Prepaid cards occupy a unique space in the Canadian financial ecosystem — they provide the convenience of card payments without the risk of debt or credit score impact. For Canadians who've been declined for credit, are rebuilding their finances, want to control spending, or simply prefer not to carry credit card debt, prepaid cards offer a legitimate and increasingly feature-rich alternative. This guide compares KOHO, Stack, Wealthsimple Cash, and other top Canadian prepaid options for 2026.
KOHO — Canada's Most Popular Prepaid Visa
Earn cashback, earn interest on your balance, and manage your money with KOHO's powerful app. No credit check required.
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Top Prepaid Cards in Canada — Comparison
| Card | Cashback | FX Fee | Interest on Balance | Monthly Fee |
|---|---|---|---|---|
| KOHO Free | 1% groceries/transport | 1.5% | Up to 5% (Earn tier) | $0 |
| KOHO Premium | 2% groceries/dining; 0.5% other | 0% | Up to 5% | $9/mo |
| Wealthsimple Cash | 1% on all purchases | 0% | 4% on balance | $0 |
| STACK Mastercard | Up to 10% at partners | 0% | None | $0 |
| Koho Metal | 2% on all purchases | 0% | Up to 5% | $19/mo |
KOHO — Best Overall Canadian Prepaid Card
KOHO has become Canada's leading prepaid Visa, combining everyday spending rewards with savings features. The free tier earns 1% on groceries and transportation, pays up to 5% interest on balances (on the Earn tier — current rate as advertised), and provides a virtual card for online shopping security. No credit check is required — anyone with a Canadian address can open a KOHO account.
KOHO Premium ($9/month) upgrades to 2% on groceries and dining, zero foreign transaction fees (saving 1.5% on international purchases), and a physical metal-style card. The fee pays for itself if you spend $600+/month in eligible categories (2% × $600 = $12 — more than the $9 fee) or make over $600/month in foreign currency purchases (0% FX saves $9+ vs 1.5%).
KOHO also offers a Credit Building product — a secured credit facility that reports to credit bureaus without requiring a traditional credit card application. Ideal for newcomers to Canada and those rebuilding credit history.
Wealthsimple Cash — Best for Simple 1% Everything
Wealthsimple Cash earns 1% cashback on all purchases with no annual fee and no foreign transaction fee. The cashback is deposited in Wealthsimple Cash tokens (1 token = $0.01 CAD), redeemable toward purchases. The card integrates with Wealthsimple's investment accounts, making it ideal for Canadians already using Wealthsimple Invest or RRSP/TFSA accounts. The 4% interest on balance is competitive for a no-fee option.
STACK Mastercard — Best for Partner Cashback
STACK (now part of National Bank group) provides up to 10% cashback at hundreds of partner merchants across Canada. The base rate is 0%, but at partner retailers the earn can be exceptional. The card charges no foreign transaction fees and no monthly fees. Best for dedicated bargain hunters who shop at STACK's partner network regularly.
KOHO vs Traditional Credit Cards
| Feature | KOHO (Prepaid) | Traditional Credit Card |
|---|---|---|
| Credit check required | No | Yes |
| Debt risk | None (prepaid) | Yes (spend on credit) |
| Builds credit history | Only with KOHO Credit Building | Yes |
| Cashback/rewards | Yes | Yes (often higher rates) |
| Virtual card | Yes | Some cards |
| FX fees | 1.5% free; 0% premium | 2.5% most; 0% select cards |
Use Cases for Prepaid Cards
- Newcomers to Canada: No credit history? Start with KOHO while building credit through traditional channels.
- Students: Control spending without debt risk during school years.
- Seniors: Simple, no-debt-risk payment option with cashback.
- Online shopping: Use KOHO's virtual card for added security on unfamiliar websites.
- Travel: KOHO Premium's 0% FX fee saves on international purchases.
- Budget management: Load only your budgeted amount — spending is impossible beyond your balance.
Best Prepaid Card by Profile
- Best overall: KOHO Free (cashback + interest + no fee)
- Heavy grocery/dining spender: KOHO Premium (2% categories, 0% FX)
- Simple 1% on everything: Wealthsimple Cash (1%, no FX, integrates with Wealthsimple)
- Partner cashback hunter: STACK Mastercard (up to 10% at partners)