It’ll use the card’s magnetic stripe.
We’ve discussed with PayPoint ways to remove this delay - they may be able to make a change which would allow us to eliminate it, but there’s no chance of it happening this year.
The technical reason for it is because normally the communication between PayPoint and Monzo looks like this:
- Machine in the shop → PayPoint: I’ve got a bright card here, put £100 on it
- PayPoint → Monzo: New deposit! £100!
- Monzo → PayPoint: OK!
- PayPoint → machine in the shop: OK!
- Machine in the shop: [prints successful receipt]
But sometimes, if something goes wrong, it could look more like this:
- Machine in the shop → PayPoint: What is this? Pink? Orange? IDK but £100 please
- PayPoint → Monzo: New deposit! £100!
- Monzo → PayPoint: OK!
- [Machine in the shop’s internet connection dies]
- [some time passes]
- Machine in the shop: [prints unsuccessful receipt]
- [some time passes, up to a maximum of 10 minutes]
- PayPoint → Monzo: Sorry but actually something went wrong, don’t do that £100 deposit
- Monzo → PayPoint: bummer
So we have to wait for 10 minutes after that initial “New deposit!” message to make sure we don’t get a subsequent “something went wrong” message. If PayPoint can add a message which says “Nothing went wrong and the machine in the shop says it printed a successful receipt” then we can remove the delay.
I’m not sure how monese get around this, perhaps they credit you immediately and then take the money back if something goes wrong?