You do realise @WillP79 that using supercard with linked credit card doesn’t offer the credit card protection?
As I say, Ive saved thousands this year alone.
ON 08:33, 23RD AUG 2016, FEATHERS WROTE:
Feathers [1]
August 23
The credit card protection is all just a nice theory to me. In all the years Ive been using credit cards iv never had to use it so, as a consequence, it really carries very little importance in my mind. (Not saying its not important, just that its coloured by my lack of need for it)
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WillP79 [3] Will [4]
August 23
Points and consumer protection. Often, if you receive faulty goods or substandard service, and the company fail to cough up, you can claim off the credit card.
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just out of interest Will, if
“I have only used Mondo to run down the initial £100, and an extra tenner just to register it with my internet banking”
why do you have , want or need a Mondo card if you only ever use credit cards and use travelex for forex ?
From the Supercard terms…
If you have any disputes about purchases made using your Supercard, you should settle these with the person from whom you bought the goods or services. We are not responsible for the quality, safety, legality or any other aspect of any goods or services purchased using your Supercard. Remember that once you have used your Supercard to make a purchase or to withdraw cash we cannot stop that Transaction. If your Funding Card is a credit card and you believe you may have a claim under section 75 of the Consumer Credit Act 1974, then you should refer this to your Funding Card issuer.
Not sure if S75 covers foreign transactions, but either way, you still get the miles.
ON 08:44, 23RD AUG 2016, JAMES SMITH WROTE:
jsmith300 [1] James Smith [2]
August 23
You do realise @WillP79 [3] that using supercard with linked credit card doesnt offer the credit card protection?
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WillP79 [5] Will [6]
August 22
Absolutely Tom - air miles and protection. Simple as that. Some people think these are insignificant, and maybe they are if youre not disciplined enough to put every last penny on credit, but if you do…Ive had about fifteen long haul flights in the last two years purely from my credit card (I
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S75 does cover foreign transaction and you are correct that you still get the miles. I appreciate those are supercard’s terms but you will find that the underlying credit card company in the event of a dispute will say that their liability under 75 is to supercard who have delivered their contract and have no liability to the transaction that supercard made. This is the same as if you used PayPal with a credit card (PayPal have their own protection scheme unlike Supercard).
So yes, by all means spend away on your supercard and get the miles but just in case anyone else is reading this do consider charging directly to your credit card for a large purchase such as a holiday to get the S75 protection - we’ve seen recently with the collapse of lowcostholidays how important that protection can be.
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Good question! I dont at the moment, but Im interested to see where it goes, and its good to think we can influence that. Itll be interesting to use as a current account (for wages and bills) once its licenced, because Im hoping over time it will have a richer mobile app than my existing bank (which, to be fair, is pretty good) but like my existing current account, I wouldnt use it for payments, unless it starting competing with the benefits of credit cards.
ON 09:00, 23RD AUG 2016, IANSILVERSIDES WROTE:
iansilversides [1] Mondo Alpha
August 23
just out of interest if
“I have only used Mondo to run down the initial ?100, and an extra tenner just to register it with my internet banking”
why do you have , want or need a Mondo card ?
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WillP79 [3] Will [4]
August 22
Absolutely Tom - air miles and protection. Simple as that. Some people think these are insignificant, and maybe they are if youre not disciplined enough to put every last penny on credit, but if you do…Ive had about fifteen long haul flights in the last two years purely from my credit card (I
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why do you have , want or need a Mondo card ?
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WillP79 [3] Will [4]
August 22
Absolutely Tom - air miles and protection. Simple as that. Some people think these are insignificant, and maybe they are if youre not disciplined enough to put every last penny on credit, but if you do…Ive had about fifteen long haul flights in the last two years purely from my credit card (I
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I Think that even though credit cards are useful, But I think your current account should be even more useful and give you extra value because of the fact that you use this every day its an integral part of your life.
Air miles - Are a fantastic reward and it doesn’t have to be crazy miles per spend but something reasonable 1 mile to £1, even if :mondo: wanted to monitise this through partner channels i.e every time we shop with asos for instance we get 2 airmiles points. That would be cool with that and of course :mondo: would get a kick back from the sale (A great way to make money…I got partnerships ideas for days). for those of us with family abroad that would be fantastic a reason to only use :mondo:
Section 75 CC - even though this is a toughie it would be interesting if :mondo: could create their own version of this with selected partners or have a deal with our transaction processor if there was an additional charge that we would have to shell out for.
Also interesting there is a card called the Cash Plus in which the company gives you credit of £80 (I think) that you pay back over the year that you cant spend which is technically classed as credit and impacts your credit file could this be used to then protect purchases made on :mondo: card??
I would be happy to talk more 
…COUGH! HIRE ME!!!
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So far, all the arguments for having a credit card can be replied to with:
This can/should be offered by a current account
Banks make money off of our current account balances. They can offer us rewards and/or interest. The law should be corrected to apply as much protection to debit card transactions as credit cards (I’ve never fully understood why this even is the case).
This, to me, is the whole point of Mondo - recreating banking. If you want the status quo, which incredibly I see some here do, then continue on with the credit card and nothing will change. Meanwhile the rest of us being essentially screwed by a lot of the system, will try to think differently.
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The law will never be changed for debit products to be covered under S75, even more so now that interchange rates have been capped under EU law. Whilst credit cards can still make a decent amount of profit charging retailers to accept credit cards, there is very minimal charges for debit cards.
Imagine a transaction for £2000. A credit card company may take 2-3% of this transactions in fees, where as for a debit card may get 5p.
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Indeed. It is simply not possible to replicate all the benefits of credit cards with a current account/debit cards.
This is because the revenue made by the card network/issuer for credit transactions is enormous. The merchant pays for that. For debit transactions, they’re now capped at a very low amount. This is good for the merchants, but means that many of the benefits are not possible.
Personally, before I moved to Mondo, every last penny of my spending went on my BA Amex. As a result of that, I too have taken many flights for free.
I have also invoked chargebacks a few times. Amex, as expected, have provided superb customer service for all of these cases. Amex will almost always side with their card holder in the event of a dispute.
Neither of these two things can be achieved without the additional processing fees applied to credit card & Amex payments.
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but as i said and @coffeemadman isnt the whole point of :mondo: to go against the status quo. If :mondo: can create a bank from new tech I’m sure working out a way for its users to be protected should be less problematic. I’m sure we can come up with something…Are there any finance lawyers in the community? 
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Kal - whilst it would be possible for Mondo to create their own protection scheme like Paypal have done, it would only ever be a mechanism where Mondo would decide on supporting the case of the consumer or the merchant. They would never put themselves in the position that S75 forces which is that the credit provider is jointly liable for the contract. What this means is that if there is problem with contract, you as the consumer could take the credit card company to court rather than the merchant. This is particulary important for companies that go bust or who have overseas operations where taking to court outside the UK would be very difficult and expensive.
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The model that credit cards “with benefits” operate is that their interest rates are often higher than usual so that those servicing debt fund the giveaways to those who pay in full. Can’t see how that would work with a current account without an annual or monthly fee (which would at partially limit the point of receiving benefits in the first place).
I tried using an Amex for everything for a few months, but lots of places don’t take it and for the relatively modest cashback benefits it gave back it didn’t seem worthwhile. Personally, the real time analysis on my spend through Mondo is worth more than the £15 a month I received from Amex.
I’m sure Mondo will launch a regular credit card in time. Like savings and overdrafts, it’s the kind of product someone would expect from a full service bank.
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Hey James, I see that :mondo: protection scheme sounds great 
I do understand your point in terms of who would be liable and the location problems if the merchant was abroad.
So what are your thoughts on this point I raised if :mondo: was to do something similar as Cash plus as they seem to offer Purchase protection just like a credit card / AMEX
Happy to be corrected, but this sounds like it is the Mastercard chargeback scheme which our Mondo debit cards also benefit from?
Absolutely love the design thinking at play here. Little wonder this company is one to watch out for!
Does Africa being a continent prevent it from having wild bits? Bits where visiting people may have credit cards but vendors don’t have readers because they don’t have bank accounts or reliable connections to networks to process those transactions… Heck, in the UK we have plenty of places you struggle to get a internet connection and some places that cards are not welcome.
Credit can be a good thing. You have an idea, you can’t pay for it now and it would ultimately profit society (or your investors). Should that idea be denied an entry into existence? In the past many inventors have died in poverty through being unable to properly realise their dreams. (Just google “penniless inventors”).
Using credit to buy things that make your life more pleasant diminishes their worth. If you have to work for 3 months to save the money to buy a bigger TV, you probably find yourself thinking “that’s 3 months o work, I should spend it on something that has more value to me”.
The “first world” have allowed credit to provide them with too many nice things of no real value and in a spiral of debt are unable to pay for them. That’s the problem.
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I pay my credit card balance off every month, so it’s not the long-term credit for me. It’s also not the points (I don’t have a card that collects points/miles). But the other two issues are important:
-
Protection is absolutely vital, and the main reason I use a credit card. Both the CCA and the fact that if you have a dispute with a merchant, the credit card company is very good at protecting my interests and demanding proof from the merchant. This hasn’t happened to me for years, but I would never use a debit card to make online or phone purchases. Even if the bank would also protect me in a dispute and re-credit my account, the money will have been debited from my account first. With a credit card, I never have money debited from a faulty transaction, and even if it takes time to resolve the issue, the credit card company will put a hold on the transaction so I don’t have to pay it.
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I do find the short-term interest-free borrowing (cashflow help) useful as well, particularly as I keep money in my savings account. For a big item that will be paid for from savings, it’s convenient to just put it on my credit card and settle the accounts once per month. There are some household shared bills where this is also useful: put purchases on my card and then settle the amounts a few times a month instead of every 2-3 days.
Both of the above are also why I use a credit card when a temporary deposit is needed (e.g. for car hire). It doesn’t affect my cashflow, and if the merchant doesn’t release the deposit when they should, I’m protected.
Overall, I could probably manage without (2), though it is extremely convenient. I couldn’t manage without (1) and wouldn’t give up my credit card without a similar level of protection. If Mondo can offer a product with that protection and the ability to shield my money from the merchants, I’d be happy to ditch my credit card.
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@tom sorry, I’m quite late to the party…
I actually just asked a question about this elsewhere on the forum and was directed here 
I’d like to clarify my thoughts on the subject of credit cards (if it’s not too late to provide some comment on the subject)…
For me, the primary reason to use a credit card is for the protection I get when a purchase goes bad (seller doesn’t provide the goods or someone uses my card without my knowledge).
With the latter I appreciate that the immediate purchase notifications and ability to freeze the card can prevent further fraud, but it doesn’t mean I get my money back.
So, for example, if I were to start paying my wages into the Monzo card and someone gets the card without my knowledge and then ends up spending everything in a single hit, I’m screwed.
Equally, if I buy something from Amazon and it’s via their third party sellers, and they don’t end up sending me the goods I’ve paid for. I have no real recourse in recovering that money.
I always pay back the borrowed credit on time and so I never incur interest charges. So other than the protection mentioned (and possibly loyalty points - which I’ve never really utilised up until this point any way), a credit card is solely for ensuring I can get my money back if I need to.
It would be good to know if Monzo has plans (even if not in the immediate future) to tackle these concerns. Otherwise I can’t help but think Monzo will have a tough time competing with traditional Banks as people like myself will not be able to fully justify using the card as much as we’d like to.
Thanks for any feedback you can give me
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No, we don’t have plans to offer a credit card in the near future, I’m afraid.
On the fraud question, you are covered under the Payment Services Regulations if money is taken from your account without your permission. As long as you’ve not been grossly negligent (eg given your PIN and card away voluntarily), the bank will refund you, even with a debit card. You can read more here.
I can understand why Consumer Credit guarantees are important to you, but ultimately someone has to bear the cost of those guarantees - that’s often the issuing bank. It’s then very hard for the bank to make the economics stack up without sticking a load of fees and charges on the account, which is something we’re trying to avoid.
Ultimately, we can’t be everything to everyone, especially in the early days. Monzo is focussed on providing a simple, transparent current account which puts you in control of your money.
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