By Keph Senett on January 30, 2023
Estimated reading time: 4 minutes

Prepaid cash back cards: A new way to manage your spending

By Keph Senett on January 30, 2023
Estimated reading time: 4 minutes

Prepaid cash back cards aren’t credit or debit cards—but they offer the convenience of both, plus benefits that can help you manage your spending.

A smiling woman at a cafe looks into a shopping bag

Image by Freepik

Effectively managing your spending is a key component of financial well-being. It can help you stick to your budget, meet your money goals and experience a sense of stability around your finances. Read on for the six top reasons why you should consider adding a prepaid cash back card to your wallet.

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.

When you use EQ Bank’s prepaid cash back card to make purchases in a foreign currency, such as U.S. dollars, EQ Bank does not charge any additional FX fee or markup, making this the perfect travel or online/cross-border shopping card. (Foreign currency transactions will be subject to the Mastercard Currency Conversion rate. EQ Bank does not charge any additional FX fee or markup.) It’s like getting an automatic discount on every purchase at your favourite American retailers. Add this card to your packing list before you travel.

6. Enjoy the security of a prepaid card

Nobody wants to walk around with pocketfuls of cash. And online security, particularly identity fraud, is an increasing concern. With EQ Bank’s prepaid cash back card, you can rest assured that if you lose the card or it falls into the wrong hands, you can lock it via the EQ Bank mobile app, online or by contacting customer care, and your balance is protected under the Mastercard Zero Liability policy.

Sometimes the best ideas are the simplest. For those looking for a secure and convenient way to pay for their purchases and manage their budgets—and earn cash back!—EQ Bank’s prepaid cash back card is a must-try.

Video: Five reasons to swap your debit card for a prepaid cash back card

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