What about credit cards?


#226

Aren’t they capped at 0.3% ?


(Leon) #227

Who would spend 4k on a credit card? I certainly didn’t when I had a credit card.


#228

Over an entire year?

Food shopping alone would do that for my family (maybe we eat too much :joy:)


#229

The problem is that many of us have more than one credit card. I guess eating even more youd be the only solution then! :joy:


#230

It depends how you use your credit cards.

I’ve never paid a penny of interest - I purely pay it off in full each month.

There seems little point in having multiple credit cards if you do this (unless I’m missing something).

To be fair, I do have an AMEX for the majority of spend, and a Tesco Credit card for anywhere that doesn’t take AMEX (and it’s a larger purchase).


(Ben ) #231

I at one point got myself into a bit of a churning wormhole trying to maximise the credit cards cashback/benefits…

Had my AMEX for as many purchases as I could put on it - cash back in year one was great - but largely as all my work expenses went on it.

Then used a TSB (debit) for my tube travel - contactless transactions up to £100 would give cashback. I spend about £100 on travel a month so that worked.

Then I had a back up credit card for when my AMEX failed - can’t remember which one it was but only real benefit was a low interest, but was irrelevant because I paid it off every month.

(then my main current account card, plus Monzo)

The problem was for me having all these cards meant I just got lost in where I was with my budget - due to all the accounts to keep an eye on, and invariably spent more than I would benefit, or got myself stuck on the Credit Card float.

I decided when I went FullMonzo that the benefit for me was the simplicity - so I rationalised the lot. I keep 3 cards in my wallet now (Monzo, Amex, Other Credit Card); and only use a credit card for purchases where I would value the credit card protection.

If there was a credit card that worked functionally similar to Monzo I’d be up for using it - or if Monzo had a credit offering under the same app I would be very happy.


#232

You fell into legacy banks’ trap. Nasty, rusty trap. Not only you, by the way :sob:


#233

:point_up:


(#savetheseabass) #234

Would credit cards not require a huge amount of money to be set aside for lending? 50,000 users with a £1000 limit is more than pocket change


(Ben ) #235

Yeah I feel for now their focus needs to be getting the current account into profitability / closing off a good number of The Big List before they’d even consider other credit options.

Maybe the Marketplace would be where/when we see some form of credit card based thing in Monzo, but I can’t imagine it would be part of their own offering for a long time.


#236

:sob::sob::sob::sob:


(Ben Talbot) #237

Are we the same person? :joy:


#238

Haha! I don’t know, but feel free to pay my bill when you pay yours :joy:


(Jack) #239

If you’re putting in the long card number in theory Monzo would make a bit of money from this as they’d get a portion of the processing fee charged to Amex?

But if you want to do FPS this is from the Amex website:


(Ben ) #240

30-00-00, now thats a nice sort code…


(Ravi) #241

I’ve stopped using my Amex Platinum since they cut the cashback to 0.5%. The issues with acceptance just aren’t worth it for me and I definitely find it easier to track my spending now I’m down to just one credit card (NatWest Reward Card).


#242

I use AMEX purely for the reward points (transferred to air miles).

I find it better value than the cashback, and for 95% of my spend, there’s no acceptance issues.


(Toby Toller) #243

My understanding was that Monzo make a loss from this, not a profit:

I wonder if it makes a difference. It may be that FPS cost as much as is I pay it off online with my Monzo card.

However if one is cheaper than the other I’d make sure to use that!


(Jack) #244

Lloyds bank head office sort code :slight_smile:


(Jack) #245

I read @joey100’s responce as if faster payments are being discussed. I’m sure Joey can confirm if filling out the card details as if purchasing something online from a merchant would earn Monzo money not? :slight_smile:

Edit: Monzo Staff Weekly Q&A - Annual Report Edition!

My guess is paying online with the long card number on Amex world be classed as merchant spend / point of sale.