Mastercards and Visa Cards for Canadian Teens

CIBC Launches First Debit Visa Card in Canada

• Firstly, please read my article about acceptance of prepaid cards at places like hotels, flights and for car rentals.
• Secondly, I have a more
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aka: CIBC Dividend Infinite Visa vs Capital One Cash Back Plus Platinum

It looks like CIBC card is the successor card to the CIBC Dividend Platinum Visa card that I've written about before.

The tiers are the same, and there's still an annual fee, but as a nice plus, the card now includes:

Well, it's January 27th, and I just received my CitiMastercard Enrich Rebate cheque. Their credit card is pretty much the only one in Canada that gives you 1% cash back from the first dollar with no annual fees and no minimums (though there is a max rebate of $250/year I think).

The cheques are mailed out of Toronto/Mississauga, so it's likely an overnight thing for me, but those out East or West might need to wait a few days before getting them.

As stated in my review of the prepaid cards available on the Canadian market, there are those that are non-reloadable and anonymous, and those that are reloadable and engraved with your name and everything.

Seriously, I'd highly recommend reading through my Canadian Prepaid Visa & Mastercard review. Seriously. 

Avoid the MuchMusic Prepaid Card, you pay too much for what you get. 

My Personal View on Air Miles Credit Cards

I prefer cash-back cards, less hassle and you never have to worry about your points getting de-valued, but an Air Miles credit card is still better than a no-rewards card!

I got hit with an overlimit fee on my TD Rebate Rewards Credit Cards

I'll say that these fees are a bit sneaky.

The cards give you a "credit limit", then they let you surpass that limit, and charge you $20 for it. So much for it being a limit. 

For Christmas, I'm sure many people are looking toward possibly buying one of those prepaid Mastercard or Visa cards. I would say DON'T buy one of these as a gift.

Prepaid Visa & Mastercards Are Worse than Store-Branded Cards as Gifts

It's like giving money that's less useful than money. Why would you want to do that? People like money, and I don't believe (unless it's really thoughtful) much in giving out non-unique gift cards when one could just use the cash.

Why Get a Prepaid Mastercard or Prepaid Visa?

In my opinion, there are only two reasons to get a Prepaid Mastercard/Visa card:

1. You can't get a credit card, but need to make some purchases that require a Mastercard/Visa Credit Card
2. You have a credit card, but want to make a purchase 100% anonymously, or pseudo-anonymously.

The Muchmusic Prepaid Mastercard is the kind that you need to fill out an actual application for, and you get a Mastercard that has your (teen's) name on it.

Planning on travelling overseas, like to Europe or Australia, with your Mastercard or Visa Debit Card?

The answer is yes, it will work as a signature transaction the same way that a credit card is accepted. I've never had a problem using my US-issued Paypal Debit MasterCard or US-issued National City Debit Visa Card in Canada. I don't see why I'd have a problem overseas either. 

Doing cash withdrawls at an ATM may be subject to extra fees. There usually will be a currency conversion charge or some such, but it isn't too major. 

2009 Update that's still true in 2012: MBNA Smart Cash Blows Citi Enrich Out of the Water

Citi's Canadian Credit Card Division got bought out by CIBC.

2012 FYI: I did end up getting charged the $25 annual fee, it just worked out that I got charged it as late as possible as it was charged on your anniversary date. The fee is rebated in future years as long as you do $1000/year, but you can't avoid getting dinged for it at least once.