Introduction: PayPower Mastercard is Still Alive
PayPower is no secret to the dedicated miles and points enthusiast. The reloadable prepaid debit Mastercard was a potent manufactured spending outlet several years ago.
In the past it could be scaled by signing up for multiple PayPower cards, however, Peoples Trust, the company that issues most prepaid cards in Canada, has since cracked down on this with enhanced identity resolution and compliance.
Still, the PayPower Mastercard, and other reloadable cards such as the Titanium+ prepaid Mastercard, do retain a role in the wallets of credit card rewards and miles and points enthusiasts. This is twofold: 1) manufactured spending is still viable with the PayPower Prepaid MasterCard for a nominal profit per reload, and 2) it can relieve some of the financial pressure of meeting minimum spends if you are working on many cards at once.
I find the latter to be of particular importance as someone who signs up for many many cards a year, but also is extremely frugal and doesnât have the organic spend to support such a practice.
In this post, weâll walk you through exactly how to best use the PayPower Prepaid MasterCard for both of these objectives, manufactured spending and meeting credit card minimum spending requirements, with the maximum convenience possible.
What is the PayPower Prepaid Mastercard
PayPower cards are prepaid Mastercards (and Visa cards) that come in reloadable and non-reloadable flavours. As with most prepaid cards in Canada, they are issued by Peoples Trust Company. Generally, the best card to get is the black reloadable MasterCard, which can be loaded and reloaded with amounts from $20-500.
PayPower Prepaid MasterCards have an assortment of fees, including an activation or new card fee. Once youâve purchased the card for the first time, you can register the card and upgrade it to become a reloadable prepaid MasterCard.
Once upgraded, the money you load to the card can be withdrawn at ATMs or used to make bill payments. Weâll show you how to get creative with the latter to withdraw the money back to your bank account.
Where to Buy the PayPower Prepaid Mastercard
PayPower Prepaid MasterCards can be purchased or reloaded at several different brick-and-mortar locations, such as Circle K, 7-Eleven, Esso, Canadian Tire, Safeway, Save-On-Foods, etc. You can browse the full list of retailers on PayPowerâs website.
What makes PayPower lucrative is the fact that you can get a category spend bonus (such as âGroceryâ spend) when you purchase or reload your PayPower prepaid card. This more than offsets the fees associated with the card and with withdrawing the cash. With the right credit card, you will make a decent profit.
How to Reload the PayPower Mastercard with a Credit Card
After youâve purchased and activated your first PayPower black card, go to https://paypower.ca and create an account. Once logged into your PayPower account, enter the card number to register the card, and upgrade it to the âReloadable Powerâ tier by clicking âEnable Reloadsâ.
At this step, you will have to go through KYC (Know Your Customer) verification, and be asked a series of security questions regarding your credit history and financial health, to confirm your identity. The second stage of this will involve linking your bank account. Make sure to pass KYC carefully as PayPower customer support is notoriously unhelpful for those who get stuck at this step and canât upgrade their card.
Related: How to Manufacture Spend with Buying Groups
Once youâve got your card upgraded to reloadable, you can take it to any of the retailers designated as âReload Locationsâ on the PayPower website.
At the retailer, you will provide your PayPower Prepaid MasterCard to the employee and ask to do a reload. If they seem confused, instruct them to treat it as a gift card. Once the card is scanned the system will prompt for the reload amount. The maximum you can load at one time is $500. Of course, if you have a nice cashier, you can ask them to load it again for you, but youâll pay the reload fee ($6.95) each time.
You may also have more luck utilizing the customer service checkout at grocery stores as they may have more familiarity with these kinds of transactions.
How to Withdraw Money from the PayPower Prepaid Mastercard
Once your PayPower Prepaid MasterCard is loaded with money, there are essentially two options available to transfer funds: withdraw them in cash at an ATM or utilize bill payment to send funds to a credit card or other account.
ATM withdrawal is not a very effective method as the max per transaction is $250, and you will pay not only the $1.95 withdrawal fee, but any fees charged by the ATM as well. Drawing down a large PayPower balance via ATM has also resulted in a ban for one of the Frugal Flyer authors. :/
Bill payment is the superior method from a cost perspective, and also from a convenience perspective: after all, who wants to be making trips to an ATM all the time as there is a per day withdrawal limit.
How to Use Bill Payment to Empty your PayPower Mastercard
In the PayPower dashboard, you can initiate Bill Payments through the âMy Transactionsâ tab.
From there, you can select âBillsâ, then âAdd a Billâ, and search for various payees. Most credit card issuers in Canada are available.
I like to send my bill payments to my Tangerine credit card, and then when the balance builds up, I request a manual transfer of the debited amount to my Tangerine chequing account. I personally just find Tangerine to be a bank that doesnât care or question what you do with your accounts. However, the same process should work with most banks and credit card combinations.
One last note – Paypower includes the $1.95 fee in the $1000 daily limit, so the actual maximum amount you can bill pay works out to $998.05.
Fees and Limits Associated with the PayPower Prepaid Mastercard
Fees
The PayPower Prepaid Mastercard does have an assortment of fees. For the initial purchase of the card, you will pay an activation fee of $9.95.
For each reload, you will pay a reload fee of $6.95.
You will also pay a monthly fee of $4.95, which will be deducted from your card balance.
Finally, sending a bill payment or withdrawing from an ATM will incur a fee of $1.95.
Limits
In terms of limits, the PayPower Reloadable card can only be loaded with $500 per transaction, to a maximum of $2,500 daily and the maximum balance that can be held on the card is also $2,500.
The other limit to be concerned with is bill payment. The maximum is $1,000 daily, $2,500 weekly, and $5,000 monthly.
Using PayPower Prepaid Mastercard for Manufactured Spending
Using the PayPower Prepaid card to generate points is a valid and profitable manufactured spending strategy, but only when paired with the right credit card at the right retailer.
The best practice is to use a credit card that earns an increased category spend at grocery stores, such as the MBNA Rewards World Elite Mastercard or the Scotiabank Gold American Express Card.
Related: Best Credit Cards for Grocery Purchases in Canada
The MBNA Rewards World Elite earns 5 MBNA Rewards points per $1 spent on stand-alone grocery stores in Canada. You can earn at this rate to a maximum of $50,000 in net purchases per year, which would amount to 250,000 points if maximized.
The MBNA Rewards World Elite Mastercard earns MBNA Rewards points and gives cardholders the opportunity to earn 5x MBNA Rewards on restaurant, grocery, digital media purchases, and more.
Check out our MBNA Rewards World Elite Mastercard review for more details.
30,000 MBNA Rewards
$2,000
$180+
$120
Yes
–
The Scotiabank Gold American Express Card earns 5 Scene+ points per $1 spent at grocery stores. It also earns 3 Scene+ points per $1 spent at gas stations. You can earn at the 5X rate on a maximum of $50,000 in net purchases per year, which would amount to 250,000 Scene+ points if maxed.
The Scotiabank Gold American Express card earns Scene+ Rewards points and gives cardholders the opportunity to earn 5x Scene+ points on grocery, restaurant, and entertainment purchases. This card charges no foreign exchange fees.
Check out our Scotiabank Gold American Express card review for more details.
40,000 Scene+
$7,500
$280+
$120
No
Jul 1, 2024
Now, taking into account the monthly bill payment limit of $5,000 we can do some math to see the return on each $500 load, and on maxing and depleting the PayPower Prepaid MasterCard monthly:
| Return on Loading PayPower with 5x Earning Credit Card | |
|---|---|
| Return per transaction | $500 = 2,500 points = $25 CAD (at value of $0.01 CAD per point) – $6.95 = $18 CAD |
| Return per month | $250 CAD ($25 * 10) – $69.50 CAD ($6.95 * 10) – $9.75 CAD (1.95 * 5) – $4.95 CAD (monthly fee) = $165.80 CAD/month |
This produces a modest return, which becomes a little better if scaled with a Player 2. Also consider that the value of the points can be higher if redeemed for travel, depending on the program. In this comparison, we simplified it by using the value if liquidated to cash at the highest possible rate.Â
Using the PayPower Prepaid Mastercard for Meeting Credit Card Minimum Spend Requirements
Aside from maxing out your PayPower Prepaid Mastercard on any credit cards that have a high category spending bonus on groceries, you can reload PayPower cards to meet minimum spending requirements for any cards you may be working on, even US credit cards.
This also does open up some options for reload locations. For example, if the card youâre working on happens to earn a category bonus at gas stations, then it may make more sense to do your reloads at ESSO.
Without any category bonus, you will ultimately net a small loss due to fees when reloading PayPower to meet minimum spends. The math works out as follows:
- Cost per $1,000 loaded = $6.95*2 + $1.95 = $15.85
- $15.85/$1,000 *100 = 1.59%
So approximately a 1.59% cost of manufactured spending, which isnât bad if we assume any credit card will earn at least 1% in points value. A small loss is still worth it as it allows you to work towards minimum spend requirements.
Summary Table: PayPower Mastercard and Other Reloadable Prepaid Cards in Canada
| PayPower Prepaid Mastercard | MoneyMart Titanium+ Card | MyVanilla Prepaid MasterCard | |
|---|---|---|---|
| DETAILS | |||
| Type | Mastercard | Mastercard | Mastercard |
| Reloadable | Yes | Yes | Yes |
| Load Method | Reload in-store | Vanilla Reload | Vanilla Reload |
| Withdrawal Method | Canadian ATM or Bill Payment | Canadian ATM or MoneyMart cash | Canadian ATM |
| FEES | |||
| New Card Fee | $9.95 +tax | $9.99 +tax | $9.95 |
| Monthly Fee | $4.95 | $6.50 | $4.95 |
| Fee to Load | $6.95 | $3.95 +tax | $3.95 +tax |
| Fee to Withdraw | $1.95â | $1.95â | $1.95â |
| LIMITS | |||
| Max Load | $500 per transaction, $2,500 daily | $500 daily via Vanilla Reload | $500 per transaction, $2,500 daily, $5,000 monthly |
| Max Withdrawal | $1,000 daily, $2,500 weekly, $5,000 monthly (bill pay) | $3,000 daily | $500 per transaction, $2,000 per day, $2,500 per month |
| Max Card Balance | $2,500 | $15,000 | $9,999 |
Conclusion
PayPower cards are less abusable and consequently less lucrative these days. However, it’s still a valuable tool for the dedicated miles and points enthusiast, primarily as a means to meet minimum spending requirements when you otherwise might not be able to.
If you decide to scale PayPower to earn the most points possible, remember that there are risks. Many horror stories have occurred where money was stuck in limbo with PayPower, and financial institutions may flag and investigate suspicious transactions.
Best practices dictate the following: 1) donât overdo it with ATM transactions, bill payment is best, and 2) donât create a circular loop where you bill pay to the same card you loaded with. Itâs best to instead bill pay to a credit card (or line of credit) at a separate bank and then have your bank transfer that negative balance to your checking account.
Frequently Asked Questions
PayPower is issued by the Peoples Trust Company under license from Mastercard International. People’s Trust is the issuer of a large majority of prepaid products in Canada, including the reloadable Titanium+ Mastercard, PayPower Prepaid Mastercard, and Vanilla prepaid cards.
Funds loaded onto the PayPower Prepaid Mastercard are not insured by the Canada Deposit Insurance Corporation (CDIC).
If you violate the terms of PayPower there is always a risk that you will be banned. If this happens you will get your PayPower balance back as a check, but your money may be stuck in limbo for up to a few months.
It is best to use a spreadsheet. Calculated fields can help with knowing how much you have on your card and where youâre at with daily, weekly, or monthly limits. We have a template tracker in Google Sheets for tracking PayPower and Titanium+ reloads.
Yes, PayPower can be used for online purchases if that is how you wish to use it. A PIN is not required, although you may set one up by calling PayPower customer service at 1-800-982-1258.
Yes, you can use PayPower to buy Costco Cash cards at Costco.ca. Read more about methods to use prepaid cards for Costco purchases.
Matt Astro
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It seems the info you have for MyVanilla Prepaid is from US, not CDN.
MyVanilla Prepaid Card is a prepaid Mastercard, not debit card.
I don’t think there is Walmart Rapid reload in CDN.
New Card Fee is $9.95 +tax, not $3.95
Monthly Fee is $5, not free.
Fee to Withdraw is $2, not $1.95.
Max Withdrawal is $500, not $400.
So my physical PP reloadable card is expiring this month, the customer service says no more physical cards issued are not reloadable anymore and suggests using Digital Reloadable card.
Unfortunately the stores are not able to reload digital cards at the moment (tried at 3 grocery stores). Is this end of the road for me? Any other options available to reload at store (with Paypower or other cards?)
Hi Aalap,
Possible workaround is to buy a nonreloadable and transfer the balance to the digital card, as per other commenter. Unsure if this works yet. We are also waiting to see if the digital reloadables become reloadable at more locations. Otherwise I am not sure why PayPower would do this and undermine the main utility of their card…
So this would mean, every 500 reload will have a card attached to it in my profile. is that sustainable? Ultimately after about 10 reloads, my profile might get banned no?
Not sure, however happy to report we have had someone have success reloading the digital card at sobeys now.
May i know if the sobeys is “officially” supporting digital reloads? Or they just happened to have figured it out?
Checking the locations near me the only store that allows QR reloads is still Canada Post…
Not sure yet – I suspect it is supported technically but may take time for locations to become aware. Regarding the location map, I am not sure that has ever been very accurate for reloads.
Hi all, are there any new stats on whether Sobeys or Circle K are now able to reload the new digital cards? TIA
So PayPower just discontinued the issuance of reloadable physical cards. Now we can only get digital reloadable cards in the app, which uses a QR code to top up. AFAIK only Canada Post can do reload for the digital cards. Does this mean PayPower is dead for newcomers or could there be some workarounds? (One thought I had was to buy non-reloadable cards and transfer balance to the digital cards, which effectively changes the 6.95 reload fee into a 9.95 new card fee. Not sure if balance transfer like this is allowed. )
Hi John,
I believe the card transfer is possible, although I haven’t tried it myself.
I am not sure what PayPower’s plan here is, but hopefully the digital cards become reloadable at all the same retailers the physical cards were in the long term.
Until then, hopefully all of us with physical cards also stay grandfathered…
Hi Matt, this is an amazing article, really appreciate all your efforts to help the needy. Quick question, based on your table, wouldn’t the MyVanilla Prepaid Debit Cards have the lowest fees and hence highest returns? Am I missing something here?
Thanks Hoinam. It depends. MyVanilla requires multiple transactions to withdraw due to the withdraw limits which can raise the costs to closer to par, also Vanilla Reload isn’t possible at grocery stores which generally have higher multipliers (up to 5x or 6x) than gas stations (usually up to 3x). But it does depend on your use case.
Has anybody tried using PayPower to get money order? PayPower only allows 5×1000 bill payment per month so I am seeking other ways to liquidate the funds I load in it.
Hi Steve,
Personally, I have not tried money orders with paypower. When scaling, most people get multiple PayPower cards under their P2, P3, and so on.
“I like to send my bill payments to my Tangerine credit card, and then when the balance builds up, I request a manual transfer of the debited amount to my Tangerine chequing account.”
Can I just make the transfer online myself or do I need to call in? (Would I be charged cash advance fees if I make the transfer myself?)
I believe you would be charged yes.
Why is it so hard to check my balance???
What do you mean? You just log in and its there.
Why I can’t load directly on the PP website to my P2’s card using my own CC?
I get this error:
“OOPS! We are unable to process your PayPower funding transaction! Please contact Customer Support 1-800-925-125 (RPT-30119)”
With my powerpay MC , i noticed that the reload options only have MC or Visa. There is no Amex now.
I like to send my bill payments to my Tangerine credit card, and then when the balance builds up, I request a manual transfer of the debited amount to my Tangerine checking account. I personally just find Tangerine to be a bank that doesnât care or question what you do with your accounts. However, the same process should work with most banks and credit card combinations.
Tangerine charges $3.50 for a cash advance to do this.
Hey Craig,
I’ve never been charged a cash advance fee to do that personally.
Hi Reed,
I’ve done it twice now via desktop login (move money from MC to chequing) and have been dinged both times. How do you go about doing it?
I call in and ask them to move my negative balance to the checking account.
I’m not sure if they still have chat, but I used to do it via chat agent as well.
What’s the best way to liquidate? Is it okay to bill pay the same credit card you used to load?
Interesting question.
Anyone has an answer?
Bill pay is the best method, where you bill pay is your choice, whether it be another credit card, line of credit, etc etc. I would personally avoid sending directly to the same credit card, especially with American Express cards.
Is it possible to add the Canadian Tire MasterCard as a payee?
Yes it is.
Does the publication of an article like this typically end up getting a lot of attention and then getting shut down? Is it best to speak about an active MS method so publicly?
Also surprised it’s so brazenly talked about. Hope it doesn’t get shut down.
The information has already been out there for ages, even in other blog posts (especially in the Chinese miles-and-points blog scene).
To a degree, PayPower knows that this is one of the ways people use their cards. They do shut down people for significant exploiting their products (myself included in Jan 2019 when I was running with multiple cards), no different than Amex. I’d be far less worried about the method disappearing than I would be regarding the risk of being banned by either PayPower or your card issuer.
As with everything in this hobby, risk management is the name of the game.
bunch of misinformation, do your research before trying to do another “points blog”
Salty
Hello Matt,
Got the amex cobalt and platinum + started using paypower. However many threads speak of people getting banned by amex. Iâd appreciate having your input on that. Ever experienced sth similar ?
Thx
Phil
Hi Phil,
Most Amexiles I’m familiar with are from long term abuse. Financial review may be what you’re thinking of?
In either case, its a matter of moderation and risk management – if you’re just using this to hit minimum spends, I don’t think you have much to worry. On the other hand if you are trying to scale it to any degree, you may want to diversify amongst different cards eg. the Scotia Gold.
Matt Astro should read Lord Churnington’s post on the 10 Commandments of Manufactured Spending LOL
Touche Joe đ
Frugal Flyer team is considering gating some of our more MS-related content in the future. For now, we felt Paypower was pretty low hanging fruit – its well known by most of the churning community and isn’t scalable anymore anyways. It’s also already been blogged about pretty heavily by other blogs.
At the same time, it still requires some investigation to know about the PayPower method. Itâs some peoples only method of MS. Itâs pretty insane to literally lay it out for some clicks on your blog. Just going to ruin it quicker for all of us.
We are indeed insane Mr. AC, and we will go to great lengths for clicks.
In all seriousness, I don’t believe it will be ruined, and not by PayPower. PayPower makes money when we load these cards, and they are also fully aware that some people abuse the system. They take action against those who are excessive.
Itâs one thing to talk about it and itâs another to lay it out so Grandma can do it. If load fees go up, major grocery chains stop loading them or Amex cracks down itâs on you. Stop publishing so openlyâŚ. Let people work a little.
Why shouldn’t grandma be able to churn too?