KOHO Visa Review
You've probably seen the ads by now. The new kid on the block is poised to make for itself a great entry in the Canadian financial market, offering a whopping 1% cashback on all purchases. This new player has a new mission in mind, which is to enable all Canadians to take full control of their finances.
KOHO leverages the built-in features of prepaid cards and somehow mingles them perfectly into a hybrid card that is both a credit and a debit card. In fact, KOHO is much more than just a prepaid card you buy at the grocery store, but a personalized card loaded with features & perks that aims to educate users and to enable them to get money back on their purchases.
In this KOHO review, we want to take a closer look at how this Canadian reloadable Visa card issued by a new fintech player can change your life for the better and teach you the benefits that come with becoming a master of your finances. With this card, you'll get two steps closer to reaching your goal, whether it is to buy a new car or get the home of your dreams.
Keep reading to understand how KOHO works and to discover the astounding benefits offered by this company.
What is KOHO?
KOHO is a physical pre-paid VISA card that integrates flawlessly with a mobile app that lets you stay in control of your spending. This card is free and can be loaded with a certain amount of money.
You can use the KOHO card to make purchases to your favourite retailers, earn cash back, round up your purchases in order to save the change, and gain access to the Premium features which offers you additional benefits.
Basically, KOHO is a one-of-a-kind hybrid card that offers you the best of both worlds. First, it allows you to spend your hard-earned cash and even get some money back. Second, it allows you to spend money overseas.
If you want to learn more about how this card works, keep reading below.
How KOHO Works
When you first apply for KOHO, you'll receive a KOHO card in your mailbox. This physical card comes attached with a PIN, so you and only you can activate it. In order to load money into your new card, all you have to do is to transfer the money from your own bank account or to link your debit or credit card with the KOHO card.
One key feature of the standard plan is that you'll never be able to spend more than you have, so you won't have to worry about overdrafts or about credit score. Instead, you can use the app as your own personal savings account. The app, available on both Google Play and Apple Store, enables you to get 0.5% cash-back on everything you buy. You also get a cashback bonus during the first 90 days of 1%.
Inside the app, you can take control of your spending and create budgeting categories, receive instant notifications, and even receive personalized notifications related to the cost of services and products in your area. You can also use the card when travelling overseas and even enjoy no foreign transaction fee with the premium plan.
As you continue using this card, you'll get personalized data to see your spending, so you'll be able to better manage your finances and even put more money aside. You can also create alerts to ensure you won't get over a certain limit. Thus, KOHO might be the best student card and one of the most appealing savings cards available in Canada.
KOHO Key Features and Benefits
KOHO comes with certain features and benefits that make it quite unique. Regardless of the version you choose, be it Regular or Premium, you get access to the following features:
- 1% cash back for all your purchases during the first 90 days (you need to use a referral code)
- Accepted worldwide: you can use the KOHO card in any country where VISA is accepted
- You can select your own design and colour combination to personalize your card and make it totally unique
- 0.5% Power Up cashback on any purchase after the first 90 days
- Round-Up feature: KOHO card enables you to round up your purchases in order to maximize your savings
- Comes with no NFS fees
- No interest rate whatsoever
- FX fees just 1.5%: the usual norm is 2.5%
- Easy connection to PayPal and quick online purchases
- Bill payment: you can pay your bills with ease thanks to this feature which integrates with all Canadian utility companies
- You can easily fund your account using e-transfer or direct deposit
- Leverage the joint accounts feature and get a common account with your spouse, family member or close friend
- Compatible with Apple Pay
- Real-time insights and budgeting categories to enable you to stay on top of any unforeseen payment and leverage analytics to save more money
- KOHO is the partner of Peoples Trust, a CDIC and federally regulated bank. This means that your money is safe. In the worst-case scenario of KOHO failure, you'll be able to receive your money via Peoples Trust.
KOHO Regular vs Premium
When you start with KOHO, you can choose from two unique plans: Regular and Premium. Let's explore both of them below:
KOHO Regular Plan:
- Comes with no annual fee
- Gives you 0.5% cashback on everything
- Has all the features of KOHO debit card
- 1.5% exchange fee for foreign transactions
- ATM fees in another country of $2-$3
KOHO Premium Plan:
- 2% cashback on transportation, groceries, drinking and eating
- Get 0.5% cashback on any other purchase
- You can exchange money internationally without any exchange fees
- Price matching feature
- Increased load and spend limits
- Free financial coaching from KOHO experts
- All of the features of the Premium plan come with $84 annual fee
- New card designs
The KOHO Premium is undoubtedly one of the best foreign credit cards in Canada, being suitable for businesspeople or tourists who travel constantly to other countries.
KOHO Advantages and Disadvantages
Probably the only disadvantage of KOHO is that the premium plan is not free of charge. However, if you're using the card on a daily basis, you can easily recoup your investment of $84 annually, with just the cashback rate. Additionally, KOHO does not offer access to investment funds or bundles, which might be a drawback for heavy users.
Nevertheless, KOHO comes with dozens of advantages that make it one of the most attractive hybrid credit cards in Canada:
- App efficiency: the app is extremely easy to use and quite convenient, being able to replace any traditional banking app.
- Financial coaching: the financial coaching feature available on the Premium account is simply spectacular. You can ask KOHO professionals for advice related to debt, savings, investment, budgeting, and other financial topics. This valuable resource is even more precious in 2020, during the COVID-19 crisis, because it can enable Canadians to take control of their finances.
- Savings goals: another advantage of KOHO is that it lets you create customized saving goals. Once you choose your own goal, you can take a number of concrete steps in order to reach that goal. You'll receive information on how to properly reach that goal and understand how much money you need to save per month to see your goal come reality. Thanks to the auto-saving feature, the app will use the Round-Up to deposit money into your savings account.
- Spend tracking: you can track your spending and gain control over your spending habits.
- Analytics: the app breaks your spending into categories, such as groceries, healthcare, fitness or transportation, to help you see exactly where your money is going.
- Great rewards: getting 2% for certain categories of products and another 0.5% cashback for any other expenses is a great way to round up your income.
The Regular plan is free of charge. However, it takes around $2-$3 for foreign ATM withdrawals and another 1.5% for exchange rate. You have a daily transaction limit of 15 and an account balance limit of $20k. You can withdraw $600 per day from the ATM, but you get no price matching or free financial coaching.
Conversely, the Premium Plan costs $84 and comes with 30-day free trial. It gives you more features, no fees for foreign exchange rates, 1 free international ATM withdrawal per month, a $40k balance limit, and allows you to withdraw up to $800 a day from the ATMs in Canada.
How Does KOHO Compare to the Competition?
KOHO is similar to Stack, with the only difference that Stack offers no cashback program. There is another option called MOGO, which has fewer features but offers better cashback rewards. Overall, KOHO is stronger than the competition in almost all aspects.
Is KOHO Visa worth it?
KOHO is one of the best hybrid cards Canadians can get in 2020. It's free, highly convenient, and offers a multitude of exceptional features. The Premium options are definitely perfect for tourists or business people who have to travel a lot.