Card is not accepted almost anywhere in Isla Mujeres, Mexico

It was a VISA. Getting cash out surprised me the most with Monzo as it worked in lesser known banks rather than Scotiabank etc

It may be (and this is a guess) a VISA vs MasterCard thing. I’m not sure If Monzo will reimburse the 3% as that isn’t their charge they debit - but I could be wrong.

You’re probably right, but that’s not my particular issue. It’s more the fact that I had to use an alternative card due to Monzo not working, therefore incurring a cost on every transaction.

There’s an expectation that not all merchants accept all types of cards, monzo don’t have to reimburse but they might as a goodwill gesture especially if it’s not much,

By me they didn’t offer to reimburse , but I didn’t ask though.

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If its a MasterCard acceptance issue (and not a Monzo acceptance issue) I’d find it hard to see any justification for Monzo to re-imburse as it isn’t really their fault. But as @kolok has said, they may do it as a goodwill gesture or for D&I.