KOHO Prepaid Visa Card Review

Get rid of sky-high interest rates and even save money with KOHO's prepaid credit card.

WRITTEN BY
Lisa Rennie
Updated August 27, 2020


RATING

Consumers looking to take control of their credit card balances, get rid of those sky-high interest rates on their credit cards, and even save money may want to look into what KOHO has to offer. 

KOHO is a free pre-paid, reloadable card that is designed to help Canadians save and better control their spending. With a KOHO prepaid Visa card and its associated app on iOS or Android, you can take the stress out of your daily banking.

The KOHO Visa offers services that are similar to what you’d get with traditional banking, but without all the fees that are typical of working with a bank. Instead, you can cut these fees while also taking advantage of cash back rewards on eligible purchases. Just load your money onto your card, then use it to pay for anything the way you’d use a traditional credit card. It’s also accepted wherever a regular credit card would be.

Let’s take a closer look at the KOHO Prepaid Visa card to help you determine if it’s something worth using. 

What Kind of Prepaid Card Does KOHO Offer? 

While some companies only have one prepaid credit card in their repertoire, KOHO offers a few:

KOHO Premium Prepaid Card

The premium version of the KOHO prepaid card comes with a fee of either $84 annually or $9 per month, but the perks that come with this card may be worth the extra expense. Cardholders can earn rewards while saving on other fees. There are no foreign transaction fees, unlike many other cards that come with foreign exchange fees of anywhere around 2.5%. 

Those travelling outside Canada get one free international ATM withdrawal every month, which can help save about $5 on each withdrawal. You get 2% cash back on gas, groceries, transit expenses, and restaurants, as well as 0.5% on all other purchases.

Koho’s premium prepaid card also offers insurance coverage through its price-matching feature. Any drops in prices on recent purchases can translate into you being credited for the difference. 

How does it work?

Simply scan your transactions by taking a picture of your receipt through the Koho app to see which of your purchases are eligible for a price match. Eligible items will have an image of a magnifying glass next to it. The price difference for those items will then be credited to your account. It’s a handy tool that ensures you don’t pay any more for an item that you have to. 

KOHO Prepaid Visa Card  

Unlike the premium version of this card, the regular prepaid Visa card does not come with any monthly or annual fees. Cardholders can earn rewards on expenses without worrying about credit card balances at the end of the month.

The KOHO Prepaid Visa Card acts as a chequing account and can be loaded easily by sending an Interac e-transfer to your KOHO account or by having your paycheck deposited to the card. 

For the first 90 days, you can earn a 0.5% bonus cash back with a $500 minimum deposit that can be used almost right away. Then, you earn 0.5% on purchases. You can even earn 5% cash back on purchases made at participating merchants that KOHO has partnered with. There is also a refer-a-friend feature that allows you to get a 1% cash back bonus for the next 90 days when the person you refer makes their first transaction within 30 days.

Foreign exchange fees are also competitive at 1.5%, compared to the typical 2.5% you’ll often see. The associated app is also great for tracking your spending and helping you to automate savings.

KOHO Joint Prepaid Card

KOHO allows Canadians to hold joint accounts with others to share finances and savings goals. These accounts can be shared with anyone, including spouses, partners, siblings, parents, roommates, etc. Each person on the account will be instantly notified when a purchase is made so you can all stay in the loop. 

Cardholders will earn 0.5% cash back all purchases, and even higher bonuses when purchases are made at select merchants. 

Pros and Cons of Using the KOHO Prepaid Visa Card  

There are tons of benefits of the KOHO Prepaid Visa card, including the following:

  • Helps you save money
  • Helps you keep tabs on your spending
  • Earn cash back rewards
  • No fees for the free tier
  • No typical fees associated with bank accounts 
  • Compatible with Apple Pay

The cons of the KOHO Prepaid Visa card are as follows:

  • Some features are not available that you can get on the paid premium card version
  • Daily purchasing limit of $3,000
  • Daily withdrawal limit of $600 at ATMs
  • Does not help build credit 

How Much Does it Cost To Open an Account With KOHO?

The cost depends on the type of card you choose to take out. The regular KOHO Prepaid Visa card comes with zero fees, so you can get your card without any upfront payment. The joint account is also free. The premium version, however, costs money. You have the option to either pay $84 annually or $9 monthly. 

How Do You Open an Account With KOHO?

To sign up for a KOHO Prepaid Visa card, simply create an account by entering your email address and choosing a password. You’ll also need to input certain pieces of information, including your full name, phone number, and job title. Once you submit this information, you’ll have the chance to choose a colour for your card. 

Then, you will confirm your home address and your card will be mailed to you. KOHO will then send you a link via text to their app in the App or Google Play Stores. 

Your identity will need to be verified before you get a card. In order to do this, you’ll need to supply two different documents, which can include:

  • Driver’s License
  • Passport
  • Work permit
  • Utility bill
  • CRA document
  • Bank statement

Cards Product Details Overview

Product FeatureKOHO Premium Prepaid CardKOHO Prepaid Visa cardKOHO Joint Prepaid Card
Monthly Account Fee$9$0$0
Foreign Transaction Fees0%1.5%1.5%
Cost Per Transaction$0$0$0
NSF Fee$0$0$0
E-transfer Fees$0$0$0
Rewards0.5% on all purchases; 2% cash back on groceries, restaurants, and transportation; extra cash back with specific merchants0.5% on all purchases; extra cash back with specific merchants0.5% on all purchases; extra cash back with specific merchants
Budgeting and TrackingLimit spending to what’s on the app; sends alerts on every purchaseLimit spending to what’s on the app; sends alerts on every purchaseLimit spending to what’s on the app; sends alerts on every purchase
AccessibilitySmartphone appSmartphone appSmartphone app

Is the KOHO Prepaid Visa Card Right For You?

The KOHO Prepaid Visa card is great for you if you:

  • Have trouble being disciplined about your credit card expenditures
  • Need some encouragement and help with your savings
  • Want a card that doesn’t come with all the fees that are typical of the average credit card or chequing account
  • Are looking for a way to easily budget your finances 
  • Like the idea of being financially rewarded with every purchase you make

Prepaid Credit Card FAQs

Can I build credit with the KOHO Prepaid Credit Card?

No, the KOHO Prepaid Visa card does not provide a way to build your credit, even with timely payments.

Why would someone need a prepaid card? 

These types of cards are easier to get approved for compared to traditional credit cards and they can help you manage your money without getting yourself into major credit card debt.

Can the KOHO Prepaid Visa card be used for online purchases?

Yes, KOHO works anywhere that a prepaid Visa is accepted, even with online merchants. That said, you’ll need to make your first purchase in-store to finalize your PIN. 

Final Thoughts

The KOHO Prepaid Visa card is one of many prepaid cards available, but this particular card comes with a slew of perks compared to the potential drawbacks that it may have. If you are looking for an easy way to get your hands on a prepaid card while helping you save and earn cash back rewards, the KOHO Prepaid Visa card may be worth looking into.