Review: Vanilla Prepaid Mastercard & Visa

The Canadian financial market has many options when it comes to card products, including both credit cards and prepaid cards.

At Frugal Flyer, we have a soft spot for prepaid credit cards. We have reviewed quite a few in the past and have found that many of these cards have specific but strong use cases. Incidentally, we have also been able to benefit from many of the loopholes in their programs. That being said, there are many reasons why an individual may choose to keep a prepaid credit card in their wallet, including for personal finance reasons.

With that in mind, let’s review one of the most ubiquitous prepaids: the Vanilla Prepaid Visa & Mastercard.

Vanilla Prepaid Visa & Mastercard Overview

While the Vanilla Visa Prepaid card and Mastercard are associated with a credit card brand, they act more like a debit card. The cardholder is only ever able to spend the monetary balance that is remaining on the card.

The Vanilla Prepaid card is sold in both Visa and Mastercard versions. The only difference between the Visa and Mastercard versions of the Vanilla Prepaid cards is that they come in different denominations. All other features and fees are the same.

The cards can be purchased in the following denominations:

• Visa Vanilla Prepaid: $25, $50, $75, $100, $150, $200, $250, $20-$500 (consumer can pick within that range at the point of sale.
• Mastercard Vanilla Prepaid: $25, $50, $100, $200, and $20-$500 (consumer can pick within that range at the point of sale).

When you buy a new Vanilla prepaid card, there will be a denomination located on the package. That is the amount that is able to be spent on the card. When you are buying the prepaid card, there is an activation fee which can range from $3.95 to $7.95, depending on the total denomination of the card. Additionally, the card is immediately activated upon finalizing the transaction (once the activation fees have been paid).

It is important to note that you cannot withdraw money from ATMs with either version of the Vanilla prepaid card. You also cannot use the Vanilla Prepaid card for any recurring billing transactions.

Do the Vanilla Prepaid Mastercard & Visa Have Fees?

Any time a new Vanilla Prepaid card is purchased, activation fees will be charged. The amount of these fees depends on the total monetary denomination of the card that is being purchased.

The card does charge a 2.5% fee for transactions completed in a foreign currency. This means you will pay an additional $2.50 per $100 spent in foreign currencies. There are better cards to use if you are expecting to complete transactions in a foreign currency, so I would advise against using your Vanilla prepaid card unless you do not hold any card that offers no foreign exchange fees.

Outside of the activation fees and foreign exchange fees, there are no additional fees related to using or holding the Vanilla prepaid cards.

Where Can I Buy a Vanilla Prepaid Visa or Mastercard?

Vanilla Prepaid cards are sold at many retailers across Canada, at over 10,000 physical locations. They cannot be purchased online.

Some of the retailers include Walmart, London Drugs, and Giant Tiger. These are all of the retailers that Vanilla prepaid cards can be found at throughout Canada:

If you are going to buy a prepaid card in-store, consider looking near where the gift cards are usually located or at the customer service desk (depending on the location).

How Can I Make a Purchase with my Vanilla Prepaid Mastercard or Visa?

The process for using your Vanilla prepaid card as a payment method depends on whether you are looking to pay in person or online.

Making a Purchase In-Store

The Vanilla prepaid card is accepted at many retail stores. In order to use this card, simply swipe your card at the point of sale. You may be asked to sign a receipt since the card does not support chip and PIN technology (like many other debit cards and credit cards).

If you are looking to make a purchase that is above your remaining money balance, you may be able to split the transaction between your Vanilla prepaid and another payment method. This is dependent on the retailer, but it is worth asking if it can be done.

Making a Purchase Online

The Vanilla prepaid card is also accepted for many online shopping purchases.

Before you shop online with your prepaid card, it is recommended you sign in to your prepaid card account to assign a postal code. Many retailers will require a postal code, so doing this in advance will ensure the transaction goes through successfully.

Once you have assigned a postal code to your card, simply go through the purchase as normal. When you get to the payment section, enter your Vanilla prepaid card information (including the number, expiry date, and CVV on the back). For the billing address, use your personal information (including the postal code that you assigned to the card).

Once that has been filled out, you can submit the purchase and it should be successful. If there are any errors, I recommend contacting the merchant directly.

Who is the Vanilla Prepaid Visa & Mastercard Best For?

The best use case for the Vanilla prepaid card is to use it to meet minimum spends on your credit cards. If you are in a pinch and need another $250 in spend to earn the welcome bonus on a credit card, purchasing a Vanilla prepaid is a simple way to get that spend done in the allotted time period. From there, you can use the Vanilla prepaid card on other purchases in the future.

That being said, there are other methods that I would consider first that are significantly easier and cheaper when it comes to meeting minimum spending requirements. If you are serious about credit card rewards and earning welcome bonuses, doing some research will pay serious dividends when it comes to meeting minimum spends.

Other than that, I’ve often seen people buy these as gift cards for others (as opposed to directly giving them cash). While this is a fine use case if it is being used as a gift card, they are more of a pain to liquidate and frankly, most people would probably prefer cash.

Alternatives to the Vanilla Prepaid Visa & Mastercard

There are a few other prepaid cards in the Canadian market that would be worth considering as an alternative to the Vanilla prepaid card.

Wise Visa Platinum Prepaid Card

The Wise Visa Platinum Prepaid card would be worth considering if you are an avid traveller (like us). The card boasts an easy and reasonably priced way to convert currency; you can hold multiple types of currency on one card. Additionally, you can access up to $350 CAD equivalent in foreign ATM withdrawals per month.

If you are interested in the Wise card, you can earn 500 GBP (~$780) of fee-free transfers by signing up through our link.

KOHO Prepaid Mastercard

The KOHO Prepaid Mastercard offers 0.5% cash back on all purchases, including increased cash back with specific retailers. If you sign up for their premium card at a cost of $9 a month, you will receive 2% cash back on grocery, restaurant, and transportation purchases. KOHO premium also offers no foreign transaction fees and one free international ATM withdrawal per month.

If you are interested in the KOHO card, you can earn $20 for signing up through this link.

Wealthsimple Cash Prepaid Visa Card

The Wealthsimple Cash Prepaid Visa card offers 1% cash back on all eligible purchases. This cash back can be easily invested through Wealthsimple trade or crypto if you are interested in exploring those options.

If you are interested in the Wealthsimple Cash card, you can sign up here. Enter the promo code 3ZTMRL when signing up to earn a $10 bonus.

Conclusion

Prepaid credit cards have their own place and purpose in the market, but the Vanilla Prepaid card does not stand out or have any significant benefits. Sure, it might be a good solution if you are looking for an easy way to bolster your spending on a credit card to meet a minimum spend requirement, but that is about all it is good for.

If you are looking for a good prepaid card, I recommend reviewing the alternatives above as they all either have benefits or rewards that can be taken advantage of whereas the Vanilla prepaid does not have either of those.

Frequently Asked Questions