If you’re looking for the best virtual credit cards in Canada, we’ve got a breakdown of the top options available. You can shop online with complete peace of mind when you use a virtual credit card.
The ability to generate a new card number for each transaction also makes them a convenient online payment method.
Canada’s best virtual credit cards include KOHO, Neo Credit, Vanilla Prepaid Card, and American Express. These cards offer a plethora of perks.
The most important include rewards programs, free annual fees, and protection from fraudulent charges. Therefore, comparing the features and benefits of different virtual credit cards is essential before choosing one.
This article compares and contrasts the best virtual credit cards in Canada. We’ll be looking at their features, fees, and safety perks. After that, we’ll cover the pros and cons so you know what to expect.
You will also receive a step-by-step guide on getting a virtual card in Canada.
What are virtual credit cards, and how do they work?
Virtual credit cards are digital versions of physical credit cards. When making online purchases, they generate unique numbers linked to your main credit card, safeguarding your actual card details from merchants.
These cards ensure secure online transactions, aid spending tracking, and even offer rewards similar to traditional credit cards.
Typically issued by banks or payment providers, the best virtual credit cards are associated with your regular or debit card account. They often feature spending limits aligned with your account balance or company regulations.
Upon request, companies create temporary virtual cards with unique card numbers, expiration dates, and CVV codes, mirroring real cards.
Online purchases involve inputting virtual card details like a genuine transaction. Consider virtual credit cards disposable; they become inactive after use or a designated period.
Best virtual credit card in Canada
There are many virtual credit card options, some superior to others. Here are the 10 best virtual credit cards you can choose from:
KOHO provides an affordable solution for managing your finances. You can earn cashback rewards and avoid account fees with the KOHO Prepaid Mastercard, making it a compelling option for astute consumers.
Features and fees
The KOHO Prepaid Mastercard stands out with its unique features and fee structure:
- No Account Fees: KOHO doesn’t charge any account fees, ensuring you keep more of your hard-earned money.
- Cash Back Rewards: Earn 0.5% cash back on all purchases, providing an effortless way to save while you spend.
- High Cash Back Potential: Select merchants offer the opportunity to earn up to 5% cash back, maximizing your savings potential.
- No ABM Withdrawal Fees: Enjoy fee-free ABM withdrawals, eliminating the worry of additional charges.
- No Card Cancellation Fees: Should the need arise, you can cancel your card without incurring any fees.
For a limited time, take advantage of KOHO’s promotional offer. Use code “COMPAREWISE” when opening an account and purchasing with your KOHO card within 30 days of registration. You’ll receive a $20 cash bonus for both virtual and physical cards.
2. Neo Credit
When it comes to virtual credit cards with generous savings and rewards options, Neo Credit is one of the best out there. Neo Credit is a good option for people who want to save money and get cashback. It’s all about being affordable and giving you good deals.
Features and fees
Neo Credit stands out with its impressive features and transparent fee structure.
- Local Business Partnerships: Neo Financial boasts over 5,000 local business partners, enhancing your opportunities to earn great rewards.
- Cashback Opportunities: Enjoy up to 5% cashback at local and national Neo partners. Earn a remarkable 15% welcome bonus on your initial purchases with Neo Partners. Gain 2% cash back at Shell gas stations and 4% through the Shell app in select provinces.
- Zero Monthly Fees: Neo Bundles have zero monthly, over-limit, and inactive fees, offering a cost-effective credit card option.
- Fraud Protection: Benefit from fraud liability protection that alerts you to suspicious or irregular activities. Freeze your card through the Neo app if you detect any fraudulent transactions.
- Digital Wallet Integration: Seamlessly link your Neo Secured Credit to digital wallets like Google Pay and Apple Pay for added convenience.
Sign up for Neo Credit or Neo Secured Credit for an exclusive $25 welcome offer. Plus, with a Neo Money account, you’ll get an additional $5 sign-up bonus, bringing your total bonuses to $30.
3. Vanilla Prepaid Card
The Vanilla Prepaid Mastercard, offered by Vanilla, combines the convenience of a credit card with the control of a debit card. This card is excellent for those trying to watch their spending because you can not exceed your limit.
Features and fees
These are the key features and fee structure of the Vanilla Prepaid Mastercard:
- Controlled Spending: Enjoy the benefits of a credit card while controlling your spending. You can only spend the funds loaded onto the card, preventing overspending.
- Denomination Options: The card is available in various denominations, offering flexibility in choosing the amount you load onto your card.
- Activation Fee: An activation fee (ranging from C$ 3.95 to C$ 7.95) applies, depending on your card. Once the activation fee is paid, your card is ready for use.
- Foreign Transaction Fee: A 2.5% fee applies to all foreign purchases made in currencies other than Canadian dollars, making it essential to consider for international transactions.
- No Maintenance Fees: Unlike traditional credit cards, the Vanilla Prepaid Mastercard doesn’t charge maintenance fees or penalties. Once activated, usage is free of additional charges.
- Insurance Coverage: Enjoy peace of mind with FDIC-insured balance protection by Bancorp Bank, ensuring your funds are safeguarded even if the card is lost or stolen.
4. American Express
The American Express Business Platinum card is designed to cater to discerning business owners. With its welcome bonus, points accumulation, and travel coverage, this premium card stands out as a powerful tool for business growth.
Features and fees
Explore the standout features and fee structure of the American Express Business Platinum card:
- Points Accumulation: Earn 1.25x the points for every $1 charged to your card. Accumulated points can be redeemed for flights, Amazon.ca purchases, merchandise, gift cards, and transfers to other programs.
- No Points Expiry: Enjoy the flexibility of accumulating points without worrying about expiry as long as your account remains open and in good standing.
- Travel and Business Coverage: Benefit from comprehensive travel and business coverage when using your card, including out-of-province or country emergency medical insurance, travel accident insurance, flight delay insurance, trip interruption insurance, and more.
- Perks of Amex Cardholder: Embrace many exciting perks of being an American Express cardholder, enhancing your business and travel experiences.
New cardholders can earn a substantial welcome bonus of up to 100,000 points, equivalent to a $1,000 statement credit.
This includes 80,000 bonus points for spending $6,000 within the first three months and an additional 20,000 points after 14 months of card membership. This offer provides a powerful start to your journey with the card.
5. Wise Debit Card
The Wise virtual card offers a modern and secure way to manage your spending, whether shopping online, in-store, or travelling.
This digital card exists solely within your Wise account, providing convenience and peace of mind by offering an added layer of security.
Features and fees
The key features and benefits of the Wise virtual card are:
- Real Exchange Rate: Spend using the real exchange rate for online, in-store, and travel transactions, ensuring you get the best value for your money.
- Enhanced Security: Your virtual card is distinct from your physical card, with unique details. Freeze it after each purchase to prevent unauthorized use and easily unfreeze it when needed.
- Multicurrency Support: Hold and manage over 50 currencies simultaneously within the free Wise app. Convert currencies in real time and spend with your virtual card.
- Contactless Payments: Utilize your virtual card with popular digital wallets like Apple Pay and Google Pay, enabling contactless payments worldwide at the real exchange rate.
- Multiple Virtual Cards: Have up to three virtual cards at a time, allowing you to segregate expenses and manage spending effectively.
6. Stack Mastercard
The Stack Mastercard presents a versatile prepaid credit card option with a free virtual card sporting its distinct number.
This card is advantageous for frequent travellers, as it has no annual or currency conversion fees. Its compatibility with multiple mobile wallets adds to its convenience.
Features and fees
Explore the standout features and transparent fee structure of the Stack Mastercard:
- Free Virtual Card: Enjoy the benefits of a free prepaid credit card, including a unique virtual card number.
- No Annual Fee: No annual fees are associated with the Stack Mastercard, enhancing its cost-effectiveness.
- No Currency Conversion Fees: The absence of currency conversion fees is a noteworthy advantage for frequent travellers.
- Mobile Wallet Compatibility: Seamlessly integrate your virtual card with popular mobile wallets like Apple Pay, Google Pay, Garmin Pay, Samsung Pay, and Fitbit Pay.
- Comprehensive Money Account: The Stack app gives you a money account that helps you spend, save, and earn rewards to reach your money goals.
Wealthsimple is renowned for its investment platform. The Wealthsimple cash account comes complete with a prepaid Mastercard, including a virtual version, enhancing convenience and accessibility.
Features and fees
- Prepaid Mastercard: Access your cash account through a prepaid Mastercard, which offers a secure virtual version with distinct credentials. Instantly lock the virtual card from the app if compromised.
- 1% Cash Back or Investments: Enjoy 1% cash back, stock, or crypto rewards, with the option to have rewards automatically invested on your behalf.
- No Foreign Transaction Fees: Spend online and abroad without incurring foreign transaction fees, adding value to international transactions.
- Earn up to 5% Interest: The funds in your Wealthsimple cash account can earn up to 5% interest, allowing your money to grow.
- No Monthly Fees: Benefit from a fee-free account devoid of monthly charges and with no mandatory minimum deposit.
8. RBC Virtual Visa Card
The RBC Virtual Visa Debit Card offers a secure and convenient way to shop online using funds directly from your bank account. With the ability to shop at a wide range of merchants where Visa is accepted, this virtual card allows you to make online purchases easily.
Features and fees
- Online Shopping Freedom: Shop securely at numerous online merchants where Visa is accepted, including popular retailers like Amazon, Uber, iTunes, and Netflix.
- Earn Rewards Points: Make everyday debit purchases with RBC Vantage and earn Rewards points, adding value to your spending.
- Digital Convenience: Instantly activate your Virtual Visa Debit card through the RBC Mobile app, allowing you to access your card credentials whenever needed.
- Financial Control: Pay directly from your bank account, enabling you to maintain control over your finances. Monitor your spending easily and enjoy the convenience of not having a monthly bill.
- Transaction Flexibility: Your Virtual Visa Debit card purchases don’t count toward your monthly account transactions, offering the flexibility to use your card as much as you want.
9. Float Prepaid Business Credit Card
The Float Prepaid Business Credit Card is a really cool way to manage business expenses. It’s like a new solution that changes the game. This card saves time and doesn’t require a credit check. It helps you control your expenses easily.
Features and fees
Prepaid Convenience: Enjoy hassle-free expense management without the need for credit checks. Prepaid functionality ensures efficient spending control.
- Free Plan Benefits: The free plan offers unlimited virtual cards and up to 5 physical cards in CAD or USD, allowing you to issue cards as needed.
- Advanced Plans: Upgrade to paid plans for additional physical cards and advanced features, tailoring the solution to your business needs.
- Flexible Virtual Cards: Create virtual cards for various purposes with easy-to-set and manage spending controls accessible from your dashboard.
- Real-time Overview: Gain instant insights into company spending and track expenses in real time across different team members or categories.
- Seamless Integration: Transactions seamlessly integrate with leading accounting software, streamlining bookkeeping for enhanced efficiency.
10. Sofi Credit Card
The SoFi Credit Card offers a seemingly straightforward 2% cashback feature, but its unique options set it apart. If you’re a SoFi customer, you can use your rewards to invest, save, or pay off certain SoFi loans. This helps you make the most of your benefits in different ways.
Features and fees
- Flexible Redemption: SoFi customers can redeem rewards for investing, saving, or paying down eligible SoFi loans, offering diverse ways to utilize your earned rewards.
- Optimal Redemption Value: Redeeming rewards for paying down a SoFi loan balance yields the best value, with 1 SoFi Reward Point equating to 1 cent. A statement credit redemption is worth 0.5 cents per point.
- APR Reduction: After 12 consecutive on-time payments, the SoFi Credit Card rewards your financial responsibility with a 1% reduction in the APR.
Newly approved cardholders can instantly add the SoFi Credit Card to an eligible digital wallet upon approval, allowing immediate use without waiting for the physical card to arrive.
Pros and cons of virtual credit cards
Like any credit card, the best virtual credit cards have benefits and drawbacks. Here are the pros and cons of using a virtual credit card:
Pros of virtual credit cards
- Enhanced Security: The best virtual credit cards provide a unique number, shielding your details and preventing breaches.
- Overspending Prevention: Prepaid options help control budgets and curb unauthorized spending.
- Convenience for Online Shopping: Streamlined, secure online purchases without physical cards.
- Fraud Prevention: Swiftly freeze or delete compromised card info to halt fraud.
- Ideal for Subscriptions: Easy subscription management through freezing or deletion.
- Accessibility: Extends online shopping benefits to a broader audience.
Cons of virtual credit cards
- Limited In-Person Use: Not suitable for physical transactions or identity verification.
- Returns Inconvenience: Challenges with refunds to virtual cards for returns.
- Subscription Hassles: Card number changes for subscriptions can be tedious.
- In-Person Store Usage: Primarily online, a mobile wallet is needed for in-store.
- Availability: Limited major bank support, reliance on mobile wallets.
What to consider before getting a virtual credit card
While virtual credit cards enhance online security, consider the following to get the best virtual credit card:
- Fraud Monitoring: Regularly check statements for unauthorized activity.
- Online Transactions: Virtual cards excel in online and card-not-present transactions.
- Returns Complexity: Returning items may be complicated due to card number requirements.
- Verification Hurdles: Challenges for later-stage verifications, like car rentals, due to mismatched card numbers.
Best virtual credit cards conclusion
One of the best ways to prevent identity theft and credit card fraud when shopping online is to use a virtual credit card. Several virtual credit card options are available for use when making purchases online.
Some of Canada’s best virtual credit cards include KOHO, Neo Credit, and American Express. Each option has its own special features, security, and rewards you can get. A virtual credit card is an excellent choice to make online shopping safer.
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