As I see it the issue is that Monzo wants to keep offering no ATM fee abroad but some people are only using the card for this purpose.
So simply there needs to be a way to split these 2 user groups up as a regular user who goes abroad might want to have more than £200 in local cash, but still doesn’t want to pay. But this user has earned monzo money through interchange for their domestic transactions
Surely this user should have a tiered level of foreign ATM for free that is linked with their domestic spending.
Just spent 3 weeks in Holland… Supermarkets dont take the card, cafes sometimes didnt take the card, in general I had to keep cash around because the Ducth favor maestro / chip and pin and Monzo wasnt a sure thing. In a perfect cashless world I would agree but it isnt one yet.
The allowance is arbitrary - how do you decide how much is enough for every country and every circumstance
People don’t use the allowance for the £200 then go back to not using the card
The fee in actual cost (option 1 vs 2 vs 3):
£_200 = £2 / £4 vs £3 vs free
£_400 = £4 / £8 vs £6 vs £6
£_600 = £6 / £12 vs £9 vs £12
£_800 = £8 / £16 vs £12 vs £18
£1000 = £10 / £20 vs £15 vs £24
I went for Option 3, only because I don’t travel abroad that often (once or twice a year max). If Option 3 also didn’t prove to be sustainable down the line, I’d do for Option 1.
You’ll be able to transfer money internationally within the current account app with services like TransferWise - No more need to cash out Euro notes and manually deposit them into your EUR bank
I think the idea behind it, it’s to deter people from just using Monzo once to withdraw all that allowance. If you set a lower monthly limit, you kind of “force/remind” them to use Monzo on a monthly basis… That said, I actually feel the 200 GBP allowance should be enough as long as you have your accommodation sorted out and you intentionally pay by card on all the establishments you can.
An alternative that has already been suggested here is to be able to increase your allowance by your actual spending, so people who use their Monzo cards on a daily basis, will benefit the most and would be a way to reward them for their loyalty.
Hi, Is it possible to know the maximum amount that can be withdrawn in one single time?
And as well maximum amount in total in one day?
Sorry maybe I should know this but thanks in advance!!
What about using the metric you have to establish a fair and reasonable level of use for the whole community; where above that point is considered excessive use? That way everyone is on the same page.
Existing limits exist on the cards so this would just be another of those to keep everyone’s usage reasonable and fair. Perhaps a global limit on fees absorbed by Monzo before passing them on.
As an alternative option, how about an allowance based on overall usage over the last 12 months, including the UK?
This encourages people to use the card (rather than just as a travel card) and means that those who use the card regularly in the UK will receive more of a benefit?
Those who don’t use it as often may still be able to withdraw e.g. £50 per month without charge?
This means Monzo can offset the cost with the income they receive from usage?
I do agree that Monzo should not operate at a loss for oversees cash withdrawals, however I must say that by giving each card an allowance you are still leaving this service open to abuse. What I expect you’ll see is: each family / group member getting a Monzo card to increase the amount they are able to withdrawal, regardless of the £200 restriction.
For this reason, and simplicity I believe That’s option 2 would be more successful… it’s simple and rectifies your issue. Remember the rule… KISS. Keep It Simple Stupid
Why don’t you work out the typical cost per week for European and International ATM use (i.e. if people typically withdrew £300/week, at 1% and 2% that’s £3 and £6 respectively), then sell (via an in-app purchase or similar) “Unlimited Withdrawals” for a week at a time, charging £3/£6 (or whatever it typically costs you per week). If people don’t wish to purchase unlimited withdrawals, charge them at 1.5% and 3.0% for EU and Intl. withdrawals respectively (or a flat 2.5%?)
That way, people have the choice of knowing up-front what they’d have to pay, but if they only wanted to withdraw a small amount of cash then they’re not forced into the add-on (but it’d help subsidise loss you made through heavy users of the add-on).
