Transferring to Another Bank

I found out today that Monzo USA doesn’t have the ability to stop a transfer to another bank once it is started. Every bank has this feature and ability. So, please be careful when transferring money through Monzo because you will not able to stop it once the process has started.

Also, the transfer process doesn’t give a warning or disclaimer of the type of transfer it will be. Most banks include a disclaimer that the process may take 2-3 days. Of course, it could be assumed but it should be stated.

I have just been irritated with the entire Monzo Beta program. I was apart of the Simple Bank Beta and they had way more features available in the Beta that were normal parts of US banks.

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A bank to bank transfer is instant - there is no way to reverse it or even “stop” it

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I think this might be a UK-centric comment?

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They don’t have the faster payment scheme in the US, that’s a U.K. payment scheme. Payment schemes in America are completely different (and by all accounts, much worse)

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This sounds like a difference where Monzo UK’s normal way of working doesn’t map exactly, and the app/work processes haven’t been adapted (in the UK a transfer is instant and there is no way to stop it once you’ve sent it).

Have you got in touch with Monzo using the in-app support chat? And have you told them you want to make a formal complaint about this? If you do this, this will give Monzo US encouragement to fix (update the transfer flow) or work around (adding a disclaimer) the issue.

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Definitely not true. I have been able to stop bank to bank transfers with other banks as long as it is done before the money leaves the account. Most bank to bank transfers in the US are not immediate and take 2-3 days.

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Yes I did. I got some vague response about them recording the concern.

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If you just had a chat with them, might be worth saying you’re not convinced by that response, and that you’d like to make a formal complaint.

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I don’t think US financial services have the same complaints regulation we do either. Not sure on Monzo’s internal policies, or what regulations do exist, but I understand the protection to be weaker.

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You’re right

  • For outbound transfers 1 (from a U.S. Bank account to another financial institution), funds are typically available in the external account two to three business days after you initiate the transfer. We don’t charge a fee for outbound transfers."

I find it funny that they even need to talk about fees

Imagine waiting 2-3 days for money when someone said they sent it

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This is why things like Cash App, Apple Pay Cash, Venmo etc exist.

We have it so good in the U.K., but Monzo need to adapt their offering to cater to the US if they hope to succeed there. Else they’ll repeat the blunders N26 made in the U.K. and risk a similar fate.

I might need to go back and amend some of the recommendations I made to friends RE: Monzo, because I know for at least one of them, this capability is important to them!

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Absolutely!

There has been a real effort to update wording and phrasing to American English, as I understand it, with the Monzo app but perhaps less thinking about process differences and what might be expected from an American point of view (comparing, obviously, with other American banks).

The continuing silence from Monzo on a long-term solution for cheques/checks in the US is another concern. I know they said they were looking into it, but they really need to make that a priority in my opinion.

I still think there is space in the market over there for Monzo, N26 and Revolut to succeed; it’s not going to be easy-pickings though and they have to focus very carefully on market expectation and US customer feedback to get it right.

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This is how it used to work in the UK until Faster Payments launched in 2008 (if the accounts concerned were with different banks)

There is a system which can do real time payments in the USA but Monzo are not a member.

The Federal Reserve are also launching their own FedNow system in 2023.

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Yes I remember pre faster payment payments went by BACS/ACH unless you wanted to pay for a TT. So they have a version in USA shame Monzo haven’t implemented it by joining it.