I haven’t yet created my Monzo account but am considering it. Is it possible to top-up my Monzo account using an existing credit (not debit) card from another bank? If yes, do you charge a fee for that?
I’ve used things like TransferWise before, and they allow to top-up using a bank transfer for free, but they charge 0.4% if a credit (not debit) card is used.
Also, what are the transaction limits for topping-up by credit card? TransferWise has a £2000 limit per transaction but allow many such transactions in a row. DiPocket has a £500 limit per day, which isn’t ideal.
That’s interesting. So if I have a credit card with a £5k limit, I can transfer £2.5k into my Monzo account, and when payment is due all I have to do is transfer a further £2.5k into my Monzo account and pay off the original £2.5k due on my CC, without incurring any fees? Handy for having free long-term cash credit. Who needs an overdraft?
I can see how that can happen if the CC company sees the transfer to DiPocket as a purchase payment rather than a cash advance. Not sure that the CC companies will continue to allow this transaction as a purchase once they realise it’s not.
People do use Revolut (and other prepaid providers) to avoid Cash Advance fees, however some people have reported that banks and credit card providers are getting more savvy to this workaround and some do now class it as a cash advance. American Express purposely stopped working with Curve because of this too. Generally, you need to test whether your credit card classes it as a cash advance or not.
@alexr I’m guessing Monzo don’t do it because they aim for the Current Account to replace the Prepaid card so do not need to provide this service. You can’t do this with a credit card and generic bank accounts (unless you ask your credit card provider to with associated fees).