From what I’ve seen the MasterCard rules aren’t really enforced. You still hear about the odd little coffee / sandwich shop that refuses Monzo cards because of the prepaid days and there doesn’t seem to be anything anybody can really do about it apart from try to change their mind.
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Monzo brought up the rear with just 6,400 downloads.
Pretty impressive, or pretty odd, given that there cannot be more than a few hundred cards handed out now, unless they’ve pushed on further than we had heard
Delay payments by 24 hours to tackle fraud, banks told
I suspect the figure of 6,400 may include people who’ve recently moved to the UK from the US, and still had their US App Store (or Google Play) account when they first downloaded the Monzo app. I can’t confirm the exact number for Monzo, but I know that at least one UK-only bank sees around 2% of its downloads from US app store accounts.
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That’s a terrible idea
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Actually, I think for vulnerable customers, it could be a great idea. I’d also like a feature in future that would allow a vulnerable customer to have their payment reviewed by someone they trusted, before it actually went through. I know the elderly aren’t Monzo’s core demographic, but some are more easily confused, and they’re also far more often the target of scams, and this kind of feature could reduce the likelihood of being scammed.
One reason many people give for not banking online is that they’re worried about making costly mistakes, and such a feature would reduce the fear factor, and thus possibly open up Monzo to more customers.
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But this is to target scams. How many people know they’ve been scammed within 24 hours? Even when asked they think it’s legit in a lot of cases
Seems like it’s a tick box exercise with no real thought of a better solution
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Yeah I agree.
Add a 24hr delay. I get person X to check the payment, they say it’s OK as well (2 people have now been party to the scam) and the payment goes out 24hrs later.
Fast forward a week and ‘hey it was a scam’? How does the delay help?
It’s actually a pretty sensible idea, if you consider it as being a form of escrow. It stops the account having everything withdrawn or moved out mere hours if not minutes after the fraud has been perpetuated, which gives the bank a greater chance of recovering money. There are a lot of people who realise they have been scammed within 24 hours, but at the moment they could realise within two hours say, and not get the money back because the scammer has already withdrawn it.
Granted, it adds friction and goes counter to the previous trend of making access to money quicker - Faster Payments, cash deposits registering more or less instantly, cheque clearance times being reduced right down. But that’s the nature of the problem. You can’t improve access to money and reduce fraud. Either access is easier and fraud risk goes up, or fraud risk is mimised but access is reduced.
There is no single right answer that will fit everyone. But I think this idea, while not making everyone happy, will increase the amount of fraudlent transfers that banks will be able to recover.
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If possible then, if ALL payment/banking systems bought into this, they could implement a 24hr holding phase.
To the user, it looks like everything is immediate (same for the vendor I’d guess) but the money only moves 24hrs later… more troublesome to think through the ramifications but … well I’m not sure if it’s better or worse from a ‘how on earth do we manage this’ viewpoint!
When people get scammed they don’t realise it obviously, so when they send money to a scammer for a purchase , technical support etc they will factor this delay in, so the scammers will say that they’ll fix the computer in 24hrs when they receive the money, and people will wait an extra day before chasing up their ‘purchase’
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Easy fix
“3 million customers refuse to use Tesco because they won’t accept Monzo”
0.001 seconds later suddenly Tesco accepts Monzo
Power of the people!
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Or 3 million Tesco customers refuse to use Monzo? 
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And this delay could apply just for new payees, so most day-to-day payments wouldn’t be affected.
You are Anne and I claim my £5.
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Different perspective on the Tesco issues:
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They don’t say that, do they? They take issue with the 50p/day overdraft charge, but I think that’s different from repackaging debt, which (to me at least) implies reselling debt or other opaque financial instruments.
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I agree 100% with klarna, that product has always worried me. Tried to buy some shoes and it tried to link to klarna with no info what it was
But the monzo overdraft sign up flow and t&c’s is pretty clear
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10 posts were merged into an existing topic: Klarna discussion