A virtual credit card works just like the regular card in your wallet, only it has no physical card.
It used to be all about cash or plastic—and maybe metal if you were fancy enough to carry one of those sleek Amex cards. But handling physical objects? That’s so last century. Now, you can enjoy all the perks of credit without the physical card. Easily compare the best virtual credit cards in Canada to see which one is the best for your lifestyle.
Top 3 virtual credit cards in Canada
What is a virtual credit card?
A virtual credit card works just like the regular card in your wallet, only it has no physical card and is instead accessible via your computer or phone, and only usable for online and remote purchases (unless connected with a transaction platform on your phone like Google Wallet or Apple Pay).
You may ask, “why would I want a card that only exists on my phone?” There are a few reasons. Chief among them is security – virtual cards disguise your actual credit card number, presenting a temporary one for purchases. That means in a data breach, you’re insulated from having your real credit card info nabbed.
How does a virtual credit card work in Canada?
If your card comes with a virtual option, you can opt to use it for online purchases (or in store via wallet app). Your credit card will create a temporary number to use for the purchase, so your real number is disguised. Once you’ve made your purchase, all info pertaining to it will be visible as usual on your statement.
Compare the best virtual credit cards in Canada
KOHO Essential Account
$20 sign-up bonus
Welcome Bonus
$68
First Year Value
$48
Annual Value
Welcome Bonus: Get a 30-day free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.
Get this card if you...
Annual Fee & Annual Interest Rates
$48
Annual Fee
Our Take
The KOHO Prepaid Mastercard® is a reloadable card paired with a mobile app, offering features such as cash back on purchases, interest on account balances, and budgeting tools to help users manage their finances effectively. It provides options for credit building and has tiered plans to cater to different financial needs, making it a versatile alternative to traditional credit cards.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
Cons
Fees
$48
Annual Fee
1.50%
Foreign Transaction
Rewards cash back
1%
cash back on groceries, eating & drinking, and transportation
50%
extra cash back from select merchants
2.5%
interest on both your spending and savings account (Your funds will also be eligible for CDIC insurance)
0%
Get access to a cash advance of up to $250 at 0% interest with Cover.
30-day trial
All KOHO plans come with a free 30-day trial so you can see if it suits you.
Get 30 days of free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.
Only the users who successfully register a new KOHO account and make their first $20 purchase using their KOHO card within 30 days of registration are eligible for the offer and may claim the one-time $20 bonus in their KOHO account. This offer is non-transferable and may only be used once per person. Offer is not applicable in conjunction with other KOHO offers or promotions. KOHO may, at its sole discretion, suspend, terminate or change the terms and requirements of the offer.
Our Take
The KOHO Prepaid Mastercard® is a reloadable card paired with a mobile app, offering features such as cash back on purchases, interest on account balances, and budgeting tools to help users manage their finances effectively. It provides options for credit building and has tiered plans to cater to different financial needs, making it a versatile alternative to traditional credit cards.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
Cons
Fees
$48
Annual Fee
1.50%
Foreign Transaction
Rewards cash back
1%
cash back on groceries, eating & drinking, and transportation
50%
extra cash back from select merchants
2.5%
interest on both your spending and savings account (Your funds will also be eligible for CDIC insurance)
0%
Get access to a cash advance of up to $250 at 0% interest with Cover.
30-day trial
All KOHO plans come with a free 30-day trial so you can see if it suits you.
Get 30 days of free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.
Only the users who successfully register a new KOHO account and make their first $20 purchase using their KOHO card within 30 days of registration are eligible for the offer and may claim the one-time $20 bonus in their KOHO account. This offer is non-transferable and may only be used once per person. Offer is not applicable in conjunction with other KOHO offers or promotions. KOHO may, at its sole discretion, suspend, terminate or change the terms and requirements of the offer.
Get past the flashy branding and the slick app, and the KOHO Essential is a pre-paid virtual Mastercard with a handful of features. In addition to the cash back and savings interest noted above, its fees can be waived if you set up a recurring direct deposit to it, or add $1,000 each month.
The downside to this card is the cash back can feel a little ho-hum unless you shop a great deal at the select partners where you get a cash back bonus boost. Other than that, it’s limited to its three categories and the monthly fee can eat into the return.
KOHO Extra Account
$20 sign-up bonus
Welcome Bonus
$68
First Year Value
$30
Annual Value
Welcome Bonus: Get 30 days of free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.
Annual Fee & Annual Interest Rates
$144
Annual Fee
Our Take
The KOHO Extra Prepaid Mastercard® is a premium prepaid card offering enhanced cash back rates on categories such as groceries, dining and transportation, along with a competitive interest rate on account balances. Additional benefits include no foreign transaction fees, complimentary financial coaching, and access to credit-building programs, making it a suitable option for individuals seeking to optimize rewards and financial management without a traditional credit card.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
Cons
Fees
$144
Annual Fee
0.00%
Foreign Transaction
Rewards cash back
1.5%
cash back on groceries, transportation, food, and drink
0.25%
cash back on all other purchases
50%
extra cash back from select merchants.
3%
interest on both your spending and savings account
$7
Grow your credit up to 22 points in 3 months with Credit Building for $7 / month instead of $10
Get a 30-day free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.
Only the users who successfully register a new KOHO account and make their first $20 purchase using their KOHO card within 30 days of registration are eligible for the offer and may claim the one-time $20 bonus in their KOHO account. This offer is non-transferable and may only be used once per person. Offer is not applicable in conjunction with other KOHO offers or promotions. KOHO may, at its sole discretion, suspend, terminate or change the terms and requirements of the offer.
Our Take
The KOHO Extra Prepaid Mastercard® is a premium prepaid card offering enhanced cash back rates on categories such as groceries, dining and transportation, along with a competitive interest rate on account balances. Additional benefits include no foreign transaction fees, complimentary financial coaching, and access to credit-building programs, making it a suitable option for individuals seeking to optimize rewards and financial management without a traditional credit card.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
Cons
Fees
$144
Annual Fee
0.00%
Foreign Transaction
Rewards cash back
1.5%
cash back on groceries, transportation, food, and drink
0.25%
cash back on all other purchases
50%
extra cash back from select merchants.
3%
interest on both your spending and savings account
$7
Grow your credit up to 22 points in 3 months with Credit Building for $7 / month instead of $10
Get a 30-day free trial for any KOHO plan. Get a $20 sign-up bonus on your first $20 transaction.
Only the users who successfully register a new KOHO account and make their first $20 purchase using their KOHO card within 30 days of registration are eligible for the offer and may claim the one-time $20 bonus in their KOHO account. This offer is non-transferable and may only be used once per person. Offer is not applicable in conjunction with other KOHO offers or promotions. KOHO may, at its sole discretion, suspend, terminate or change the terms and requirements of the offer.
The big brother of the Essential, the KOHO Extra account pumps up the cash back (at a cost). The annual fee is increased to $144, but you now can earn cash back on dining, groceries and transportation. You also get interest on the money you pre-pay to the card, and don’t have any FX fees if you’re spending with it abroad.
Wealthsimple Cash Card
Wealthsimple Cash card
$216
First Year Value
$0
Annual Value
Annual Fee & Annual Interest Rates
$0
Annual Fee
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
Cons
Fees
$0
Annual Fee
0.00%
Foreign Transaction
0.00%
Balance Transfer
Rewards
4%
Earn at least 4% on your account balance
1%
Get 1% cash back on all purchases
0%
There are no foreign exchange fees
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
Cons
Fees
$0
Annual Fee
0.00%
Foreign Transaction
0.00%
Balance Transfer
Rewards
4%
Earn at least 4% on your account balance
1%
Get 1% cash back on all purchases
0%
There are no foreign exchange fees
Simply put, the Wealthsimple Cash Card is everything you want in a digital credit card. No fees, no foreign exchange, no physical card required. Earn 1% cash back on all purchases, which can be paid as stock, crypto or cash. This lean, mean card does have one drawback – no travel insurance of any kind, but that’s far from unusual with pre-paid cards.
Pros and cons of virtual credit cards
Like any card, there’s a variety of advantages and disadvantages to consider as you use a virtual card.
Pros
-
Instant access: Start spending right away as soon as your application has been approved – no waiting for snail mail
-
More secure: Temporary numbers mean your physical card is protected against data breaches
-
Flexible: Many virtual cards let you instantly customize your experience, changing limits and expiration dates online without a visit to a branch
Cons
-
Won’t improve your credit score: All the above cards are prepaid cards which have one thing in common – they don’t affect your credit score (positively or negatively)
-
Require an app to use in person: As you may expect, you can’t use a virtual card in person, without a little in-app assistance. Forgot your phone at home? You might be out of luck unless you have a physical backup.
Virtual credit cards in Canada FAQs

Cam is a content marketer with a passion for saving, financial independence, and pulling off elaborate credit card point schemes. He has worked in Fintech and Finserve (specifically Group Retirement) and loves researching and writing about finance.
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