Prepaid, not credit
KOHO is not a credit card. There is no credit limit and no monthly bill. You transfer money into your KOHO account (via Interac e-Transfer or direct deposit) and spend from that balance. Because you cannot spend more than you have loaded, there is no debt risk and no credit check required to open an account. This makes KOHO accessible to people who are building credit, avoiding credit card debt, or who simply prefer to spend only what they have. The trade-off: a prepaid card requires active balance management, and some merchants, including hotels and car rental companies that require a credit hold, do not accept prepaid cards.
KOHO operates on the Mastercard network, so it is accepted anywhere Mastercard is taken for purchase transactions. For travel, the no-FX-fee benefit and the cash back earn rate work identically to a traditional credit card. The main friction point is car rentals and hotels that pre-authorize a hold larger than your loaded balance.
KOHO plans
KOHO offers several tiers. The key distinction for travellers is which plan waives the foreign transaction fee:
| Plan | Fee | Cash back | No FX fee |
|---|---|---|---|
| Essential | $0 | 1% on groceries & dining | No |
| Extra | $9 / mo | 1% on groceries & dining, 0.25% other | No |
| Everything | $19 / mo ($84 / yr) | 2% groceries, dining & transportation · 0.5% other | Yes |
Only the Everything plan waives the foreign transaction fee. For travel use, it is the only tier worth considering. The $84 annual fee (paid annually) is the relevant comparison point against traditional no-FX credit cards.
Earn rates (Everything plan)
| Category | Earn rate | Cash back per $100 |
|---|---|---|
| Groceries | 2% cash back | $2.00 |
| Dining and food delivery | 2% cash back | $2.00 |
| Transportation (transit, rideshare, gas) | 2% cash back | $2.00 |
| All other purchases | 0.5% cash back | $0.50 |
Cash back is paid monthly into your KOHO balance. It can be spent like any other balance. There is no minimum to receive cash back.
What the earn math looks like
A cardholder spending $2,500 per month on the Everything plan:
| Category | Monthly spend | Rate | Monthly cash back |
|---|---|---|---|
| Groceries | $600 | 2% | $12.00 |
| Dining and food delivery | $300 | 2% | $6.00 |
| Transportation | $200 | 2% | $4.00 |
| All other spending | $1,400 | 0.5% | $7.00 |
| Total cash back | $2,500 | $29 / mo ($348 / yr) | |
| Less: annual fee | −$84 | ||
| Net value | $264 / yr |
The net-of-fee calculation matters here more than with traditional cards because the $19/month fee is unavoidable even in low-spend months. For cardholders who consistently spend across the 2% categories, the math works. For lighter spenders, a no-fee alternative is likely better value.
Other Everything plan features
| Feature | Details |
|---|---|
| Credit building | Optional add-on ($10/mo) that reports payment history to Equifax, helping build or rebuild a credit score without a credit card. |
| Savings vaults | Separate savings pockets within the app; earn interest on money set aside. Useful for parking travel savings. |
| Instant spend notifications | Real-time push notifications on every transaction. Useful for monitoring spend while travelling. |
| Roundups | Automatically rounds purchases to the nearest dollar and moves the difference into a savings vault. |
| Virtual card | Instant virtual Mastercard for online purchases before the physical card arrives. |
| Joint account | Shared KOHO account available for couples or households managing a shared travel budget. |
Travel limitations
As a prepaid card, KOHO has two travel-specific constraints worth knowing before the trip. First, hotels and car rental companies typically place a pre-authorization hold (often $200–$500 or more) that must be available in your KOHO balance. If your balance is insufficient, the hold will be declined even if you have enough for the actual charge. Loading extra balance before travel avoids this. Second, KOHO includes no travel insurance. For trip cancellation, emergency medical, or baggage coverage, a separate policy or a traditional travel credit card is needed.
Good fit if
- You want a no-FX-fee card for international travel but do not qualify for, or do not want, a traditional credit card with an income requirement or credit check.
- You prefer spending from a loaded balance to avoid credit card debt, while still earning cash back and benefiting from Mastercard acceptance worldwide.
- You spend consistently on groceries, dining, and transportation and want 2% cash back on those categories with your cash back paid monthly into a balance you can use immediately.
Less useful if
- You rely on hotel check-in or car rental pre-authorizations: prepaid cards are frequently declined for credit holds, which can create friction at the counter even when you have the funds.
- You want travel insurance included: KOHO has no travel medical, trip cancellation, or baggage coverage. A traditional travel credit card or standalone policy fills this gap.
- Your monthly spend in the 2% categories is low: the $19/month fee requires meaningful grocery, dining, and transportation spend to justify. Light spenders are better served by a no-fee alternative.