The Best Canadian Prepaid Credit Card for Travel in 2025

Planning your next adventure? Let's talk about a travel companion you might not have considered yet: prepaid credit cards for travelling.

When you're exploring new destinations, the last thing you want is to worry about overspending or coming home to a mountain of debt. That's where prepaid cards for travel shine. By loading only what you plan to spend, you create a natural spending boundary that keeps your vacation budget in check.

Unlike traditional credit cards that let you spend now and worry later, prepaid cards limit you to the funds you've already loaded. This simple difference can transform how you experience travel.

1. KOHO Prepaid Mastercard

When you're exploring cobblestone streets in Europe or bargaining in bustling Asian markets, the last thing you want is financial stress. KOHO's Prepaid Travel Card features were designed by travellers, for travellers:

Travel Perks You'll Actually Use

• No foreign transaction fees means what you see is what you pay—no surprise charges when converting currencies*

• Free international ATM withdrawal monthly gives you easy access to local cash without the typical banking headaches

• Quick card security lets you instantly lock your card through the app if it goes missing

• Zero liability protection from Mastercard ensures you're not on the hook for unauthorized purchases

• Up to 2% cash back continues even when you're abroad—on groceries, restaurants, and transportation

• Bonus cash back with travel partners like Expedia, Booking.com, and Contiki helps you save even more

Comprehensive Travel Insurance Coverage

Your adventures are protected with coverage that includes:

• Emergency medical services for those unexpected health issues that can happen anywhere

• Trip cancellation & interruption protection when plans change unexpectedly

• Accidental death & dismemberment coverage for peace of mind

• Lost or damaged baggage protection for your belongings

• Rental car protection so you can explore with confidence

Download the KOHO app today and open an account online in minutes. Your next adventure awaits—with more savings, better protection, and zero financial surprises. Because the best souvenirs are memories, not unexpected fees.

2. Wise

What sets Wise apart is how it handles multiple currencies. Unlike most prepaid options that convert your money at less-than-ideal rates, Wise lets you hold over 40 different currencies in one account. This means you can exchange money when rates look good, not just when you need to make a purchase.

Perfect For:

• Frequent international travellers who visit multiple countries

• Online shoppers who browse global stores

• Digital nomads or those working abroad

• Anyone sending money to family overseas

3. BMO Prepaid Mastercard

One of the smartest features of this card is how it stands separate from your main bank account. This creates a natural security buffer when you're exploring new destinations—if your prepaid card information is compromised, your primary accounts remain safely isolated. You'll only ever risk the amount you've loaded, giving you peace of mind while wandering through unfamiliar places.

Need to make purchases abroad? The BMO Prepaid Mastercard works globally at millions of locations displaying the Mastercard logo—from busy city centres to remote villages. This wide acceptance means you're less likely to find yourself scrambling for payment alternatives during your travels.

4. CIBC Air Canada AC Conversion Visa Prepaid Card

One standout feature of this card is its accessibility—you can pick it up directly at Toronto Pearson International Airport as you're heading out on your trip or have it delivered to your home address if you're planning ahead. No need to be an existing CIBC customer either, making it an option for anyone regardless of who you normally bank with.

The card works like a personal currency exchange hub, allowing you to store and manage 10 different currencies simultaneously. This means you can load up on euros before that rate spike when heading to Europe, keep some US dollars ready for your weekend getaway, and still have Japanese yen waiting for your future Tokyo trip—all on one card.

How Do Prepaid Travel Cards Work?

Prepaid travel cards function like a financial middle ground between cash and credit. You purchase the card and load it with a specific amount before your trip—think of it like filling a gas tank before a road trip. Most cards let you load anywhere from a few hundred to several thousand dollars.

Once you're at your destination, you'll use this card just like a debit card—swipe at restaurants, tap at shops, or withdraw local currency from ATMs. The key difference? You can only spend what you've loaded, creating a natural spending limit during your travels.

The Benefits of a Prepaid Travel Card

A Safety Net for Your Finances

Perhaps the biggest advantage is the built-in security. If your card is lost or stolen while you're exploring the streets of Barcelona or the markets of Bangkok, thieves can only access the funds loaded on that specific card—not your entire bank account or credit line. It's like creating a financial firewall between your travel spending and your broader financial life.

Digital Convenience

Unlike the cumbersome traveller's checks of yesteryear (yes, they still exist!), prepaid travel cards offer modern convenience. Most come with apps that let you check balances, review transactions, and even freeze your card if it goes missing—all with a few taps on your phone.

The Downsides of a Prepaid Travel Card

Fee Awareness is Essential

The truth is, prepaid travel cards often come with more fees than many travelers expect. These can include:

• Foreign transaction fees (often 2-3% per purchase)

• Card purchase or activation fees

• ATM withdrawal charges (especially at international ATMs)

• Inactivity fees if you don't use the card regularly

• Balance refund fees if you want remaining money back after your trip

No Credit Building Benefits

Unlike traditional credit cards that can boost your credit score when used responsibly, prepaid cards won't help build your credit history since they don't report activity to credit bureaus.

The Empty Tank Problem

Without careful tracking, you might find yourself with an embarrassing declined transaction at a restaurant or shop. Since there's no credit line to fall back on, once your loaded funds are gone, your card stops working until you reload it.

Smart Tips for Travellers

1. Fee Check: Before choosing a card, compare fee structures—some cards waive certain fees while charging higher ones elsewhere.

2. Destination Verification: Confirm your card will work where you're headed. Not all prepaid cards function in every country due to network restrictions or U.S. trade sanctions.

3. Know Your Limits: Understanding daily reload limits, withdrawal limits, and purchase limits can prevent frustrating surprises during your trip.

4. Avoid Holds at All Costs: Never use your prepaid card for hotel or rental car reservations, as these businesses often place holds that can lock up hundreds of dollars for days. Use a credit card for reservations, then switch to your prepaid card for final payment.