Personal Finance

A closer look at KOHO and Tangerine for Canadians spending money abroad

Piyush Singh

28.05.24

Read time 3 minutes

KOHO® and Tangerine® offer helpful international solutions for Canadians wanting to use their money abroad.

We take a look at KOHO prepaid travel cards and Tangerine’s No-Fee Daily Chequing Account, comparing foreign transaction fees, monthly charges and key features to help you choose the right card for you!

Heading abroad? You could check out Wise to exchange currencies, send and spend your money at the interbank or mid-market rate, with various transfer options and a low-cost pay-as-you-go pricing.

Let's take a look at:
International spending with Tangerine and KOHO cards A closer look at KOHO Card plans Spending abroad with Tangerine KOHO vs. Tangerine: Which one should you choose? For an international experience free from monthly fees and exchange rate markups, try Wise!

International spending with Tangerine and KOHO cards

Tangerine and KOHO are known for their convenient Canadian banking solutions.

You can access a range of bank accounts from Tangerine, including Tangerine’s No-Fee Daily Chequing Account and use 44,000 ABMs across the world with the Scotiabank® Global ATM Alliance.¹

Tangerine’s World Mastercard® credit card is a popular option for Canadian customers. You can earn cashback without paying annual fees, but you’ll pay 2.5% in conversion fees for payments in currencies other than CAD.²

KOHO prepaid travel cards let you easily spend money abroad, including up to 2% cashback on purchases like groceries and eating out.³ You can even avoid foreign transaction charges by signing up for KOHO’s Extra or Everything plan.³

Let’s take a closer look at KOHO vs. Tangerine for Canadians sending money overseas.

	KOHO	Tangerine Visa Debit Card
Monthly charges	Yes, you may need to pay monthly charges. This will depend on the account connected to your card⁹	No monthly fees¹
Foreign currency conversion fees	1.5%³	2.5% of the transaction amount, added to the exchange rate¹
Non-sufficient funds (NSF) fees	No NSF fees for all KOHO prepaid cards⁴	45 CAD⁵
ABM Fees outside Canada	You will see a fee of 2 to 3 CAD for ABM withdrawals abroad ⁶	3 CAD for ABM withdrawals that aren’t part of the Global ATM Alliance⁵

A closer look at KOHO Card plans

There are a few different KOHO card plans, including the KOHO Prepaid Mastercard and KOHO Premium Mastercard.

If you’re using a regular KOHO Prepaid Mastercard, you’ll get 1% cashback on groceries and eating out – and up to 5% extra cashback at selected merchants. You can use your virtual KOHO card to make payments online or access a physical card for your trip abroad.⁷

The KOHO Premium Mastercard is a good choice if you’re looking for a few extra perks, including unlimited real-time e-Transfers. You won’t pay any foreign transaction fees with your Premium card.⁸

There are a few things to think about before using KOHO. Let’s take a closer look.

	KOHO Prepaid Mastercard	KOHO Premium Mastercard
Monthly fees	4 CAD per month – you can access your account for free if you set up a direct deposit or load 1000 CAD per month ⁹	9 CAD per month⁹
Currency conversion fees on card payments	1.5%³	No foreign transaction fees
ABM fees outside Canada	Around 2 to 3 CAD per withdrawal	Around 2 to 3 CAD per withdrawal
Free international ATM withdrawals/month	No free withdrawals. You’ll be charged around 2 to 3 CAD for using an ATM to take out money	1 free international ATM withdrawal per month on the Extra or Everything plan⁶

It’s important to factor in any exchange rate fees with KOHO, as the rate used by KOHO may be different from the one shown on the day you make your transaction.

The provider may also add a markup to the ‘real’ mid-market exchange rate – and it could mean you end up paying more than expected for your international transactions.¹⁰

Looking to avoid monthly fees and currency conversion costs? Check out Wise

Spending abroad with Tangerine

You can use your Tangerine No-Fee Daily Chequing Account to send and spend money inside and outside Canada.

Key features of this account include:

no fees for daily transactions
no monthly or annual fees
free access to 44,000 ABMs worldwide
free Interac e-Transfers®
up to 0.10% interest rate
a free replacement card if yours is lost or stolen¹

However, there are some things to think about before using your card abroad. Let’s take a closer look.

Service	Fees
Monthly fees	No maintenance fees¹
Currency conversion fees on Card payments	2.5%¹
ABM fees outside Canada	3 CAD for ABM withdrawals that aren’t part of the Scotiabank Global ATM Alliance⁵
Free international cash withdrawals/month	You may need to pay for all international withdrawals that aren’t part of the Global ATM Alliance⁵

KOHO vs. Tangerine: Which one should you choose?

Both KOHO and Tangerine are popular options for international spending.

KOHO may work for you if you make regular payments overseas. You’ll need to pay a monthly subscription, but you won’t be charged a foreign transaction fee for using your KOHO Premium Mastercard.

Tangerine might work for you if you need convenient spending options in US and Canadian dollars. You can make payments and withdraw money abroad, but you’ll pay a 2.5% transaction fee for non-Canadian purchases.

It’s also important to note that you can’t make a wire transfer with Tangerine, which may limit your options when sending money to friends and family abroad.¹¹

For an international experience free from monthly fees and exchange rate markups, try Wise!

You can use your Wise card to:

send and spend your money in over 40 currencies like CAD, USD, INR, PHP, BLR, CNY and JPY
take out 350 CAD in cash every month for free
track and manage your money abroad
access advanced security features
say goodbye to monthly fees

…. all from the palm of your hand.

One of the best things about your Wise card? You’ll never pay a markup for spending money abroad!

Wise only ever uses the mid-market exchange rate for foreign payments. This is the ‘real’ standard exchange rate. No markups, no hidden fees, no stress.

Whether you’re sending money to a friend in Japan or paying for groceries in France, you’ll always know how much you’re spending. Avoid foreign transaction fees abroad with Wise. Your Wise card uses a simple pay-as-you-go pricing structure – and you won’t pay charges for opening or maintaining your personal account and card.

To start spending money at the mid-market rate, check out Wise.

Join Wise and save when you send your money abroad 💱

Sources

Sources verified on 28 May 2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.