Monzo - ATM fee chat

As repeatedly stated, the prepaid card programme is being wound up by the end of the year anyway so keeping it won’t be an option. The current account that is being introduced now will carry whatever fees are decided on and you’ll be free to open one or not.


Happy to have a current account in due course, regardless of ATM fees decision.


POS will always be free and at MasterCard exchange rate. Currency withdrawals are being designed so it is affordable for reasonable amounts.

Was there ever a formal decision notification on this issue? I know there was heated debate, we voted and everyone argued but I’ve not seen a formal decision post (been off-grid for a few days so may have missed it).


As in the charging structure for foreign ATM withdrawals? No - that has yet to be announced.

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Richard, I think you know this is incorrect. Monzo clearly stated that the three overseas ATM fee options presented were cost neutral – simply covering the costs incurred from foreign ATM networks. Whilst a 3% fee is higher than the costs on EU ATMs, it covers the £200/month fee-free withdrawals and the higher non-EU ATM costs.

I know you don’t like this option, and I personally would also have preferred the EU 1%/RoW 2% option which simply covers the costs with no fee-free withdrawal allowance. But we lost the vote. :disappointed: However, it’s disingenuous to say that Monzo will make money off the 3% ATM fee, as they have stated they won’t. The higher percentage covers the free £200 withdrawals.

Overdrafts and the marketplace are Monzo’s current plans for making money. I think this has been well covered.

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I voted Option 1



We’ve not announced this yet but will be sure to communicate the final decision across all platforms when we do (or at least a link to the blog post) This should be in the next week.


They will be making money off those travelling in Europe and using it to subsidise withdrawals elsewhere in the world

All withdrawals will subsidise the free £200 allowance, as 3% is also higher than rest of the world withdraws. But the fact is that as a whole, Monzo will not be making money off ATM withdrawal fees. They will be making money off overdrafts, as you stated. I don’t think conflating those two helps.

The fact is if I withdraw money in Europe with a 3% charge they are still going to be making money out of me but if I go elsewhere it is likely they are paying part of my withdrawal costs. Just because their main revenue stream is overdraft fees does not negate from the fact that ATM charges look likely not to reflect true costs fairly for all but be skewed by an allowance meaning a number of customers play the system abusing the free allowance while others are charged 1-2% over the odds

To quash any inference in differentiating between subsidising ATM withdrawals and making profit as a whole, :monzo: Monzo have been VERY transparent:

"…we have three suggested options to put to the community. We’ve modelled these extensively based on historical data to get to numbers that are:
—Non profit making: We want to pass on the fees that ATMs charge, at cost price, and not make a profit ourselves…


That seems plain to me, Monzo are aiming to break even on ATM fees worldwide (having presumably modelled transactions in europe versus the Rest of World) and are not “making money” by charging travellers 3% to withdraw cash (after the first free £200)

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Yes…break even as a whole across ALL the ATM transactions they have, not per individual transaction… So that still means some users losing out if the 3% option is selected instead of the 1%/2% option

Yeah, I voted for option 1 too (with the CEO of the bank) but I’m taking issue with you conflating subsidising ATM fees across the whole customer base to “making money”. That is disingenuous, as was pointed out to you earlier, and implies Monzo are lying in their intention.

Anyway, irregardless of our opinion, the vast majority of Monzo users who voted felt the free £200/3% subsidy model was the best, after, I’m sure, considering all the arguments carefully.


The way you state that this is the way it is happening is a little disingenuous.
Monzo haven’t announced which option they’ll be taking forward so actually we don’t know - it could be option 1, who knows.

Therefore to say:

Is wrong.

But users have voted for the 3% option and not the 1%|2% option Tom etc favoured. Now a bit like the Brexit vote will they ignore that or follow it? I doubt after putting it to a vote that they will then ignore that vote

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I never said they were making money out of all customers just that if they go for the option voted for the users withdrawing in Europe will be paying over the odds while users in rest of world may be paying less than they incurr the bank…so they are making money out of certain users with that option while losing money from other users yet overall they not making profit from it, but those abusing the option by just withdrawing their free allowance are benefiting while Monzo profit from others in order to subsidise the free withdrawals

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I am sure they did NOT consider it carefully for the benefit of the bank, fairness to all, impact on income depending on take up of free allication only, etc, but purely on their own personal gain and benefit

Maybe Monzo could set an example that it’s possible to not follow the result of a referendum to withdraw from Europe(an ATMs) :joy: