Tom explained at an open evening that it is not a simple matter of Monzo receiving one charge. In reality they receive multiple charges from ATM owners operators and networks for flat fee usage charges and percentage of transaction chargea
Thanks for the reply and explanation. So the flat fee usage charge is a significant proportion?
I picked option 3. Because of the lack of a joint account we have two cards and therefore get a double cash allowance. Seems to be enough for most people.
Has anything been said as to what is ‘a month’ i.e. a calendar month or a rolling month?
I’m the Monzo user you describe in your blog post. I go on holiday 3 times a year and I use my Monzo card for the holiday. My normal bank account gives me better deals in terms of cash back/interest, so Monzo will always remain a holiday card for me.
I think it is more than fair that you charge the minimum percentage transaction fee you describe in Option 1. I want it to be the cheapest possible for my holiday. I’d also suggest having a minimum bank balance on your Monzo account. Or maybe the percentage can change based off how much money you have in your account over a year or something? Basically, my account sits with £50 in it until I go on holiday again. I’m the one gaming your system. Byrequiring me to have a minimum balance I guess you still get my money to trade with, and the benefit for me is I get the cheapest travel card on the market?
The main reason I use Monzo is because it doesn’t charge me to use it abroad. I think it’s fantastic in its current format and I’m a big fan. I’d be very disappointed if fees were introduced, and I’d consider looking at other banks if so. I hope the costs can be managed without passing them on to the customers.
Agreed Max.
I don’t believe it’s even been stated if it’s a Calendar Month or a Rolling Month.
My gut feeling is that it will the the latter so that it covers the majority of eventualities for Monzo.
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I voted Option 3 btw as it’s closest to what I’d like. Also who needs physical cash abroad now more than a few notes for the odd toll road?
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But then how are monzo meant to recoup their losses…
Option 4: Match the cheapest online bank, e.g. Revolut and Starling.
Great writeup and clever to try the cards in Berlin and SF btw! Would be awesome to also include online banks in the comparison.
I would happily pay a charge for withdrawal still better than my current back however why not look at creating monzo moments where you withdraw with fee then refund if they use the card in the uk and maintain x balance for x days in the month encouraging customers to use the card as their main spend card in U.K and not just saving it for holidays.
So use abroad get charged but create an opportunity to get a refund if continue to use in U.K. I use my card every day for incidental spend leaving bills to trip out of other accounts
There is no right or wrong but definately you should never touch the non ATM charges this would kill you possibly overnight
Good luck “monzo moments” if you use it you can top me up for a coffee
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As so many places around the world take MasterCard, i think a free cash limit is good, and a reasonable charge for taking out more cash. They idea of a bank card is to reduce cash usage.
unfortunately it is not a set proportion across the globe as it varies by region of the world, by bank and by network (and even down to the same bank charging different amounts on directly operated ATMs on their premises and off site at third party premises) so it is not an easy answer but the set proportion is disproportionately large on small value transactions and the percentage charge higher in value on bigger transactions so medium to large transactions proportionately incur the bank less than small to medium transactions. As a generalisation both fixed and variable charges are lower in Europe than rest of world
I’m sure you won’t be missed :). I think this is a perfect example of where offering an incentive to use monzo in the UK would be beneficial
But we need to remember that this isn’t a travel card.
Obviously they are trying to offer the best rates as possible so you don’t need a dedicated travel card. But there has to be some give and take
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Incentivising spending definitely feels at odds with monzo’s budgeting features, and it doesn’t seem like that would stop a small percentage of users driving up costs. People who spend more than average are more likely to travel a lot too.
Option 4. Loyalty reward. Use option 1, unless you are an active member in the U.K., where your useage decreases the charge.
For those that want a travel card there are options like WeSwap:
Yep exactly. I’m seeing so many post asking for a yearly limit so they don’t get charged…thats the issue
The people who are arguing that £200 per month isn’t enough are missing the point: it’s not SUPPOSED to be completely free, because Monzo need to charge some fees to meet their overall costs.
That said, if I’m travelling within much of Europe, £200 a month is normally more than enough because I pay by card most of the time anyway. In more cash-heavy countries, being charged 3% over £200 is still a lot cheaper than any of the other alternatives available to me.
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I don’t mind if it is £25, 50, 100, 200 or 250 a month it is the 3% I object to