I have been using the new end-to-end integration with Wise since last summer as I make frequent international transfers, but a few days ago I became aware of the fees that Monzo add to Wise transactions. As an example for a transfer last Tues:
Via Monzo: 2,500 GBP → 3,255.97 with 16.52 GBP transfer fee
Via Wise: 2,500 GBP → 3,266.85 with 9.07 GBP transfer fee
This means that Monzo is charging 7.45 GBP for the transfer even though they are incurring no costs whatsoever. Transferring directly through the Wise app even has an ‘authorise payment from your bank option’ so it’s as easy as using the Monzo app and you can avoid this charge.
My main problem here is that this seems like a sneaky charge. It is not properly disclosed at the time of the transfer with a vague ‘They share some of the fee with us to cover the cost of making the transfer’ when actually this is incorrect - they charge extra fees and presumably pass on this extra to Monzo. Monzo also offers cashback for Plus and Premium members which funnily enough comes to about the extra charge, meaning that this ‘benefit’ is actually Monzo not adding the charge that they shouldn’t be adding in the first place.
Overall this whole thing leaves a bad taste in my mouth. I would completely expect this from one of the bigger banks, but for Monzo this is the first time I’ve felt as though something underhand is taking place, or to be more precise, an enjoyment of ambiguity, which has resulted in me unknowingly paying extra over the last 9 months.