What about credit cards?


(Jack) #268

Monzo isn’t going to apeal to everyone the same way as not all credit cards do, people look for specific things.

I beilive once the marketplace comes along those users may be swayed differently to get the benefits from the savings or from better current account bundles through the marketplace.


#270

I can see the marketplace helping for things like energy prices, mortgages and other direct debit based products.

For anyone who really values the “rewards” of a credit card, I can’t see the marketplace ever being more beneficial.

Everything I’ve read (big possibility that I’ve missed things of course), alludes to the “marketplace” linking you with products that you’d never use a credit card for anyway.

So for the savvy people, linking your current account with these products, and combining your everyday spend on a rewards credit card would still be the best way to go.


(Andy) #271

I would love a Monzo credit card but failing that, integration so that my spending from a 3rd party provided is included in my Monzo summary.


(Katrina) #272

But note that Mastercard gives you a better exchange rate than Visa. Barclaycard is cheaper if you want to withdraw cash and pay it off at the end of the month because they don’t charge interest, but you are better using a debit card such as Monzo, Starling, or Metro Bank (Euro area only) for that.


(Katrina) #273

Amex is my main spending card, they don’t offer bank accounts.
I also have Tandem for places that don’t take Amex, and for foreign purchases. They also don’t offer bank accounts.

I also have Nationwide Select, previously for UK non-Amex purchases, but I don’t use it so much now, and Santander Zero, previously for foreign purchases, I now only use it if they have rewards cashback for a retailer I’m using anyway.


(Ravi) #274

I keep hearing about “the marketplace” and how it will be the answer for many things that Monzo itself plan to not provide.

I’m just wondering if I’m missing something here. Isn’t there already a marketplace? It’s just called the market - where you can go to any number of comparison sites and financial advice sites, see what’s available and take your pick.

What’s special about Monzo’s marketplace? I imagine that the providers will all be vetted and that they’re all best friends and have similar values but beyond that will it actually be anything more than a subset of the actual market?

I get that Monzo have priorities and/or may not want to offer a credit card. But I’m highly doubtful that the marketplace is likely fill the gap that those of us wanting one have. We already have the real market for that. And while I’ve got a few decent credit cards which offer good rewards the whole point of wanting a Monzo alternative is to get their special sauce.


#275

I think the intention is to be able to sign up from your Monzo app without having to visit any other sites. So you like the look of a savings or credit product then you can sign up in app. All interactions with them will also be in the Monzo app. That’s the end goal as far as I understand


(Jack) #276

Not only sign up within the app but not having to re enter any of your information as Monzo already know this. A few taps and it should be done.
The word that comes to mind is seamless.


(Excited about Christmas) #277

For me, it’s not about having debit and credit at the same bank. It’s about having a credit card as good as Monzo.


#278

You want a credit card as good as Monzo? You’ve got wait for Monzo to do it then! I’ll be waiting. :rofl:


(Jamie 🏳️‍🌈) #279

Monzo already have your financial data. So, for example, when switching energy, they’ll know what you currently spend and can recommend a cheaper supplier. When switching credit card, they’ll know if you’re in the market to transfer a balance too.

Remember providing a current account (or a credit card) isn’t really the goal, Monzo just sees the current account as the best tool to enable Monzo to become the financial control centre in your life.

But you’re right, it won’t be a Marketplace which just annually churns people onto the cheapest deals. Tom has warned of that kind of CompareTheMarket race to the bottom already. Those people who switch regularly are generally subsidised by people who don’t switch. So firms will also share some values with Monzo. A bit like Bulb, though what this Marketplace will eventually look like is anyone’s guess.


(Ravi) #280

But that only works to an extent. They may see that I’m paying Ovo £200 a month but they have no idea how big my house is, what tariff I’m on or what my actual energy usage is.

Financial sites may provide a race to the bottom but they’re very effective for getting the best value as a consumer. Do some people get worse deals and end up subsidising others? Of course, but ultimately people have to do what’s best for them.

Monzo may provide a frictionless marketplace, and I’ll definitely be there to have a look, but ultimately getting the best value usually involves putting the work in. I can think of countless services which provide a lazy option in exchange for taking a cut. There’s obviously a market for this but I’m generally not a fan.


(Jamie 🏳️‍🌈) #281

So you tell Monzo. You only have to do that once. Just like any other marketplace. Then once it has helped you switch it’ll know your tariff for next time. And in the days of open banking and smart meters, Monzo may even be able to tell you if you’ve left the heating on when you go on holiday.

Are they effective though? How do you know Ovo hasn’t paid to be plonked at the top of the listings, skewing the results. Currently all the comparison sites do deals with certain companies behind the scenes. At least Monzo is transparent by default so you’ll know why or why not a particular company makes the grade.

Have you ever seen Tom explain Monzo in person? He does a far better job at evangelising his vision than anyone else. In this Q&A he touches on the Marketplace at 26 minutes and again around 48 minutes. He talks about the race to the bottom, and he even talks about wanting to take away the burden of ordinary folk “putting the work in”.


(Ravi) #282

Yeah that makes sense when you say it! It just doesn’t sound any different to other sites in terms of being seamless.

Well if they’re at the top they’re the cheapest and although price isn’t the only factor that I’d consider I’m not really concerned if they’ve paid to be at the top. And I’m probably a minority but I’d use multiple comparisons.

I watched about ten mins (cheers!). He is very good, and I do like thought and consideration that goes into Monzo. But I guess for me at the end of the day it is banking and the bottom line kind of is $$$. LIke the guy who asks the question about Santander cashback. Yes, it might be loss making for Santander but that really isn’t my problem.

I get the wanting to help ordinary folk and that is great. But I guess I don’t fall into that category!

Edit: I guess my mum is one of the ordinary folks and I personally wouldn’t leave it to Monzo to help her. I’d be doing it myself.


(Andrew King) #283

A credit card that is stored in the app for using online purchases that some kind of reward when using


(Thomas Pym) #284

Hi all, I read the first 80ish posts on this thread, then saw the total amount and skipped to the bottom, so sorry if there’s a recent answer to what I’m about to post.

I’ve never had (or needed) a credit card before, but recently some people I know have really benefited from the credit cards guarantee:

Two people bought sofas at the same time from the same company, which took about 2 months to make and deliver. A month in, the company folded. The person who used their debit card lost all their money; the one who used their credit card got it all back.

Last year, I went on a group holiday. I was going to book the flights and have people pay me back, but I was busy that weekend so someone else volunteered to do it. We were unlucky enough to book with Monarch, but he used his credit card, so got it all back. It was fortunate I didn’t end up booking, or the group might have lost a large sum of money.

Especially with the recent House of Fraser debacle, I’m starting to think that this guarantee is essential protection. I’ve been a Monzo user for 18 months, and had my salary paid in for the past few, and I love it - it’s just so much easier and transparent. I’ve watched a few of Tom’s interviews on YouTube, and I really buy into his vision for the future of the current account. As such, I don’t want to switch back away from Monzo. I wondered if there were any others in the same position, and any solutions you’ve come up with? The best one for me seems to be to get a credit card, make any payments of £100+ on that, then immediately transfer from my Monzo current amount to the credit card account. Any thoughts?

Thanks in advance!

Tom (not that one)


( related to Monzo CEO, Investor in Monzo ) #285

“The person who used their debit card lost all their money; the one who used their credit card got it all back.”

not knowing much about section 75 or charge back , would the person paying by debit card not be covered through chargeback because of non delivery of goods and or company in administration ?


(Sean) #286

This is almost exactly what I do but I try to minimise the effort by transferring after the statement is produced. Pay for things on credit card, once statement comes in I send several payments to the CC - one per category of spending. I also have a statement in full DD on the CC for peace of mind in case I forget.


(Dave) #287

I think the answer here is that chargeback tries to get the money back from the company that folded. If that money isn’t there then in theory you have to deal with the administrators and hope you get your money back.

Section 75 is legally binding on the credit card issuer and as such it doesn’t matter if the money is there with the merchant or not.

EDIT: Just looked at this again and it seems chargeback tries to get back the money from the merchant’s bank, not the merchant. I wonder if no money being in their account is grounds to refuse a chargeback? Or maybe the bank would make a risk-based decision and then have to try to recover anything they agree to refund through the administration process?


( related to Monzo CEO, Investor in Monzo ) #289

Yes I read that also from ML website -

I presume there are several steps to go through with chargeback as opposed to section 75 - finally ending up with the financial ombudsman against the defaulters bank ( as opposed to the defaulter :slight_smile: ) although more onerous that section 75 the result should be the same ???