Don't Go, Prepaid Card

I’m maybe one of the few people who didn’t want this to happen :frowning:

I signed up for the prepaid card and using it abroad, because I travel a lot. A current account wont offer me any advantage apart from open me up to potential charges and/or liabilities. I have current accounts for savings vehicles, I really dont need another :confused:

Will I be automatically opted in for a current account? how long will the prepaid accounts work for?

Eventually, Monzo will close prepaid option and only allow current accounts. I don’t think it will be automagical without asking you for an opinion ;), but eventually it will be current account or nothing. Prepaid Monzo will be definitely phased out.

Current account has no basic charges (to keep account open or similar), no requirements (2 DDs and all salary paid into it - this type), and functionality remains really similar to what prepaid card was (even top ups remain). There are benefits of current account too:

  • debit card is better than prepaid, some merchants block prepaid cards or cards without 3D secure
  • in-house processor for current account, while now Monzo needs to rely on not-really-reliable third party companies
  • FSCS protection up to £85,000
  • Bank transfers (means you can move money out easily, while now prepaid card is a hassle)
  • and - optionally - you can get a card with your name, if you want to.

Monzo has been really strict about their policy for charges - no surprises for users. You won’t get overdrawn without explicitly opting for it in the app. Bounced direct debits won’t cost a penny, and so on.

Monzo haven’t let you down so far (I hope? :smiley: ), so maybe it’s worth giving it a shot - or at least stick around and see what other people think about current account experience? :slight_smile:


Well, as I dont use the card for GBP transactions, I don’t think I could qualify for a current account right now even if I wanted (which is obviously fine with me). Also as this is a phone snob (iphone) exclusive (why is that?) at the moment that rules me out :wink:

I didnt know Monzos policy on charges, but the pessimist in me thinks that’ll change in time once Monzo have achieved a bit of market share, like all ventures eventually do. For my purposes, I have backup prepaids that offer similar currency related features so I will be OK.

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The current restrictions on applying for a current account is because it’s a limited roll-out to carry out some further testing. What you’re seeing there is not, then, the actual current account. I’m pretty sure that the idea is when they do roll out current accounts properly the Android app will be ready.

But, in short; what they’re doing at the moment doesn’t affect you in any way yet. I don’t think what they’ll do in the near future will affect you either, the word has always been that the current account will be functionally identical to the pre-paid cards.

tl;dr you don’t need to worry about current accounts right now, and you probably won’t need to worry about how they’ll affect you in the near future either.

Just to confirm, that’s correct :+1:

Click the :arrow_down_small: in the top right hand corner of the quote, to view the full post.

The prepaid cards do have advantages, particularly in the lower verification required. I seem to remember the idea of u18 accounts being floated, prepaid might make a return there or for those who can’t meet current account requirements?

We know that the current accounts will be available to under 18 year olds (17 yo’s for sure :wink:) so the main question there is how much younger..

I don’t see why they should need prepaid cards though. At the end of day, as long as they’re not being offered overdrafts, why shouldn’t they have access to the rest of the current account functionality?

Given these challenges, I would be astonished if a Monzo keeps / reintroduces the pre-paid cards for any application too -


Mmm, that’s true. I expect it makes very little sense paying to use someone else’s infrastructure when you have your own! However, Monzo could offer it’s “own” prepaid style card, ie. not Wirecard, running on it’s infrastructure?

Monzo makes a considerable loss on the Prepay card model; about £50 per user per year. That’s unsustainable given the growth.

It’s clear that the Prepay model is a hook to get potential current account users to try out the app at Monzo’s expense, while Monzo get to trial its systems and grow the app for the eventual current account launch.


Surely the answer is for Monzo to drop the prepaid card but to look at how they eventually include any advantages of a prepaid card that are lost with a current account. I mean, what is a prepaid card? It’s just an additional card with a preset balance?


Silly question but when the prepaid card goes …whats the point of Monzo? Surely alot of folk are here due to the security of loading a prepay card an going on holiday and having the benefit of the mastercard exchange rate, plus due to it not being linked to your main account less chance of fraud as prepaid cards cant do recurring charges and wont accept preauths…with the current account that will all change

only to the extent of how much you “load” your current account card - previously known as a “pre paid card” :slight_smile: + the benefit of 85K FCA protection - Monzo aren’t going to force customers to move all their DDs and pay salaries in - for all intent its still a “pre paid card” if thats how you want to use it


Sorry, I know this is a bit off-topic, but - prepaid cards can’t do recurring charges? Are you talking about a specific kind of charge? Because I’ve definitely got a monthly recurring payment coming off my Monzo card at present.

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This is likely to answer your question. Prepaid cards can support recurring card payments but not the other two. :repeat: :credit_card:

@Swaledaledub Actually, I’d like to flip this question - what’s the point of prepaid? If debit cards are better (wider acceptance), why would you even want a prepaid card? Perceived ‘security’ of prepaid debit card is just something that people say, but I don’t think it’s even real. What is actually more dangerous about using debit card in comparison to prepaid card? I can’t think of any reason, really. :thinking:

You won’t get overdrawn unless you specifically opt in for it. Debit cards have daily withdrawal limit, just like prepaid. You can keep as little money on Monzo debit card as you want. You can use it in exactly the same way as prepaid… but debit is more accepted than debit. ATMs are used in the same way. Monzo debit card can be your 5th backup card or your main one. It’s totally up for us how we use it, but I have yet to hear any decent arguments why someone would prefer prepaid card over debit card.

One thing maybe - opening current account shows up on credit score. Since rules of scores vary between credit score providers, which is then entangled in magical rules for mortage providers, it might temporarily decrease score, but the impact shouldn’t be make it or break it for a mortgage. :smiley:

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I go away on holiday and random trips to europe a fare amount, i use monzo as a way to pay for things whilst abroad from taxis…petrol for hire cars…food from supermarkets and at restaurants and excursions…ive had my card skimmed in the past…ive had double payments come out and random payments so small ive not noticed all come from my debit acc…since using monzo ive had none of that as i load as i spend…plus i enjoy the mastercard exchange rate which is what enticed me to get monzoed in the first place but im assuming that will stop along with the prepaid card ?

It’s most likely due to magnetic stripe disabled on prepaid card (makes skimming a lot harder). or you are very, very lucky :smiley: . Debit cards will continue to have this safety toggle, and maybe even more, including contactless and online toggles?

Instant notifications will also remain, so - based on your description - I can’t see why using Monzo debit card would be any different than your prepaid usage. :slight_smile: If you have any other questions, feel free to ask, this is what community is for. :smiley:

@Swaledaledub Not at all, you’ll still be able to use the Current Account in a similar manner. You’re not gong to be forced to move all your current banking across I believe.

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To clarify: the MasterCard exchange rate remains with the Current Account and there are no transaction fees. However, charging a small amount (at cost) to cover large foreign ATM withdrawals is being discussed due to the disproportionate impact a small minority are having on the majority.

Hope that helps :slight_smile: You can, if you want, use the CA just like the prepaid (a special holiday card) but to be honest it is useful for so much more at home!



I’m currently have the prepaid card, and have just opened a current account. I’d like to continue to use both for different functions - is that going to be possible going forward? I know for now I have to have two separate apps, but will I still have that option later on?


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