Next up in the ever continuing rewards devaluation race is KOHO. As today, the issuer of prepaid Mastercards has lowered the earn rates on the popular ‘Extra’ plan option for their cards.
Up until April 1st, 2024, the Extra Plan offered 2% cash back on groceries, transportation, eating and drinking plus 0.5% cash back on all other purchases. As of April 2 those rates have been cut to 1.5% in the accelerated categories and 0.25% on all other purchases. Everything else on the Extra plan for the card remains the same including No Foreign Transaction fees and a $9 per month fee.
For a prepaid card that has No Foreign Transaction fees, the 1.5% return is still a good return. The 50% cut in all other spending hurts – 0.25% is a low return compared to competitors in the market. And considering the fee is still $9 per month with no nothing to make up for the earn rate cuts leads us to describe the change with one word: Devaluation.
Click here to learn more about the KOHO prepaid Mastercard.