What is a prepaid card?
Unlike a credit or debit card, a prepaid card is loaded, by you, with money you’ve set aside to spend.
Let’s say, for example, you’ve earmarked $1,000 to spend on a new couch. With the EQ Bank Card, a prepaid reloadable Mastercard (issued by Equitable Bank with a license from Mastercard International Inc.), you could simply load that money from your savings account to your prepaid cash back card using the EQ Bank app. You’d then use your prepaid card much like a credit or debit card, but with some notable benefits.
1. Prepaid cards are an easy way to stick to a budget and prevent overspending
When you use EQ Bank’s prepaid cash back card, you can load it with whatever amount you’ve budgeted for your purchases. This can be an effective tool to avoid impulse buys and monitor your spending, or to give someone else a shopping budget (a kid going off to university, for example).
2. The convenience of a credit or debit card—without the interest or overdraft fees
If you’re like most Canadians, you’ve become comfortable using a card to pay for purchases. The problem is, it’s easy to blow your budget when you charge expenses to a credit card—and once the account carries any debt, the interest accumulates quickly. Using a debit card will let you bypass the interest, but if you overspend from your bank account, you’ll be hit with an overdraft charge.
With the EQ Bank prepaid cash back card, you’re charged neither interest nor overdraft fees, and you simply can’t overspend. Plus, because this isn’t a credit card, it’s not linked to your credit score, making it a promising option for new Canadians or those with low or no credit rating.
3. You can earn cash back
Earning cash back on your purchases is like getting an automatic discount everywhere you shop. When you use EQ Bank’s prepaid cash back card, you’ll receive cash back on every purchase. See the EQ Bank Card Agreement for full details plus terms and conditions.)
4. Use it almost anywhere
EQ Bank’s prepaid cash back card is widely accepted at retailers, including online. You can also use the card at every ATM across the country, and EQ Bank will reimburse the fees. You read that right—every ATM, even those from other banks and third parties, so you can be sure you’ll have access to funds where and when you want them.
5. You’ll save on foreign exchange fees
Most credit cards and debit cards add a surcharge, often 2.5%, to foreign-currency transactions—on top of the daily exchange rate.