At a time when Canadians are increasingly looking to maximize their money and their points, prepaid cards with no currency conversion fees represent a practical, secure and economical solution to carrying a bundle of cash around with you when you travel. Not only do they limit the risk of theft or loss, they also reduce certain bank charges, notably the 2.5% surcharge for payments or withdrawals abroad.
In this article, we analyze three of Canada’s most popular prepaid cards – Wise Visa Card, Wealthsimple Cash Card and EQ Bank Cardto help you make an informed choice when you need cash for travel, at the best exchange rate.
When withdrawing money from a foreign ATM or paying with a credit card abroad, always opt for the local currency rather than the converted Canadian dollar amount offered by the machine. Let your no-FX prepaid card, or credit card, do the conversion for you. The rate will be much more advantageous than the dynamic currency conversion offered by these machines, so you won’t fall into this costly trap!
A prepaid credit card is a reloadable payment solution that allows you to make purchases online, in stores or abroad, without using credit (without actually applying for credit). Unlike a traditional credit card, it is not linked to a credit line: you must first deposit funds to use it. It generally operates on the Visa or Mastercard networks, guaranteeing wide acceptance in Canada and around the world.
Increasingly popular, prepaid cards with no conversion fees appeal as much to travelers as they do to young adults or people who don’t qualify for a conventional credit card, such as newcomers. These cards are particularly practical for those wishing to better manage their finances, get the best exchange rates, avoid debt or limit the risk of fraud. They allow you to spend only the funds available on the card, making them an effective budget control tool. This comes in handy for parents who want to budget what their teenagers spend! However, they do not help to establish a credit history.
Some prepaid cards also come with mobile applications that allow you to track your spending in real time, top up your card easily and even manage multiple currencies.
Finally, what’s of particular interest to us here is that they can offer some super-interesting benefits, such as no foreign transaction fees, advantageous exchange rates and, sometimes, some cash back on purchases.
The Wise Visa Card (formerly TransferWise) is a prepaid card with no conversion fees, and is an international tool designed primarily for people who travel, live abroad or make transactions in foreign currencies. It features low conversion fees and an integrated multi-currency system, making it a popular solution for freelancers, expatriates and travelers. This card operates on the Visa network.
It’s simple to operate, requires no bank account, and charges are always transparently displayed at the time of transaction. One of the great advantages of this card is the ability to store funds in advance. This is particularly useful for travelers who wish to convert their money several weeks or months before departure, in order to lock in an advantageous exchange rate.
Finally, although this solution is not officially promoted by Wise, there is an effective way of avoiding fees: by using the e-mail address associated with your Wise account as the recipient, you can set up an automatic deposit and send an Interac transfer free of charge. Few people know about this trick, but it works very well in practice.
For more details, read our Wise Card guide on saving on withdrawals abroad.
The Wealthsimple Cash Card is a prepaid card with no conversion fees Mastercard, designed to simplify your day-to-day spending while offering you competitive advantages. It is directly linked to your Wealthsimple Cash account, a hybrid account combining the functionalities of a checking and savings account. The card features no foreign currency conversion fees, cash back on purchases and seamless integration with the Wealthsimple ecosystem.
It’s one of the best prepaid credit cards with no conversion fees, thanks to its high limits and CDIC protection on funds.
To find out more, read our complete guide to the Wealthsimple Cash account.
The EQ Bank Card is associated with the institution’s online banking account. It is well suited to Canadians who wish to centralize their savings and spending cards in a single interface. With integrated insurance and the ability to earn interest on the account balance, it stands out as a complete banking solution.
I also particularly like my bank account with EQ Bank as I benefit from advantageous rates. This is where I deposit my short-term savings for travel, and it’s quick and easy to make transfers to top up this prepaid card with no conversion fees for withdrawals abroad. Also, being subject to CDIC rules as with Wealthsimple, the amounts in the account are insured up to $100,000.
See our Review on EQ Bank products for more details.
Choosing a prepaid card with no conversion fees depends above all on your spending habits, your financial goals and your lifestyle.
In our case, we use all three cards as a couple, each with its own purpose. The Wise card is our first choice for withdrawals abroad, thanks in particular to its low conversion fees and multi-currency capability. As I frequently travel to Japan, I particularly appreciate the possibility of storing yen directly on the card, which sometimes enables me to take advantage of advantageous exchange rates in advance. That said, as we always prefer credit cards with no conversion fees to maximize rewards points, our other prepaid cards are mainly used as back-up when we reach the limits imposed by Wise.
The Wealthsimple Cash card stands out for its ease of use, immediate cash back and generous withdrawal limits. It’s an excellent solution for regular users of the Wealthsimple ecosystem and for those who travel frequently. The EQ Bank Card, meanwhile, is particularly attractive to EQ Bank savings account holders, thanks to its competitive interest rates.
To sum up, here’s an overview to help you choose the prepaid card with no conversion fees that’s right for you:
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