Do you want cash rewards? Who doesn’t? If you have a balance on your credit card and don’t have the funds to pay it off all at once, then an alternative is to use cashback prepaid cards. These cards are a great way to save money, especially if you’re buying clothes or electronics because the rewards are typically 5-10% back. You can also get a percentage rebate on gas purchases, saving you lots of money when filling up your vehicle.
The prepaid card industry has been booming recently, with companies offering many benefits and features. When you sign up for the card, the bank provides a code that can be used to make new purchases or cash back on your previous purchases.
For example, you can earn rewards or travel points simply by using one of the many cashback prepaid cards today.
What Are Cash Back Prepaid Cards?
With the advent of new technologies, more consumers are taking control of their financial future. Cash-back prepaid cards are an excellent option for anyone looking to take just a little bit more control over their finances and limit their exposure to high finance charges.”
A cashback prepaid card is a debit or credit card that allows you to earn cash back, “a percentage of every dollar spent on your card”. The cards are popular because they allow consumers to spend money for goods and services just as they would with a plastic credit or debit card.
They are prepaid reloadable cards with cashback incentives for each purchase you make. For instance, when you shop at certain retailers, the standard KOHO Mastercard offers cash back rewards of up to 5%.
Cash-back prepaid cards are a popular alternative to credit cards because they provide consumers with the protection that comes with having cash on hand while still allowing them to pay off their purchases in full each month and earn some money with the help of rebates and rewards.
A prepaid cashback account is precisely what it sounds like; you have an account that you can use anytime you need it. You decide how much money you want to deposit into your account, and you can pay for anything without incurring an interest payment.
The best cash-back prepaid cards in Canada feature different types of rewards. Some cards offer cash back, and some offer other rewards, like merchandise or travel points. However, with so many options, which is the best buy?
This article is a tour of the best cashback prepaid cards in Canada in August 2022. It will cover their benefits, sign-up bonuses, rewards, and cashback offers.
List of the Best Cash Back Prepaid Cards
KOHO Prepaid Mastercard
KOHO Premium Prepaid Mastercard
Wealthsimple Cash Card
CIBC AC Conversion Card
SimplyCash Preferred Card from American Express
STACK Prepaid Mastercard
Rogers World Elite Mastercard
Best Canadian Prepaid Cashback Cards in August 2022
1. KOHO Prepaid Mastercard
The KOHO Prepaid Mastercard provides the most rewarding value out of all the prepaid cards discussed in this article.
KOHO is a free-spending and savings account that allows you to earn interest on your total balance while receiving quick cash back.
You can use this card to make purchases wherever Mastercard is accepted, both online and in physical stores. Fortunately, you can apply for this Prepaid Mastercard without considering your income level or credit score, and there are no monthly or annual fees.
Their offers include;
A $20 welcome bonus after the initial purchase (after using promo code ‘CASHBACK’ during sign-up)
Cash rewards:0.5% to 2% cash back at any time
20 percent savings interest is applied to your balance.
Interac e-Transfers without limits
Annual cost: nothing
This card has a free cash spending and management app and genuine cash back incentives on all transactions.
Additionally, compared to the typical credit card transaction price of 2.5%, you pay a cheaper 1.5% international currency conversion fee when using the card abroad.
2. KOHO Premium Prepaid Mastercard
KOHO Premium is a bit like the standard KOHO prepaid card. The premium edition, however, goes a step further and offers various added features and advantages.
Compared to its entry-level equivalent, the KOHO Premium Prepaid Mastercard offers a flat-rate 2% cash back on purchases made at restaurants, gas stations, and public transportation, as well as a 0.50% cash back everywhere.
With this card, you earn 2% cash back on purchases made for gas, transportation, and restaurants; 0.50% cash back on all other purchases; and up to 5% cash back at some retailers. They also cost an annual fee of $84 (or $9/month).
Additionally, cardholders get additional benefits like:
0% foreign currency transaction charge for price matching.
Available financial counseling.
One free international ATM withdrawal each month.
3. Scotiabank Gold American Express Card
When it comes to getting cash back on everyday spending, the Scotiabank Gold American Express Card can’t be beaten.
Its benefits include:
The Annual Fee is $0 for the first year and $120 after that.
Spend $1,000 in the first three months and get 20,000 Scene+ points.
Spend $7,500 in the first year and get an extra 20,000 Scene+ points.
Get 1 Scene+ point for every five you spend on groceries, restaurants, and entertainment.
Also, you can earn 1x3x Scene+ points on gas, public transportation, and certain streaming services.
No fees for foreign transactions
You’ll get 5% back on any restaurants and groceries purchases, which is the highest rate you can get on any card. You’ll also get a strong 3% earn rate on gas, public transportation, streaming services, no foreign exchange fees, and all the other benefits of having an American Express card.
With this card, you can easily use the Scotia Rewards points you earn to book travel, buy things, get gift cards, and more. Additionally, it currently gives a welcome bonus of 40,000 Scotia Rewards points worth $400, so now is a great time to apply for one.
4. Wealthsimple Cash Card
This free reloadable Visa card offers 1% cash back on every purchase. Additionally, all users of the free money transfer app Wealthsimple Cash App, which lets you claim your Dollar, like the Cash App in the United States, can easily do it.
You may also use the cash back you earn to make a purchase or to buy stocks or cryptocurrency using the Wealthsimple Trade App.
Added advantages and offers of the Wealthsimple Cash Card include:
Allows you to send money to contacts on your contact list as quickly as possible.
Without monthly account fees.
Free deposits and withdrawals.
Easily add the card to the digital wallet of your choice (Apple and Google Pay).
5. CIBC AC Conversion Card
The CIBC AC Conversion Card is a unique prepaid travel card containing up to ten currencies. This Visa Prepaid Card uses cutting-edge chip and PIN security to reduce any acts of fraud and theft, In addition, it offers protection against the unlawful use of cards or account information as well as emergency cash services and card replacement services.
Furthermore, whether you’re dining locally, buying online, or on vacation abroad, the card can be used for any occasion. This prepaid card is also highly recommended if you are the type that travels frequently. The card also gives you a 1% cash back on every purchase you make for a limited time.
Additionally, the card is free to order, load, and use, and there are no conversion costs when you make a purchase. There is no annual fee, and up to 10 currencies can be loaded at once through the app.
6. SimplyCash Preferred Card from American Express
SimplyCash Preferred Card from American Express offers 2% cash back with all purchases. Although most cards have greater category rates, this card is unmatched in every other way.
The annual charge for this card is a relatively affordable $99 each year. You’ll find it difficult to find a premium card with a base earn rate this high at a lower cost when compared to other premium cards that cost $120 or more.
Offers and rewards:
Get 10% cash back on your first $4,000 purchases for the first three months.
Earn 2% cash back on any purchases after that.
Spend $4,000 during the first three months and get a $100 statement credit.
For referring family and friends, receive a cash bonus.
Annual Fee: $99
7. Stack prepaid Mastercard
Firstly, Stack Prepaid MasterCards allows you to get a percentage cashback right away at stores that accept their cards. A stack prepaid card is also great for traveling because you don’t have to pay any FX fees when you spend enough using the card.
Its features and offers include the following:
No fees for changing money from another country (spending limits apply though)
ATM withdrawals are free (STACK does not charge a fee)
Cashback rewards Offer different amounts of cash back at more than 140 stores.
Annual Fee: $0
Free money transfers from STACK to STACK
Fee per month: $0
Interac e-Transfer, Visa Debit, Direct Payroll Deposit, Canada Post
$5 sign-up cash bonus when you deposit at least $300 into your new account.
8. Rogers World Elite Mastercard
Even though some cards have better category earn rates, there’s no better choice for someone who wants to spend money smartly.
On everything you buy with the card, you get 1.5% cashback. This rate is the standard for other World Elite Mastercards, but the Rogers World Elite is better because it doesn’t charge an annual fee.
Benefits Of A Cash Back Prepaid Card
This is one of the best benefits of a cashback prepaid card. Because you don’t need to apply for credit and affirmatively give permission for purchases to be made, you can use this card just like a debit card. You don’t need to carry cash or sign for purchases, either. All you have to do is swipe your card and enter your PIN.
2. Regular Cash Backs:
Another great benefit is that these cards provide cash back on every purchase you make with them. If you use this card at grocery stores and gas stations, you’ll get a percentage back on those everyday items that are necessities for everyone in your family.
3. Referral earnings:
These cards can also give away money each time you refer someone to the sign-up for the card, and they choose to become a cardholder. This is one of the best ways to get cash back because it’s easy and free.
Another advantage of using a cashback prepaid card is that it is more secure than carrying cash, and you always have complete control over your funds. You do not have to worry about someone stealing your money or using your debit card information.
5. Budget planners:
It’s great for sticking to a budget because, unlike a credit or debit card, you put money on it before you use it instead of paying for it afterward. This makes it harder to go overboard. They are a good choice for your first rewards credit card because of this.
Problems with the Cash Back Prepaid Cards
Your credit score won’t rise due to using a prepaid card. The optional credit-building feature provided by KOHO is the only exception.
Additionally, because prepaid cards do not grant you credit, you can only spend the money loaded onto the card.
If you are in Canada, I suggest you sign up for one of these prepaid credit cards. They are all great companies with excellent options and bonus offers. You will also be a part of a network that protects you against identity theft and fraud.
Furthermore, it’s difficult to predict how long the lifespan of any prepaid card will be. However, so long as you’re aware of how much cash back it offers and the benefits of a particular prepaid card, you can rest easy knowing that there’ll always be an option for purchasing your favorite prepaid cards.
Thanks for reading! Please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.