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    • MSE Karl
    • By MSE Karl 13th Sep 17, 5:43 PM
    • 29Posts
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    MSE Karl
    0 WOW
    MSE News: Monzo to curb free overseas ATM withdrawals
    • #1
    • 13th Sep 17, 5:43 PM
    0 WOW
    MSE News: Monzo to curb free overseas ATM withdrawals 13th Sep 17 at 5:43 PM
    App-based Monzo Bank has announced it is to scrap or severely limit free overseas ATM withdrawals on its popular prepaid card, and has launched an online poll asking users to vote on a number of different charging options...
    Read the full story:
    'Monzo to curb free overseas ATM withdrawals'

    Click reply below to discuss. If you haven’t already, join the forum to reply.
    Last edited by MSE Luke; 14-09-2017 at 2:27 PM.
Page 1
    • Doc N
    • By Doc N 13th Sep 17, 7:35 PM
    • 6,389 Posts
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    Doc N
    • #2
    • 13th Sep 17, 7:35 PM
    • #2
    • 13th Sep 17, 7:35 PM
    The words 'shooting' 'self' and 'foot' spring readily to mind. If the free ATM withdrawals overseas are withdrawn, is there any other reason to have an account with them?

    I'm guessing not.
    • Lowermax
    • By Lowermax 13th Sep 17, 8:43 PM
    • 22 Posts
    • 1 Thanks
    Lowermax
    • #3
    • 13th Sep 17, 8:43 PM
    • #3
    • 13th Sep 17, 8:43 PM
    Monzo is far more than a foreign spending card (like revolut and competitors), the fact it notifies you after spending is a big plus and if the "traditional" bank systems weren't so archaic they would all be doing this now.

    I've been using my card for the past 18 months for everyday spending and it enables me to keep a track of exactly what i spend.

    I've just been accepted for one of their current accounts and will be moving all direct debits/standing orders and finally my wage to it.

    Free overseas withdrawals was always going to end as it isn't sustainable for them but the rates they are proposing are still reasonable (far better than the big UK banks).

    I can't wait to see what Monzo do over the next few years, especially considering what they have done in such a short period of time!
    • bagand96
    • By bagand96 13th Sep 17, 10:41 PM
    • 2,776 Posts
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    bagand96
    • #4
    • 13th Sep 17, 10:41 PM
    • #4
    • 13th Sep 17, 10:41 PM
    The words 'shooting' 'self' and 'foot' spring readily to mind. If the free ATM withdrawals overseas are withdrawn, is there any other reason to have an account with them?

    I'm guessing not.
    The thing is... Monzo are not, and don't want to be, just a foreign spending card. They are launching current accounts, they want to be a fully featured bank. And they can make money off people doing day to day banking with them. Offeeing the fee free overseas spending was a great way to put their brand out there and get people to sign up.

    The problem comes when the masses sign up just to take advantage of the loss leader offer (in this case fee free overseas spending) but don't actually want to use your product full time. There's no money to be made... in fact there's probably lots to be lost.

    Next of I guess is Starling. I signed up for the same reason. I actually really like their product... and although I'm not yet convinced to use them for my sole banking needs, I do use their current account as just that, a current account with regular transactions. My fear is everyone jumps on bird for the fee free overseas spending... but doesn't use it otherwise... and they pull it.

    But that's the downside to the great resource that is MSE. Tesco Bank current accounts being a recent case in point....
    • RikM
    • By RikM 13th Sep 17, 11:02 PM
    • 566 Posts
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    RikM
    • #5
    • 13th Sep 17, 11:02 PM
    • #5
    • 13th Sep 17, 11:02 PM
    The words 'shooting' 'self' and 'foot' spring readily to mind. If the free ATM withdrawals overseas are withdrawn, is there any other reason to have an account with them?

    I'm guessing not.
    Originally posted by Doc N
    er, no fees on card use? Giving the mastercard exchange rate with no additions on foreign transactions...?
    Basically, the card is not actually intended for cash withdrawals, that's obvious from the conditions which place limits on ATM use (in general).
    This is just an attempt to stop bleeding cash to foreign fees - especially from people who are taking the card to only use it for holiday cash withdrawals.

    On that basis, hell yes, pass on the fees. It's still cheaper than what is levied on most cards, and using as a payment card (and not a cash card) is still going to be fee free...
    • eDicky
    • By eDicky 14th Sep 17, 3:13 AM
    • 2,918 Posts
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    eDicky
    • #6
    • 14th Sep 17, 3:13 AM
    • #6
    • 14th Sep 17, 3:13 AM
    I've noticed what appears to be a compulsion to withdraw foreign cash for spending by users and potential users of these 'travel' cards, instead of just using the cards to pay whenever possible.

    Withdrawing cash without fees is an expense for the card issuer, whereas using the card for spending brings them revenue. So if they find that a high volume of ATM withdrawals is causing them more loss than they can safely absorb, of course the introduction of fees becomes necessary. Revolut already had to do this in order to survive and obtain further investment.

    I signed up to Monzo prepaid (then Mondo) in their early days before any mention was made of its use for travel. Not finding information anywhere about their overseas fees I asked via the in-app chat and was told that there were none at all, with the straight MasterCard exchange rate. I suggested this might be a popular aspect of their card and they should show this info on their website. They did so, and later Monzo was listed among the prepaid travel cards on MSE. I'm not trying to claim any credit, but point out that apparently they had initially hardly considered overseas use of the card and its effects on revenue. No doubt it brought them lots of customers, but at some point they have to try and balance the books.

    Even with an ATM fee for foreign withdrawals in excess of £200/month (which looks the most likely), Monzo will still be a useful card for travel. Personally I have no sympathy for those who only want to withdraw cash without fees instead of paying by card whenever possible. If Starling Bank and Loot are used (abused?) in this way, the same thing will happen.
    • Neil49
    • By Neil49 14th Sep 17, 10:03 AM
    • 1,211 Posts
    • 594 Thanks
    Neil49
    • #7
    • 14th Sep 17, 10:03 AM
    • #7
    • 14th Sep 17, 10:03 AM
    It is unfortunate that MSE have heavily promoted the Monzo card as the best card for foreign travel. Nearly every day or so I have seen posts where people have been applying for one a few days before travelling simply to withdraw cash from atm's abroad.

    Monzo have always had atm restrictions in the Terms and Conditions (£200 per day, £1,000 per month etc) for newer applicants but I don't know what controls they had in place to enforce these limits.

    Either way, there are a significant number of users who have just used it for that one purpose and it has become an unsustainable major overhead for a small startup like Monzo. I've had my card for 9 months now and in many travels abroad I've only used it once in an atm (when the Dubai metro card system went down and I had to get some cash).

    Those complaining about this change should consider the fact that you shouldn't rely on one card when travelling abroad. I also used a Clarity card (for atm use) and a Caxton card.

    I use my Monzo card every day in the UK as the app feature of instant notications means that I can spot any unauthorised use or cloning in an instant. It also means that I don't need to carry much cash on me.

    I just hope that other small startup banks offering similar benefits don't suffer in a similar way. Metro bank has had to change its stance but the fact that it is generally based around London and is branch based hs limited the number of account openings as you have to go into a branch to open one.

    I shall be sticking with Monzo because for me it has benefits here in the UK that the major banks have yet to provide.
    • A_T
    • By A_T 14th Sep 17, 1:01 PM
    • 222 Posts
    • 111 Thanks
    A_T
    • #8
    • 14th Sep 17, 1:01 PM
    • #8
    • 14th Sep 17, 1:01 PM
    Looks like Starling will be the one to use abroad - at least until they introduce fees ;-)

    This was inevitable. Free foreign usage attracts customers but is expensive for the issuer.

    I only got a Monzo card for foreign use. Can't see the point of it otherwise and I doubt I'll use it once the fees are introduced.
    • Neil49
    • By Neil49 14th Sep 17, 3:09 PM
    • 1,211 Posts
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    Neil49
    • #9
    • 14th Sep 17, 3:09 PM
    • #9
    • 14th Sep 17, 3:09 PM
    If a large number of users switch to Starling for the very same reasons then Starling will find themselves in the same situation.

    The problem is that we all want something for nothing and life just isn't like that. You can't expect Monzo or Starling to cover the costs of atm usage abroad just because we don't like to pay for it ourselves.
    • A_T
    • By A_T 14th Sep 17, 9:57 PM
    • 222 Posts
    • 111 Thanks
    A_T
    If a large number of users switch to Starling for the very same reasons then Starling will find themselves in the same situation.

    The problem is that we all want something for nothing and life just isn't like that. You can't expect Monzo or Starling to cover the costs of atm usage abroad just because we don't like to pay for it ourselves.
    Originally posted by Neil49
    Then why offer it at all in the first place? Because they want to attract customers. So when it's taken away customers will leave and noone should be in any doubt as to why.

    Monzo is doomed now.
    • mikeeboy
    • By mikeeboy 20th Oct 17, 4:51 PM
    • 135 Posts
    • 67 Thanks
    mikeeboy
    Big shame.

    Not as attractive now for me.

    Just checked out Starling, seems to be like for like
    Last edited by mikeeboy; 20-10-2017 at 5:03 PM.
    • M4RKM
    • By M4RKM 21st Oct 17, 10:03 AM
    • 5,065 Posts
    • 3,673 Thanks
    M4RKM
    Actually, Starling is a current account and not a pre-paid card. You earn credit interest, can use the switch service, have an overdraft. You get a sort code and acct number from day 1.

    I use it in the UK as my bank account for my day to day expenses.

    As for Monzo, you still get £200 free withdrawal per month, and every card payment transaction is free as well. I just don't get the obsession of using cash everywhere!

    M
    Last edited by M4RKM; 21-10-2017 at 10:04 AM. Reason: cash.
    • heatherw_01
    • By heatherw_01 21st Oct 17, 10:12 AM
    • 4,925 Posts
    • 3,571 Thanks
    heatherw_01
    Actually, Starling is a current account and not a pre-paid card. You earn credit interest, can use the switch service, have an overdraft. You get a sort code and acct number from day 1.

    I use it in the UK as my bank account for my day to day expenses.

    As for Monzo, you still get £200 free withdrawal per month, and every card payment transaction is free as well. I just don't get the obsession of using cash everywhere!

    M
    Originally posted by M4RKM
    Monzo will be a current account soon too. They will be getting rid of prepaid cards.

    I use Monzo and I love it, I don't make ATM withdrawals so this doesn't bother me tbh. Still get one withdrawal if I need it which I am happy about.
    I'm the Board Guide on Quick Grabbit, Freebies, Overseas Holidays & Travel Planning and the UK Holidays, Days Out & Entertainments boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • Maximum Saving
    • By Maximum Saving 22nd Oct 17, 9:35 PM
    • 182 Posts
    • 333 Thanks
    Maximum Saving
    It is awful how banking keeps changing. I wish to go abroad and get no fees with my spending. I used to have a current account with Norwich and Peterborough Bank which had no fees. Sadly it closed all current accounts in August 2017 Monzo Bank is silly for changing its deal for overseas spending.
    • PeacefulWaters
    • By PeacefulWaters 22nd Oct 17, 10:09 PM
    • 7,170 Posts
    • 8,833 Thanks
    PeacefulWaters
    It is awful how banking keeps changing. I wish to go abroad and get no fees with my spending. I used to have a current account with Norwich and Peterborough Bank which had no fees. Sadly it closed all current accounts in August 2017 Monzo Bank is silly for changing its deal for overseas spending.
    Originally posted by Maximum Saving
    Silly?

    They'll be bust before the end of next year if they don't change it.
    • Doc N
    • By Doc N 22nd Oct 17, 10:39 PM
    • 6,389 Posts
    • 19,292 Thanks
    Doc N
    Silly?

    They'll be bust before the end of next year if they don't change it.
    Originally posted by PeacefulWaters
    And once they have changed it they'll lose most of their customers. Is there really any advantage over, say, First Direct or Santander 123?
    • heatherw_01
    • By heatherw_01 23rd Oct 17, 10:21 AM
    • 4,925 Posts
    • 3,571 Thanks
    heatherw_01
    It is awful how banking keeps changing. I wish to go abroad and get no fees with my spending. I used to have a current account with Norwich and Peterborough Bank which had no fees. Sadly it closed all current accounts in August 2017 Monzo Bank is silly for changing its deal for overseas spending.
    Originally posted by Maximum Saving
    There is still no fees for using the card abroad only ATM fees.
    I'm the Board Guide on Quick Grabbit, Freebies, Overseas Holidays & Travel Planning and the UK Holidays, Days Out & Entertainments boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • PeacefulWaters
    • By PeacefulWaters 23rd Oct 17, 11:25 AM
    • 7,170 Posts
    • 8,833 Thanks
    PeacefulWaters
    And once they have changed it they'll lose most of their customers. Is there really any advantage over, say, First Direct or Santander 123?
    Originally posted by Doc N
    Well if you want to save nearly 3% on every overseas purchase, yes.
    • JuicyJesus
    • By JuicyJesus 23rd Oct 17, 11:35 AM
    • 3,041 Posts
    • 3,156 Thanks
    JuicyJesus
    And once they have changed it they'll lose most of their customers. Is there really any advantage over, say, First Direct or Santander 123?
    Originally posted by Doc N
    Customers who only use their accounts situationally and for things you charge no money for, and otherwise use other companies' products, are not good customers a bank wants to keep. N&P stopped their current accounts because by and large that's all they were getting - customers who did the bare minimum to qualify for free overseas spending.

    Monzo's USP is that it's a brand new app-based bank based on a brand new platform with lots of new technologies, similar to Starling. That's not something that First Direct has or that Santander has.

    Frankly, people who rinse good deals for all they're worth while doing the barest minimum to qualify for them have only themselves to blame if those good deals turn out to be wildly unprofitable and thus go away.
    urs sinserly,
    ~~joosy jeezus~~
    • zagfles
    • By zagfles 23rd Oct 17, 12:02 PM
    • 12,480 Posts
    • 10,469 Thanks
    zagfles
    Customers who only use their accounts situationally and for things you charge no money for, and otherwise use other companies' products, are not good customers a bank wants to keep. N&P stopped their current accounts because by and large that's all they were getting - customers who did the bare minimum to qualify for free overseas spending.

    Monzo's USP is that it's a brand new app-based bank based on a brand new platform with lots of new technologies, similar to Starling. That's not something that First Direct has or that Santander has.

    Frankly, people who rinse good deals for all they're worth while doing the barest minimum to qualify for them have only themselves to blame if those good deals turn out to be wildly unprofitable and thus go away.
    Originally posted by JuicyJesus
    The whole purpose of MSE is to do exactly that! If a company has a business model which includes loss leaders then that's their choice of business model, and they have no-one to blame but themselves if people "rinse" them.

    There'll be someone else along offering the same in a while. I've recently got the new Barclaycard travel card which I'm only using for ATM withdrawals. Plenty of other options for fee-free spending, and the Clarity as a backup for cash.
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