada.com or via the app |
| Issuer | People’s Trust | Equitable Bank | People’s Trust | CIBC/Air Canada |
| Other perks | Budgeting app, unlimited free e-Transfers, earn interest on your balance | Access to high interest savings, No FX fees when spending abroad, unlimited transactions | Budgeting app, unlimited e-Transfers, earn interest on balance, higher rate cash back, price matching, free financial coaching | – |
| Promotion | Get a $20 bonus with our referral code CASHBACK. Bonus is paid after your first purchase | N/A | $20 bonus | Cash back offer for a limited time |
| Learn more | Apply | Apply | Apply |
Best Cash Back Prepaid Cards in Canada
The best reloadable cash back prepaid credit cards in Canada are:
KOHO Prepaid Mastercard
KOHO Prepaid Mastercard
$20 sign up bonus after first purchase (use promo code CASHBACK)
Earn up to 5% cash back
Up to 4.00% savings interest on your balance
Unlimited Interac e-Transfers
Cash back rewards: Earn 1% cash back on groceries, bills, and services and up to 5% cash back at select retailers. Also, you earn 0.50% interest on your balance.
Annual fee: $0
The KOHO Prepaid Mastercard (Easy) has no monthly or annual fee, and you can apply without worrying about your income level or credit score.
In addition to this card offering real cash back rewards on all purchases, it comes with a free budgeting app.
When you spend 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 the top prepaid card in Canada.
EQ Bank Mastercard
EQ Bank Card
Earn 2.50%* interest on your balance
0.50% cash back on purchases
No monthly account or FX fees
Free ATM withdrawals
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 waived 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.
KOHO Premium Prepaid Mastercard
KOHO Extra Prepaid Mastercard
$20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)
Earn up to 5% cash back
2.00% savings interest on balance
Unlimited transactions, no FX fees
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 2% savings interest on your balance
You can unsubscribe from KOHO Premium and continue to enjoy the basic rewards at any time.
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.
STACK Prepaid Mastercard
Cash back rewards: Variable cash back offers at more than 140 retailers.
Monthly fee: $0 or $7.99 if you don’t spend at least $350 monthly.
The STACK Prepaid Mastercard offers instant cash back at participating retailers. This prepaid card is also great for travelling since it waives FX fees if you meet its spending limits.
STACK includes an app you can use for budgeting and setting savings goals. Learn more about STACK.
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.
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 similar protections to 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
The best prepaid cards in Canada offer cash back rewards.
Vanilla prepaid cards do not offer cash back rewards.
A prepaid card is loaded with money, while a credit gives you access to borrowed money.
Prepaid cards are similar to debit cards; however, a debit card is directly linked to your chequing account.
