Virtual Prepaid Credit Card in Canada

A virtual prepaid credit card is a digital payment card that lets you shop online using money loaded into an account. Unlike a traditional credit card, it does not provide a revolving credit limit or charge interest on a balance.

KOHO offers a virtual prepaid Mastercard that can be used online, in apps and through supported mobile wallets.

KOHO Virtual Card: Best Pick (Virtual Credit Card Alternative)

With the KOHO Virtual Card, you can:

• Open an account and get your card instantly

• Earn 3.5% interest on your entire balance

• Earn up to 6.5% cash back on select merchants

• Lock and unlock your card instantly in the app

Is a Prepaid Card the Same as a Credit Card?

No. A prepaid card uses money that has already been added to the account. A credit card lets you borrow up to an approved credit limit and repay the balance later.

With the KOHO Virtual Card, purchases are deducted from your available KOHO balance. You do not borrow money or pay interest on your spending.

What Can You Use a Virtual Prepaid Card For?

You can use a virtual prepaid card for:

• Online shopping

• Subscriptions and recurring bills

• In-app purchases

• Travel bookings

• Food delivery

• Contactless mobile payments

Some merchants may not accept prepaid cards. A physical card is also required for ATM withdrawals.

Are Virtual Prepaid Cards Secure?

Virtual prepaid cards can provide additional control because they are managed through an app.

KOHO lets you lock your Virtual Card, set it to lock automatically after a chosen number of transactions and replace it through the app if its details are compromised.

What Should You Compare?

Before choosing a virtual prepaid card in Canada, review:

• Monthly account fees

• Loading options

• Merchant acceptance

• Mobile wallet compatibility

• Foreign transaction fees

• Card security controls

• Replacement limits

The KOHO Virtual Card may be suitable for Canadians who want immediate digital card access without applying for traditional credit.