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, by 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. For travel, the no-FX-fee benefit and the cash back rate work the same way they would on a traditional credit card. The main friction point is car rentals and hotels that pre-authorize a hold larger than your loaded balance, which a prepaid card may decline.
KOHO plans
Extra sits between the free Essential plan and the top-tier Everything plan. The deciding factor for most travellers is the foreign transaction fee, which Extra and Everything waive and Essential does not:
| Plan | Fee | Cash back | No FX fee |
|---|---|---|---|
| Essential | $0 | 1% on groceries, dining & transportation | No |
| Extra | $12 / mo | 1.5% on groceries, dining & transportation · 0.25% other | Yes |
| Everything | $14.75 / mo | 2% on groceries, dining & transportation · 0.5% other | Yes |
The gap between Extra and Everything is small: about $2.75 a month buys the jump from 1.5% to 2% cash back and from 2.5% to 3.5% interest. If you spend heavily in the bonus categories, Everything earns the difference back. If you mainly want no-FX-fee travel spending at the lowest monthly cost, Extra is enough.
Earn rates
| Category | Earn rate | Cash back per $100 |
|---|---|---|
| Groceries | 1.5% cash back | $1.50 |
| Dining and food delivery | 1.5% cash back | $1.50 |
| Transportation (transit, rideshare, gas) | 1.5% cash back | $1.50 |
| All other purchases | 0.25% cash back | $0.25 |
KOHO also runs rotating extra cash back offers at selected merchants in the app, which stack on top of the category rate. These vary and are not guaranteed, so treat them as a bonus rather than part of the base return.
What the earn math looks like
A cardholder spending $2,500 per month, with $1,100 in the bonus categories and $1,400 elsewhere:
| Category | Monthly spend | Rate | Monthly cash back |
|---|---|---|---|
| Groceries | $600 | 1.5% | $9.00 |
| Dining and food delivery | $300 | 1.5% | $4.50 |
| Transportation | $200 | 1.5% | $3.00 |
| All other spending | $1,400 | 0.25% | $3.50 |
| Total cash back | $2,500 | $20 / mo ($240 / yr) | |
| Less: annual fee | −$144 | ||
| Net cash back | $96 / yr |
On cash back alone, the net return is modest once the $144 annual fee is subtracted. The real value of Extra is not the cash back, it is the waived foreign transaction fee plus 2.5% interest on your balance. If you spend meaningfully in foreign currencies, skipping the standard 2.5% FX charge on every transaction is worth far more than the headline cash back rate. If you do not travel and do not spend abroad, the free Essential plan is the better value.
Other Extra features
| Feature | Details |
|---|---|
| No foreign transaction fee | Purchases in any foreign currency are processed with no added FX fee, versus the standard 2.5% on most cards. |
| Interest on balance | 2.5% interest paid on your entire KOHO balance, with no minimum and no separate savings account to open. |
| Credit building discount | The optional credit building add-on (reports payment history to Equifax) is offered at a discount on the Extra plan versus the full price on Essential. |
| Unlimited e-Transfers | Send and receive Interac e-Transfers with no per-transfer fee. |
| Instant spend notifications | Real-time push notification on every transaction. Useful for monitoring spend while travelling. |
| Virtual card | Instant virtual Mastercard for online purchases before the physical card arrives. |
Travel limitations
As a prepaid card, Extra carries the same two travel constraints as the rest of the KOHO lineup. First, hotels and car rental companies typically place a pre-authorization hold, often $200 to $500 or more, that must be available in your KOHO balance, or the hold is declined even when you have enough for the actual charge. Loading extra balance before travel avoids this. Second, KOHO includes no travel insurance on any plan. For trip cancellation, emergency medical, or baggage coverage, a separate policy or a traditional travel credit card is needed.
Good fit if
- You want no foreign transaction fees for travel at the lowest monthly cost, and you do not need the extra half-percent of cash back the Everything plan adds.
- You prefer spending from a loaded balance to avoid credit card debt, and do not want, or do not qualify for, a traditional no-FX credit card.
- You keep a balance in your KOHO account and value the 2.5% interest plus the discounted credit building add-on.
Less useful if
- Your spending is mostly domestic with little foreign currency use: the free Essential plan earns 1% with no fee, and you are not paying for an FX waiver you rarely use.
- You spend heavily in the bonus categories: the Everything plan earns 2% versus 1.5% for about $2.75 more a month, which pays off at higher spend.
- You rely on hotel check-in or car rental pre-authorizations, or you need travel insurance: prepaid cards are frequently declined for credit holds, and KOHO includes no travel coverage on any plan.