Is KOHO a Credit Card or Debit Card?

KOHO is neither a traditional debit card nor a traditional credit card.

It’s a reloadable prepaid Mastercard®:

• You load your own money into KOHO

• Then you spend on the KOHO card anywhere Mastercard is accepted

• There’s no revolving credit balance and no traditional purchase interest like a credit card

So in everyday life, KOHO feels a lot like debit. You’re spending your own funds, but it runs on the credit card network (Mastercard) for payments.

How KOHO Essential Fits In

If you’re thinking of KOHO as a “debit alternative,” KOHO Essential is the core everyday plan that makes this most clear.

With KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can add Credit Building for $10/month, it's an affordable way to build your credit history

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

So… Is KOHO a Credit Card?

No, not by default.

• You don’t get a credit limit to borrow against

• You’re not charged purchase interest for carrying a balance, because you’re spending your own money

• Simply using KOHO’s prepaid card won’t typically build credit history on its own

Is KOHO Like a Debit Card?

Functionally, yes—KOHO is much closer to debit than credit:

• You’re spending only what you have

• You can set it up as your everyday account for income and bills

• You can use it for online purchases without a traditional credit card

The big difference from a classic debit card is that KOHO runs on the Mastercard network, so it’s accepted widely like a credit card.