KOHO International Fees and Exchange Rates 2024

Koho offers accounts and prepaid cards for spending, across 4 different account tiers which all have their own features and fees to suit different customer needs. Koho cards all offer some cash back on spending, with ways to shop online and in person, and make cash withdrawals. But how does Koho work when it comes to spending or getting money from an ATM overseas?

This guide takes a look at the Koho fees, limits, and exchange rates you’ll want to know about before you start using your card overseas. Plus we’ll introduce a couple of alternatives like Wise as a digital provider with multi-currency accounts and cards with no foreign transaction fees, and the CIBC prepaid travel card if you’d prefer to stick with a major Canadian bank.

Can I use my Koho card internationally?

All Koho account tiers come with a linked card which you can use internationally wherever Mastercard is supported. All you need to do is to look out for the Mastercard logo by the payment terminal when you’re abroad, or on an overseas ATM.

It’s worth stating upfront that Koho accounts can only hold CAD. There are no options for holding foreign currency balances with any account tier.

Holding a foreign currency balance can be helpful for overseas spending as it lets you set your travel budget, and often gets you a better exchange rate too. Instead, with Koho if you spend overseas the cost of your purchase is converted back to CAD to be deducted from your account, using the Mastercard exchange rate and any applicable foreign transaction fee.

We’ll look at what this costs, ways to avoid it and alternatives to KOHO for international spending in this guide.

How does Koho compare on international fees?

Let’s kick off with a quick look at how Koho international fees compare to other providers. We’ve picked a couple of popular alternatives like Wise and CIBC to Koho for Canadian customers spending internationally - we’ll get into more detail about these providers in a moment.

First, an overview on the key fees:

As you can see, the fees associated with each of these cards are quite different, which may mean that one appeals more than another based on how you  prefer to spend and manage your money.

Koho has foreign transaction fees unless you want to pay a monthly charge for a higher tier account, while Wise has no fee to spend a currency you hold, and low conversion fees from 0.43% if you don’t have the currency you need. CIBC and Canada Post both offer free spending if you hold a currency in your account, but apply a foreign transaction fee if you don’t have the required currency in your destination.

Weighing up the potential costs of these different cards is essential to help you pick the one that will work best for you, with the most flexible service and the lowest overall costs.

Koho prepaid card foreign transaction fees

A foreign transaction fee is a percentage fee added to your overall costs whenever you spend in a currency other than CAD. Because Koho is a prepaid card provider, the fee - if one applies - is added to the amount that’s deducted from your account to cover the costs of your purchase or withdrawal. However, the costs to you can vary with Koho, depending on the account tier you pick. Here’s a quick overview:

Koho international ATM fees

ATM cash withdrawal fees apply when you want to withdraw money from your account when you are abroad. These costs can include both a withdrawal fee and a foreign transaction fee.

Here’s a reminder of the total costs - including exchange rate markups - for ATM withdrawals, from the providers we looked at earlier:

Wise card: 2 withdrawals a month, to the value of 350 CAD free - 1.5 CAD + 1.75% after that, no foreign transaction fee

CIBC AC Conversion prepaid travel Card: Varies by currency, equivalent of 3.5 CAD, foreign transaction fee of 2.5% if withdrawing a currency you don’t hold

Canada Post Cash Passport: Varies by currency, equivalent of 3 CAD, foreign transaction fee of 3.25% if withdrawing a currency you don’t hold

Koho card exchange rates

Koho cards only support holding a balance in CAD - which means that every time you spend or make a withdrawal in a foreign currency, an exchange rate is used to convert the spending back to CAD for debit from your Koho account.

Koho uses the Mastercard exchange rate on the day your purchase is processed, plus the 1.5% foreign transaction fee from Koho, if this applies to your account tier.

It’s important to look carefully at exchange rates for overseas spending because the costs can vary a lot depending on the card you pick. Where providers allow you to hold foreign currencies in your account you’ll often find there’s no foreign transaction fee to spend a currency you already hold. You’ll just tap and pay, and the amount is deducted from the local currency balance in your account wherever you are. This can be cheaper than paying a foreign transaction fee - and also means there’s no guesswork. Just add the currency you need to your account, and spend without any conversion required when you’re abroad.

Koho card alternatives in Canada

So, if Koho isn’t the right option for you, what else is out there? We’ve already touched on a few Koho alternatives earlier - let’s look in a bit more detail now.

Wise card

💡 Great for: Multi-currency account with 40+ supported currencies, mid-market rates and no ongoing account fees

Wise accounts and cards can support an impressive 40+ currencies for holding and exchange - and can be used for spending and withdrawals in 150+ countries. There’s no fee to open a personal Wise account or to get a card in Canada - and currency conversion uses the mid-market rate with low, transparent fees from 0.43%. Just add money to your account and either convert to the currency you need to spend for free at your destination, or let the card do the conversion for you with the mid-market rate and lowest available fee.

Foreign Fees & Exchange Rates: Currency conversion uses mid-market rates; Free to spend a currency you hold; No foreign transaction fee, currency conversion from 0.43%; Some free ATM withdrawals monthly before fees begin

Is it safe to use internationally? Yes - Wise is regulated and licensed and has strong digital security measures in place.

Learn more: How to use Wise card abroad

CIBC AC Conversion prepaid travel Card

💡 Great for: Bank issued multi-currency card which supports 10 currencies and has very few fees to worry about

CIBC offers the CIBC AC Conversion prepaid travel Card which lets you hold a balance in 10 currencies and spend globally wherever Visa is accepted. There’s no fee to spend a currency you hold in your account, although a foreign transaction charge applies if you don’t have the currency you need in your account.

Foreign Fees & Exchange Rates: 15 CAD delivery fee applies; No monthly fee; Free to spend a currency you hold; 2.5% foreign transaction fee for unsupported currencies; ATM fees equivalent to 3.5 CAD

Is it safe to use internationally? Yes - CIBC is a fully licensed bank which has industry level security and branch service if you need face to face help

Canada Post Cash Passport

💡 Great for: A multi-currency prepaid card you can pick up immediately in a Post Office, if you’re heading to a country which uses one of the supported currencies

Most multi-currency spending cards in Canada will be mailed out to you, which can take a few days. If you’re in a hurry and heading off to one of the countries which uses any of the 7 supported currencies with the Canada Post cash Passport, this can be a credible option. You can get your card instantly in a Post Office and load up a balance for sending abroad. Be aware that there are a few tricky fees, including a 1.5% charge for using your card in Canada, and a cash out charge if you want to get your card balance back.

Foreign Fees & Exchange Rates: 15 CAD order fee; 2.8 CAD monthly inactivity fee may apply after 12 months; 1.5% fee for use in Canada; Free to spend a currency you hold overseas; 3.25% foreign transaction fee for unsupported currencies, or if you don’t have sufficient balance in a particular currency; ATM fees equivalent to 3 CAD

Is it safe to use internationally? Yes - cards are issued through Mastercard and come with plenty of safety measures and protections to keep your account secure

Koho Card foreign transaction limits

It’s common to find that certain limits apply for foreign transactions when using any payment card. These limits are usually in place to keep customers and their accounts secure. Koho has various limits which can vary based on the account type you have. Here’s a look at the Extra and Everything account plan limits you may need to know about:

How to avoid Koho foreign transaction fees

Depending on the Koho account you hold you may not be able to avoid foreign transaction fees unless you pick an alternative provider. Let’s take a look at a few alternative options and ways to limit the fees you pay:

• Trade up to a higher tier Koho account - you’ll pay a monthly fee but you may get no foreign transaction fee in return. Depending on the amount you spend overseas, this may work out to be decent value

• Get an alternative account from a provider like Wise or a bank like CIBC, which lets you hold foreign currencies to avoid foreign transaction fees entirely

• Read your account terms and conditions carefully so there are no surprise fees to worry about

• Always spend in the local currency wherever you are - if you’re asked if you’d prefer to pay in CAD, say no to avoid extra charges

Conclusion: Is the Koho card good for travel?

Basic Koho accounts have a 1.5% foreign transaction fee, which may be cheaper than your bank’s foreign transaction charge - but that does not necessarily make it the most cost effective option out there. To avoid the Koho foreign transaction fee you need to upgrade to an account with a 9 CAD or 19 CAD monthly charge - which may mean you still end up paying more than you’d intended due to these ongoing costs.

As an alternative, consider getting an account and card which lets you hold foreign currencies. With a provider like Wise you can hold 40+ currencies and there’s no fee to spend a currency you hold in your account. CIBC also has prepaid travel cards for 10 currencies if you’d prefer to stick with a bank - with no charge to spend a currency you have. Compare a few options based on the overall costs and flexibility before you decide which card is best for your international spending.

Koho foreign transaction fees FAQs

Does the Koho debit card have foreign transaction fees?

There are no foreign transaction fees for Koho Extra or Everything account plans. However all other customers pay a 1.5% foreign transaction fee. Compare Koho with an alternative like Wise which has no foreign transaction fee and uses the mid-market rate with low overall costs.

How to let Koho know you are travelling?

You don’t need to let Koho know you’re travelling, just use your card as usual when you’re abroad.

How do I know if I have to pay foreign transaction fees with Koho?

Check your account terms and conditions document carefully as some Koho account plans have a foreign transaction fee - while other plan types have this charge waived. Or skip the foreign transaction fees entirely with an account that lets you hold and spend foreign currencies from a provider like Wise or a bank like CIBC.