Best 5 Virtual Credit Cards in Canada 2024

Have you heard of the interesting term “Virtual credit cards”? In this digital world, we often get to read and learn about such trending concepts. So here, we will be discussing all about Virtual Credit cards. Also, discover about the Best Virtual Credit Cards in Canada and their benefits.

Need for Virtual Credit Cards

Most of us reading this article must have gotten spam calls from strangers impersonating a banker from one of the big five banks. They sound so real that we blindly believe them as they spell out our personal information accurately. But how is this possible? 

All of us also use our credit cards at stores and on online portals like Amazon, Flipkart etc. We also vaunt our lifestyle, thoughts and career growth on Instagram, Facebook, LinkedIn, Twitter etc. These make it a cake walk for the fraudsters to deceive us. They breach the point-of-sale systems to somehow get our credit card number, expiry, CVV and it is not so difficult for them to get access to our name, location, address, etc. via our social media posts. Bang! They are jumping in joy with too much information out there! 

There are so many types of credit card scams – stealing your credit card, applying for a credit card using your personal information, account takeover, skimming your cards etc. Luckily, the advent of virtual credit cards is helping us mitigate risks and fraudulent activities. 

What are Virtual Credit Cards?

Physically, managing loonies and toonies is close to becoming history now. We are all veering towards a cashless economy. Digital currency is the fad, so why not computerize credit too? A virtual credit card is simply a digital version of your physical plastic credit card. The difference is that you need to carry it in your smartphone, or tab or laptop, instead of your pockets. Otherwise, you can perform all activities with a virtual credit card just like you used to do with your physical credit card. 

You might now be thinking of the million-dollar question. How can this minimize trickery? Come, let us delve in!

A physical credit card has a fixed card number, expiration date and CVV printed on it and you use the same information every time you make a transaction. Whereas, a virtual credit card generates a new card number, code, and expiration every time you use it. This information does not follow any series but are random numbers. Without the most important details like card number, expiry and code, the fraudsters have no means to hack your money and they simply go nuts. By this mechanism, the virtual credit card offers a safety net for your money. 

Best Virtual Credit Cards in Canada

Now, let’s get a glimpse of some of the popular Virtual Credit Cards for the Canadian users.

1. KOHO Prepaid Mastercard

KOHO started out with the aim of offering better fintech solutions to Canadians and it is no wonder that they have dived into the virtual credit card business, apart from their free spending and savings account. KOHO offers two varieties of virtual cards – one is the Prepaid MasterCard and the other is Premium Prepaid MasterCard. These are basically debit-style cards that are reloadable and offer great features .

Why KOHO? If you have a not-so-good credit score and if you are looking to build it gradually, then you can simply sign-in to KOHO’s credit builder feature and dive into your credit score building mission by paying $10 a month. 

Have you imagined a life where you can earn by spending money? With KOHO, you get exciting cashback and signing up offers.  The difference between the standard and the Premium card is that cashback rates are higher on premium and the foreign exchange transaction fees are nil on the premium card.

Apart from the constantly changing card details, KOHO as an organization is a safe haven, as your money is deposited with Peoples Trust, which is a federally regulated bank and your funds are insured by CDIC. 

2. Wealthsimple Cash Card

Wealthsimple has always made ground-breaking moves, may it be access to easy stock trading, robo advisory, fractional shares, roundup feature, and obtaining license for real time rail payments. Just like its free trading offers, its virtual credit card is also free of annual maintenance charges.

We discussed that KOHO offers great cashbacks. How is Wealthsimple unique? Well, being a brokerage account by itself, you can choose to take your cashbacks as shares, ETFs or Cryptos with Wealthsimple. This truly is an epitome of innovativeness. 

3. RBC Virtual Visa Debit

Although the financial sector is becoming hi-tech and modern, we all seek solace from the security of a trustworthy institution. If you are someone who will bank only on well-established organisations, then go for the RBC Virtual Visa Card. This is offered by Royal Bank of Canada, which is one of the big five banks of Canada. 

With this card, you cannot expect exciting offers, but your funds will be in safe hands. However, to have access to this card, you MUST have an RBC bank account. So, if you are an existing RBC bank customer looking to try out virtual cards, then do not look back, just go for it. 

4. STACK Prepaid Mastercard

When used correctly, a credit card does not mislay you, it rather empowers you. The major drawback of a credit card is that you tend to over use it. But STACK has a solution to this! Download STACK Finance app on your mobile and get an understanding of your spending habits. 

The card also offers a Zero Liability policy. Well, if you are afraid that hackers will use your hard-earned money, you can opt for STACK, for it will not hold you responsible for such mishaps. 

5. Mogo

A few years ago, corporate social responsibility was famous, where companies took part in activities that would make society a better place to live. Nowadays, terms like socially responsible investments and halal investing are in trend. If you look to indulge in products that are in the best interest of society, then Mogo is the one for you. For every transaction you make with your Mogo card, a tree gets planted. Isn’t this simply amazing? 

In addition, Mogo deeply cares about the security of your funds. It offers free identity fraud protection, and free credit score tracking. 

You may also like to know How many credit cards should You have in Canada?

Virtual Credit Cards Canada – Are they worth it?

Thus, a virtual card is the go-to option if you wish for seamless transactions, a high level of security and fraud protection. In addition, have you ever thought of the quantity of plastic we are using in the form of credit cards? Once they expire, we throw them away and it takes years for the plastic to get decomposed. If you think outside the box, then virtual cards are environmentally friendly too. 

Having said that, every coin has two sides to it. Virtual cards are sprouting slowly and many points of sale have not commenced accepting them. Also, just imagine that you wish to refund an item purchased online. We all do it often. In this case, since the card credentials expire after being used, the sellers are clueless where to refund your money and the only resort is for money to be credited to your store balance. If such hiccups are solved, then virtual credit cards are undoubtedly “The Next Big Thing.”  

It’s the digital era! May it be Virtual Credit Cards or Online Stock Brokers in Canada, it’s all headed towards a better customer experience.

Do you have any other Canadian Virtual Credit Card names to add to our list? Do share in the comments.