This makes a prepaid debit card a powerful budgeting tool. Doing so makes it impossible to spend more than you want at a given time. For example, if you have a budget of $500 for the week, you can load that amount onto your card. Prepaid debit cards – Prepaid debit cards are very similar to standard debit cards but with a twist: You can control how much money you have available to spend at any given time. Standard debit cards provide you with quick and easy access to your money without the need for cash. They allow you to spend as much money as you have in your account. Standard debit cards – These cards are directly linked to your chequing account. In Canada, the two primary types of debit cards include: There are actually multiple types of debit cards out there, each of which has its own advantages and disadvantages. In fact, you’ll often get issued a debit card automatically when you open a Canadian chequing account. In a society that’s becoming rapidly cashless, getting a debit card is a must for all newcomers to Canada. It’s as simple as that.ĭebit cards are popular financial tools because they make it easy to purchase goods and services without cash. If you don’t have money in your account, the transaction won’t process. That merchant or ATM then enters your debit card details into a payment system that automatically debits your account for the total cost of your purchase. The idea is that you give a merchant or ATM permission to withdraw funds from your chequing account to pay for goods or services. You can also use a debit card to retrieve cash from an ATM. What is a debit card?Ī debit card, or bank card, is a type of electronic payment system that deducts money from your bank account whenever you make a purchase. That’s why we’re taking a look at the pros and cons of each option so that you can make the best decisions for your financial life.īefore we get into the nitty-gritty details as to whether you should get a debit or a credit card, let’s first look at the differences between these two payment methods. But most newcomers find that it’s easier and more practical to start with a debit card and to hold off on applying for a credit card until a little later down the line.Įither way, deciding whether to open a debit or a credit card isn’t always easy. The reality is that you’ll likely end up with both a credit card and a debit card as you start your new life in Canada. One of the most common questions we hear from new residents in Canada is whether you should get a credit card or a debit card for your daily purchases. This can make it tricky to determine the best way to handle your money.

Regardless of what your financial situation was before you immigrated, you’ve probably found that banking is different in Canada. As a new Canadian resident, you have your work cut out for you when it comes to managing your finances.

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