This is something that really should have been nailed before releasing cards to US customers. Not a great customer experience 
2 Likes
In the case of lost or stolen we’d always make sure you get a new card number, don’t worry. And we don’t currently have plans to issue cards with the same card number.
The cases where this is useful is when your card is nearing its expiry date or has been damaged and you just need a new one 
1 Like
If they follow the UK launch model then it will be prepaid until they’re ready to launch a debit card on their own payment infrastructure.
It’s not a big deal.
Rough estimate is that this ‘mistake’ is exposed to 0.00003% of the potential US market, and so far just one or two people have spotted it.
I’m not sure if you went to the current accounts roll out events in London, but ultra–early adopters are warned the app may contain errors, are encourage to feedback and, most likely want to in order to be part of the first few customers.
You may not find it a great customer experience, but others may find it interesting to see how other countries (the UK) operate.
13 Likes
Currently, Monzo is using prepaid cards (via Gaileo is my understanding) that are funded by a Sutton Bank account (as confirmed by my friends and the Sutton terms that US customers accepted at signup). I assume the reason for the prepaid card instead of a real debit card is partially due to the last second issues with contactless cards. Will we be issued a non-prepaid/real debit card once the card replacement flow is completed or will Monzo continue using prepaid cards for the foreseeable future? The reason it matters is because, being a prepaid card, there are certain classes of transaction that will not be possible such as renting a car, a hotel room, paying utility bills etc. I assume thats why Google was declining it when I was trying to pay for my Fi account earlier but could easily be wrong.
It’s worth digging into a few things here. Apologies if you already know a lot of this, but others reading might find it interesting too 
Galileo is our processor, they provide us with a connection to the Mastercard, Maestro and Visa Interlink networks which our cards use to make payments. They also instruct Sutton when to move money and how much in relation to these payments. Galileo also generate card details for us when we request them (e.g. the number after the BIN on the long card number, the expiry date etc.), and then pass these card details to our card manufacturers to make cards.
Sutton is our issuer, they hold the money in the accounts and move money between accounts when needed (either to different internal Sutton accounts, to Mastercard/Visa etc.) They are also the regulated entity in this case. Sutton own the BIN which our cards are issued under from Mastercard. This is the 6 digit Bank Identification Number at the start of your card number.
Monzo in this situation is the program manager - we interact with customers and manage the ent-to-end customer experience. Because we have direct relationships with all of these parties (Sutton, Galileo, card manufacturers, mastercard etc.) we are able to make sure the customer experience is how we want it to be. Some program managers take a very hands off approach and don’t have these direct relationships, however we do and very deliberately want the control to make sure you’re getting the monzo experience you deserve.
The cards we’re providing are debit cards, underpinned by a General Purpose Reloadable account at Sutton. This account has it’s own routing number and account number. It’s connected to the ACH network and is able to receive direct deposits. In the future this account will be connected to BillPay so you can pay your utility bills from the account.
That was a very long winded way of saying that as we build out our features you shouldn’t notice a difference between what our accounts offer and what you’re referring to here as a ‘real debit card’, and if you do and have examples please get in touch as we’d like to make sure this isn’t the case. The contactless part of this it unrelated, this is more just how the card interacts with the payment terminal in shops.
We’ve tried booking a hotel with the cards and they work fine. The only thing I could think of which might cause confusion at this early stage is if the hotel or card rental place didn’t like the fact the card doesn’t have your name on.
Hope that helps!
TL;DR Our cards should work in the same way as other bank cards and if they don’t let us know.
11 Likes
It’s being rolled out slowly to a small number of customers - possibly considered a beta launch. As such, I agree with you.
My point is that after researching the US market and working towards this soft launch, I’d have thought the process for changing a PIN would have been nailed before dishing out any cards.
It seems the current Monzo should behave as normal, however what I think @robbiet480 may be referring to is how debit transactions behave differently to credit such as at my hotel:
Though I know prepaid credit cards (Visa/Amex etc.) have restrictions on what they can be spent on.
I am not sure if the same apply to the prepaid debit cards which can be found at the pharmacy such as greendot @Anthony might know more.
Given that the ‘real’ card is also a debit card there wouldn’t be any difference between them and the current offering. Hotels are just things not to use a debit card for, full stop (or ‘period’ as this is the US board?).
Have I missed a US banking subtlety?
1 Like
Forgive my ignorance, but what is ‘credit’ about a prepaid credit card? Surely if you’ve paid upfront, there’s no credit involved?
There are two payment systems in the US.
The credit card networks such as Visa, MasterCard, Amex, Visa, Discover, Diners Club etc. and the Interbank Networks which run all debit transactions such as Pulse, Star, Interlink, Mastero, Cirrus, Moneylink etc.
If you look at your debit card it may have a Visa/MasterCard logo on the front which lets you use your card over the credit card networks. In these situations you would not need to enter your PIN. You would use chip/swipe and signature. Think situations without a PIN pad such as at a drive through, or sit-down restaurant where the card is run in the rear. Unlike a PIN transaction which posts immediately, a “credit” transaction can take a few days.
The main difference for merchants is the frees. Debit Interchange fees were capped by the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2011 at 21¢ + .05% of the transaction.
This is why the points you get with your debit card are higher when you run it as credit.
1 Like
Thanks I thought it would have something to do with the network the transaction ran on.
In the UK we have Visa, Mastercard and Amex for credit cards, and mostly Visa Debit and Mastercard Debit for, unsurprisingly, debit cards.
Maestro is rare, but issued by a small number of banks, and Cirrus is for ATM use.
99% of cards are contactless (no PIN needed) and default back to chip and PIN for larger value transactions. Signatures are being phased out.
No idea what this means, but in the UK I wouldn’t let my card out of my hand, ever.
You would have a very hard time in the US then. We do not have wireless terminals. Handing your card over is standard. Even in many shops the card is run by the merchant behind the desk or swiped/inserted into
their cash register. Don’t forget the merchant needs to physically hold your card no matter what to compare your signature on the back of your card to the one on your receipt / the screen to verify your identity.
Contactless was introduced in 2005 but was phased out in 2011 as no one used it. It was slower than swiping and still required signatures.
Apple Pay and the 2015 liability shift has resulted in more chip terminals which allow tap-to-pay being installed. Card merchants are issuing tap-to-pay cards again.
1 Like
So no PIN entry in place of signature then?
I haven’t signed anything for a financial transaction in years.
I’ve just come back from the States and they do have contactless, albeit it isn’t as popular as over here. Occasionally you’ll also need to enter a PIN or even sign something. It depends where you go.
1 Like
Debit Card Tx over Interbank = PIN
Credit / Debit Tx over credit = signature or nothing.