A common misconception. Credit card firms are profitable even if customers pay things off in full (and most do).
Like Monzo does with debit cards, they rely on interchange revenue for the majority of their income. They would be perfectly content of everyone paid off their balance every month.
Interchange in the EU is capped. I very much doubt EU-based credit card companies would survive on interchange alone.
As @gt94sss2 says, they still would as they charge higher interchange fees etc. Theyâre not the awful predatory monsters credit card opponents like to present them as
And it doesnât matter. If youâre scammed youâre covered with both. S75 offers so much more protection because youâre using credit.
Turning into a credit card chat rather than a starling chat guys.
If S75 protection is considered valuable then the existing laws (that apply where S75 doesnât) are inadequate, not that S75 itself is a solution. The solution is to change the existing laws so that S75 is irrelevant because the other laws already cover you regardless of whether credit was used.
True, maybe worth splitting this off to another thread?
I donât view debt per se as bad, or inherently predatory.
Doesnât Barclaycard freedom have 0% FX forever, and 0.25% cashback on any spend?
I believe the free FX is only until 2023, unless it changed since I signed up. There was definitely some small print
The current version of that Barclaycard has no end date on the free FX for new customers.
Barclaycard frequently tweak exactly what that card offers for new signups, to see what works and hit various internal targets
With Starlingâs current offering, what are the main benefits over Monzo, and vice versa?
From what I can see:
Starling:
â˘No foreign free ATM limit
â˘In-app cheque imaging
â˘Pay in at the Post Office
Youâve covered the main advantages.
They have IBANs so you can reliably receive foreign funds, and you can have a EUR account.
They also have the faculty to give a spare card to someone else to do spending on your behalf.
spare card is / was a great idea
I use that card on a regular basis for supermarket shopping, itâs actually helped me reduce my spend as I look and think right youâve only got X left to spend so donât go get loads stuff thatâs actually not needed or no good. Granted I can soon add more cash to it but I find thatâs enough to make me think twice before doing it
This is the big thing starling has that appeals to me over Monzo.
But, the virtual cards in plus have so much expansive potential down the line that they could supersede this. I can totally envision a virtual card linked to a shopping pot, stored on the household dedicated shopperâs mobile walled via Apple Pay/Google Pay so they can use it for my shopping.
Perhaps even further in the future, it could be possible to send someone a link to add your virtual card to their Apple Pay.
And what does Monzo do that Starling canât do?
For me, itâs all about the budgeting and summary in-app.
And as much as I didnât realise I wanted it, salary sorter plus the bills pot makes my monthly budgeting a breeze and Iâve come to really like them as features.
Personally, for me, itâs the app. Iâm not a fan of the Starling App. I have a starling account, but I donât use it other than for storing some money in incase of urgent needs.
Iâve been using Revolut as my main account for the past several months, and am now moving everything back to Monzo to see how I get on with the new plus offering, as there is a lot I like that Iâve gone into over on the Monzo thread.
Iâve never properly given Starling a real test drive because I closed my account shortly after signing up. So to me itâs not so much about what Monzo have that Starling donât have, but rather what Starling does have that I didnât like, which the others donât have. And that is this:
Yeah, that password was a right fiddle
