The Digital and physical Koho Visa Card that is changing the industry.
An integrated app and a free pre-paid card, the KOHO Prepaid Visa Card provides real-time insights into your everyday spending. With the perks of a credit card, including cash back on all transactions, this no-fee card performs similarly to a checking account. Find out if you should get a Koho Visa Card.
With KOHO you can:
Save Money
Build Credit History
Receive Cash Back
Track all Expenses
Numerous “FinTech” applications that promise to help you manage your spending are available in Canada. While some send you a pleasant text message when you are overpaying, others connect to your bank account to import your transactions and assist you in budgeting in real-time. However, the main flaw with most of these apps is that there is no ability to set spending limits. When you exceed your budget, they can alert you, but they can’t stop you. The KOHO, a free pre-paid, reloadable card with an integrated app that allows you to earn cash back, can be the ideal addition to your financial toolkit because it enables you to do just that. Read on for more information in this KOHO review.
What is KOHO?
Canada is one of the most costly countries in the world to bank in due to monthly account fees, overdraft fees, and transaction costs. KOHO, a free chequing account with a card and app, was founded in 2017 with the intention of helping Canadians save money on banking fees.
It resembles a hybrid of a credit card and a checking account. You deposit funds into your KOHO account, much like a chequing account, and then use those funds as needed. Your KOHO card works just like a credit card, allowing you to make purchases everywhere Mastercard® is accepted while also earning rewards like cash back.
The key distinction is that, unlike a credit card, you are using your own money and not borrowing it. This implies that you’ll probably be more frugal with your money and save more. In actuality, the typical KOHO user saves around 7% of the money they deposit into their account.
How KOHO Works?
It is a Prepaid Mastercard®, and that is how you use it. It’s simple: merely open an account, transfer funds from your existing bank account via Interac e-Transfer, or set up automatic payroll contributions.
After that, use your KOHO card to make purchases online or in stores. It operates similarly to debit or credit. Wherever Mastercard® is accepted, use your KOHO card to pay for groceries, coffee, and your monthly expenses.
The KOHO app allows you to track your spending after you start spending, set savings objectives, and check your balance. You will accrue 0.5 percent cashback on all of your purchases once your transactions have been submitted to the app.
Key Features
KOHO has fantastic perks for a prepaid debit card, despite the fact that it isn’t a credit card and won’t help you raise your credit score. The following are a few of the main advantages of utilizing a KOHO card:
Free: Since there is no monthly cost associated with a standard chequing account, using a KOHO card is less expensive than using one. Interac e-Transfers and ATM withdrawals are free, and there are no account fees or card replacement costs.
0.5 percent Cash Back: When you shop at KOHO, you get 0.5 percent cash back. With KOHO premium, this cash back rises to 2%.
Promotion: Use the referral code GUCUFYEY to sign up and receive a $20 instant cash bonus (after you load your account and make your first purchase with no minimum within 30 days).
Savings: KOHO involves more than just spending; it also involves saving. On your KOHO Earn Interest balance, you can receive 1.20 percent interest. To make sure your objectives are completed on schedule, you can even create savings goals and automatic deposits. It’s also free!
Early Payroll: By setting up direct deposit, you can receive $100 of your paycheck up to three days early and without paying any fees or interest.
Summary: Use KOHO to boost your savings objectives by assisting you with money-saving opportunities each time you make a purchase. This feature allows you to set it up such that it rounds up every $1, $5, or $10 and contributes the difference to your savings objectives.
Stellar App: Check your account balances, send money, reload your KOHO card, and set up automatic bill payments via the KOHO app.
Apple Pay: Thanks to KOHO’s Apple Pay technology, you can link your KOHO card to your iPhone and make in-store purchases using just your phone if you forget your wallet or don’t like carrying around cards.
Financial Coaching: Available through KOHO if you take the effort to set up direct paycheck deposits. You can receive counselling on a range of subjects, including debt repayment, saving, and budgeting, through this service, which is free.
Joint Accounts: You may now register a joint KOHO account with your partner or family members to take advantage of all the usual KOHO benefits, such as high-interest savings accounts and cost-free Interac e-Transfers, and to earn rewards even faster.
CONS:
Daily limit of $3,000 on purchases, $600 at ATMs
No RRSP, TFSA, or RESP accounts
Refunds sometimes take a long time to be refunded back to the account
KOHO PREMIUM
For a price, KOHO also provides a premium subscription service that grants you access to extra perks. You may enhance your cash back rewards on every dollar you spend on groceries, dining out, and transportation from 0.5 percent to 2.0 percent for an annual charge of $84 (or $9/month). Additionally, KOHO waives its foreign transaction fees, which on transactions made in foreign currencies can amount to up to 2.5 percent.
KOHO’s Premium price match guarantee, which promises that they will credit you the difference between the price you paid for an item and the lower price offered elsewhere, is available to premium members only.
How does KOHO compare to other cards?
Since KOHO is not a credit card, there aren’t many direct rivals for it. In reality, the STACK Mastercard is the only other financial product in Canada that functions similarly to the KOHO card. Similar to the KOHO card, the STACK Mastercard is a prepaid Mastercard that you may load with money through Interac e-transfer. The STACK card has no foreign transaction fees, just like the KOHO card. The sign-up bonus for this card is $5.
A secured credit card, which requires you to guarantee your credit limit with a cash deposit, is a similar kind of card to the KOHO card. Because the cash deposit is held in trust and your transactions are treated as debt that must be repaid each month, these cards are not exactly the same as the KOHO card. Secured credit cards can help you develop or restore your credit because they are a debt management tool, whereas the KOHO card is unable to do so.
Although it can be used to assist stay in the black, it differs from the finest budgeting applications.
SIGNING UP for the KOHO Card
It takes around five minutes to join up for KOHO. To create your account, you must first enter your email address and password. Enter your referral code on the first screen to potentially receive bonus cash back.
You must provide basic details about yourself, such as your complete name, your place of employment, and your phone number, on the second screen. You can select the colour scheme for your KOHO card from three possibilities on the third screen after clicking “submit.”
Finally, in order to have your KOHO card mailed to you, you must verify the home address that is listed on your photo ID.
Once your account has been fully created. You’ll receive a link to KOHO’s app on the Google Play Store or the App Store via text message. Your account setup will be finished after you log in using the app.
Promotion: Use the referral code GUCUFYEY to sign up and receive a $20 instant cash bonus (after you load your account and make your first purchase with no minimum within 30 days).
On May 16, 2022, the KOHO Prepaid Mastercard® updated their product offering from Visa to Mastercard®. New users will receive a Mastercard® from this date forward while existing users have the option to make the switch until October 2022. A new KOHO Physical Mastercard® will be sent to the user within 10 business days once a request is received and during this time period users will be still be able to utilize all of the features available in the KOHO mobile app.
Is KOHO Worth It?
The prepaid, reloadable Mastercard® from KOHO can be a great choice if you want to earn cash back but find it difficult to stick to your spending limits while using a credit card. One of the best prepaid cards on the market, KOHO has no fees, built-in capabilities to help you save money, and offers cash back rewards of up to 2.0%.
1 thought on “KOHO Visa Card – Everything you need to know in 2022 Review”