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In many cases, prepaid cards, like the EQ Bank Card, are preferable for those who want to keep tabs on their spending. They work like credit cards, except that they are reloaded and don’t have debt or interest charges.
The EQ Bank Card is a free debit card that comes with no hidden costs associated with using it. The card provides a 0.5% cashback rebate on all purchases and 2.5% interest on any outstanding balances. It is accepted anywhere MasterCard is accepted, including online transactions.
Let’s give a thorough analysis of the EQ Bank prepaid card. We will also discuss why you should get one and its pros and cons. Plus, this guide will explore how to get this card and other alternatives.
What is an EQ Bank Card?
The EQ card that debuted in January 2023 is a prepaid Mastercard. With this card, you can shop in stores, over the phone, or online from anywhere worldwide and get cash back at any ABM in Canada. In addition, you will receive 0.5% cash back on every purchase, allowing you to spend more wisely.
There are no overdraft fees or surprises associated with the EQ card. You can easily save and spend money with this card and an EQ Savings Plus account.
How does EQ Bank Card work?
The EQ card functions like the Mastercard and is helpful in many countries, just like the Mastercard. It allows easy access to funds from Canadian ABMs and also enables smooth in-store and global purchases.
To use this card, you can easily add funds to your EQ card by transferring funds from your EQ Savings Plus Account. After funding your card, you can use it by inserting it into a compatible Canadian ABM and following the on-screen instructions. You can also present the card at any retail point-of-sale terminal that accepts Mastercard.
You can also use this card at any online merchant supporting Mastercard payments during checkout. Simply input your EQ card details, including the card number, expiration date, and security code. Confirm the transaction and enjoy peace of mind with secure digital shopping.
Features of EQ Bank Card
- Free ABM Access: EQ Bank will cover any fees you might have to pay when using an ABM that’s not part of their network in Canada. In 10 school days, your account will get money back, so you don’t have to pay for a money transfer.
- Cash Back on Purchases: With every purchase made using your EQ card, you earn 0.5% cashback. This reflects as a monthly deposit into your card, and it helps amplify your savings.
- Earn Interest on Every Dollar: The money on your card will earn an incredibly cool 2.5% interest rate. Even if you only use your money for important things, it can still increase in value because of compound interest.
- No Foreign Exchange Fees: You don’t have to worry about extra costs when you use your card to buy things in a different currency. Your card pays the Mastercard exchange rate. Unlike other credit cards, prepaid cards require you to pay a 2.5% fee.
- No Hidden Fees: Your EQ card will not incur any fees for foreign transactions, monthly inactivity, or ABM withdrawals within Canada. Only the Mastercard currency conversion rate will be used when purchasing in a different currency, saving you the standard 2.5–3% surcharge.
- Plus if you set up $500/month or more in either direct deposit for your pay or recurring pre-authorized debits on your EQ Bank Card balance, you’ll be eligible for an increased rate of 3.00% for 12 months!
Pros and cons of the EQ Bank Card
While the EQ card has comprehensive features, it also has pros and cons.
Pros of the EQ Bank Card
- Fee-Free ABM Access: The card lets you withdraw money from any ABM in Canada without paying any fees.
- Cash Back Rewards: When you use the EQ card to buy things, you get a reward of 0.5% of your money back.
- No Hidden Fees: Banking with the card is easy, and you don’t have to worry about fees.
- There’s no impact on your credit score. Using the EQ Card will not affect your credit score.
- Don’t incur debt or pay interest. The EQ card is a prepaid card, so you can only spend the money you have loaded onto it. You will never have to worry about paying interest or going into debt.
Cons of the EQ Bank Card
- Unavailable in Quebec: People in Quebec can’t get the card right now. This rule stops people in this province from using all the good stuff that comes with the card.
- Exclusive Load Source: You can only put money on your EQ card from your EQ Savings Account. This rule makes it harder for people who like having more options for where they get money from.
- The maximum load limit is $10,000. You can only load up to $10,000 onto your EQ card. This restriction exists to prevent fraud. However, if you need to load more than $10,000 onto your card, you can do so in multiple transactions.
- Daily ABM withdrawal limit of $500: You can only withdraw up to $500 daily from an ABM using your EQ card.
How to get the EQ Bank Card
You must open an EQ Savings Plus Account to get an EQ card. Put money in your account and ask for your free card. It will come in 5–10 business days after they check and approve your account. Your card will have a separate “account” on your dashboard, which differs from your EQ Savings Plus account.
After you get your card in the mail, you can make it work online by clicking “My Card Has Arrived.” You must put money from your Savings Plus Account into your EQ card. You can immediately start buying things when you put money on a card.
EQ Bank Card transaction limits
Keeping track of your EQ card transactions with these set limits is easy. You can load as little as $5 or as much as $10,000 onto your card anytime. The amount on your card is entirely up to you and can be added anytime.
To simplify tracking your expenditures, EQ allows purchases of up to $5,000 per transaction. Withdrawals from ABMs are limited to a maximum of $500. And you can only take out a maximum of $500 in one day. But remember that some ABM machines might let you take out less money.
You can put up to $10,000 on your card daily and buy things in stores for up to $5,000 daily. And you can take out money from ABMs as often as you want, making it easy to get your money whenever needed. The transaction limits on your EQ Card are easy to understand and follow.
Alternatives to EQ Bank Card
While the EQ card is excellent for some people, it might not be the best bet for everyone. Other alternatives include the Koho Prepaid Mastercard and Wealthsimple Cash Card.
KOHO Prepaid Mastercard
KOHO Prepaid Mastercard is a worthy competitor, offering favourable foreign exchange rates with a 1.5% charge. While both cards provide 0.50% cash back, KOHO collaborates with prominent retailers for enhanced rewards. KOHO accepts transfers from various bank accounts, whereas the EQ card exclusively accommodates funds from EQ Savings Accounts.
Wealthsimple Cash Card
The Wealthsimple Cash card is a new option that offers useful new options for consumers. Customers can choose how they’d like to receive their 1% cash back: cash, cryptocurrency, or stock in a company. With Wealthsimple, you can save or invest your extra change by rounding up your purchases.
CIBC AC Conversion Visa Prepaid Card
If you’re looking for an alternative to the EQ Card, the CIBC AC Conversion Visa Prepaid Card is a great option. While EQ Bank maintains its position with no fees for foreign exchange, the CIBC AC Conversion Visa provides an additional benefit: a competitive exchange rate for ten of the most widely used currencies. While the 1% cash back program on the CIBC card may have an end date, the EQ Card continues to be free and constant.
Conclusion
EQ’s prepaid Mastercard is a good choice for people who want to save money on fees and get rewards when they spend. While there are many benefits, the card also has some challenges, like not being available in Quebec and only being able to load it from an EQ Savings Account.
It’s essential to consider the card restrictions if you must get one. You can also consider alternative options to the EQ card if it doesn’t suit your needs.
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