Uncovering Hidden Fees: The Pitfalls of Reloadable Payment Cards for the Unbanked

For the first time in a long time, I have a real bank account—and let me tell you, that’s a huge milestone.

It’s easy to take something like a bank account for granted. But when you don’t have one, everyday life becomes a maze of barriers and unnecessary costs. You end up relying on cheque-cashing outlets that take a cut of your money just for access to it. Some places don’t even accept cash anymore, and legally, they don’t have to. So without a bank account or a debit card, you’re locked out of the economy in subtle but significant ways.

When I was on Ontario Works, I was given what they call a "Reloadable Payment Card"—an RPC—through RBC, under their "Right Pay" brand. At first, I thought it was a good thing. It seemed like a logical solution for people like me who didn’t have a bank account or the full set of ID documents needed to open one.

But I quickly learned that this card isn’t what it seems. It's not just a helpful tool—it’s a financial trap.

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Not a Bank Account—Just the Fees of One

The RPC looks like a debit card, but it’s not connected to a real bank account. It’s not Interac-compatible, meaning it processes transactions as if it’s a Visa “credit” card—even though it’s not credit and you can’t use it to build credit.

You can’t use the RBC mobile app to check your balance or track your spending. Instead, you’re pushed to a separate, clunky website. And unlike actual RBC accounts, the funds on your card aren’t CDIC-insured. That means if the bank were to collapse, you could lose your money entirely.

And the real kicker? You can’t deposit your own money onto it. Only social services can load the card.

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How RBC Makes Money Off the Poor

You’d think that would be the end of it. But RBC has turned this card into a quiet moneymaker through a range of sneaky fees:

• Withdraw cash from an RBC ATM more than four times in a month? $2 per transaction.

• Use a non-RBC ATM? $2 fee.

• Check your balance at an ATM more than twice in a month? 50 cents per inquiry.

• No money loaded by Ontario Works for 12 months? That’s considered "inactivity" and triggers a $2.50 monthly fee, even if there’s money still on the card.

None of this is because it costs RBC anything significant to process these actions. The infrastructure is already there. These fees are profit, plain and simple—made on the backs of people with no other option.

When you’re only receiving $325 a month, even a few dollars in fees can be the difference between affording groceries or not. These aren’t just minor inconveniences—they’re real, material setbacks.

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Lack of Choice Isn’t Consent

Let’s be honest—most people receiving these cards aren’t reading the fine print. Some can’t. Some don’t know to look. And many, like me at the time, just don’t have a better option.

This isn’t a service—it’s a scheme. It allows RBC to quietly skim from social assistance recipients, while appearing to be part of a public-private solution.

What makes this worse is that RBC is one of the most profitable financial institutions in the country. They don’t need to charge these fees. They likely already get paid by the government for facilitating the program. The fees are just extra padding for the bottom line—earned by nickel-and-diming people who are already struggling.

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A Better Way Forward

I’m relieved to say that starting in May 2025, my Ontario Works payments will go directly into my new bank account. That’s a win for me. But thousands of others are still stuck in a system that punishes them for being poor.

RBC—and institutions like it—have a social responsibility that they’re failing. It’s not enough to offer a financial product that meets the bare minimum. These programs must be fair, transparent, and free from exploitation.

Until then, I’ll keep sounding the alarm. Because financial survival shouldn’t come with hidden fees.