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In a context where Canadians are increasingly looking to maximize their money and points, prepaid cards without foreign transaction fees represent a practical, secure, and economical solution compared to carrying a wad of cash with us when travelling. They not only limit situations of theft or loss but also reduce certain banking fees, notably the 2.5% markup on payments or withdrawals abroad.
To help you make an informed choice based on your needs when you need cash while traveling, and at the best exchange rate, we will analyze three of the most popular prepaid cards in Canada:
A prepaid credit card is a reloadable payment solution that allows you to make purchases online, in-store, or abroad, without using credit (without a credit application, strictly speaking). Unlike a traditional credit card, it is not linked to a line of credit: you must first deposit funds to use it. It generally operates on the Visa or Mastercard networks, ensuring wide acceptance in Canada and worldwide.
Increasingly popular, prepaid cards without foreign transaction fees attract travellers, young adults, and individuals not eligible for a traditional credit card, such as newcomers. These cards are particularly practical for those who wish to better manage their finances, get the best exchange rates, avoid debt, or limit fraud risks. They allow you to spend only the funds available on the card, making them an effective budget control tool. This is convenient for parents who want to budget what their teens spend! However, they do not contribute to building a credit history.
Some prepaid cards also come with mobile applications that allow you to track your expenses in real-time, easily reload the card, and even manage multiple currencies.
Finally, what specifically interests us here is that they can offer very attractive benefits, such as no foreign transaction fees, advantageous exchange rates, and sometimes small cash back on purchases.
The Wise Visa Card (formerly TransferWise) is a prepaid card without foreign transaction fees that is primarily an international tool designed for people who travel, live abroad, or conduct transactions in foreign currencies. It stands out for its low conversion fees and integrated multi-currency system, making it a popular solution for freelancers, expatriates, and travelers. This card operates on the Visa network.
Its operation is simple, requires no bank account, and fees are always displayed transparently at the time of transactions. One of the great advantages of this card is the ability to hold funds in advance. This is particularly useful for travelers who wish to convert their money several weeks or months before departure, to lock in a favorable exchange rate.
Finally, although this solution is not officially promoted by Wise, there is an effective method to avoid fees: by using the email address associated with your Wise account as the recipient, you can set up an automatic deposit and thus send an Interac transfer without fees. Few people know this trick, but it works very well in practice.
For more details, read our guide on the Wise Card to save on withdrawals abroad.
The Wealthsimple Cash Card is a prepaid card without foreign transaction fees Mastercard designed to simplify your daily spending while offering competitive benefits. It is directly linked to your Wealthsimple Cash account, a hybrid account combining the features of a checking and savings account. This card stands out for its lack of foreign currency conversion fees, cash back on your purchases, and seamless integration with the Wealthsimple ecosystem.
It is one of the best prepaid credit cards without foreign transaction fees thanks to its high limits and CDIC protection on funds.
To learn more, read our complete guide to the Wealthsimple Cash account.
The EQ Bank Card is associated with the institution’s online bank account. It is well-suited for Canadians who wish to centralize their savings and spending card in a single interface. Thanks to integrated insurance and the ability to earn interest on the account balance, it stands out for its comprehensive banking dimension.
I also particularly like my EQ Bank account because I benefit from advantageous rates. This is where I deposit my short-term savings for travel, and it’s simple and quick to make transfers to fund this prepaid card without foreign transaction fees for withdrawals abroad. Also, being subject to CDIC rules, just like with Wealthsimple, the amounts in the account are insured up to $100,000.
For more details, consult our article on EQ Bank GIC rates.
Consult our review of the EQ Bank Card for more details.
The choice of a prepaid card without foreign transaction fees primarily depends on your spending habits, financial goals, and lifestyle.
In our case, we use all three cards within our couple, each having its utility. The Wise card is our first choice for withdrawals abroad, particularly due to its low conversion fees and multi-currency capability. As I frequently travel to Japan, I especially appreciate the ability to hold yen directly on the card, which sometimes allows me to take advantage of favorable exchange rates in advance. That said, as we always prioritize credit cards without foreign transaction fees to maximize reward points, our other prepaid cards mainly serve as support 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 is an excellent solution for regular users of the Wealthsimple ecosystem and for those who travel often. For its part, the EQ Bank Card is particularly interesting for EQ Bank account holders, thanks to its competitive interest rates.
In summary, here is an overview to help you choose the prepaid card without foreign transaction fees that best suits you:
Savings this way:
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