Monzo is to start charging customers for withdrawing cash from ATM’s while on holiday
The bank is now asking customers to help deciding how much they should charge
MONZO customers may seen have to pay to withdraw cash from ATMs while on holiday after the bank concluded it is costing too much.
The digital-first bank said the cost of providing free overseas withdrawals jumped from just over £6 per active user in June last year to nearly £16 this August.
This is because a small number of customers signed up to Monzo specifically to use the card abroad, but they don’t keep the card once they’re back in the UK driving up costs.
"If we continue down this path, the majority of customers would end up supporting a small minority who benefit from the card’s rates, while not necessarily engaging with the wider benefits of Monzo," Monzo said in a blog post.
"We don’t think that’s fair. We want to find a solution that benefits the Monzo community as a whole," the firm added.
To soften the blow on its customer the bank has now asked them to decide how much they want to be charged on its new ATM fees.
In a poll posted on its website, the firm is offering three options to its customers: a 1 per cent fee on ATM withdrawals in Europe, with a two per cent charge for withdrawals in the rest of the world.
A 1.5 per cent charge for withdrawals everywhere outside the UK or a £200 free allowance per month, with a three per cent charge thereafter everywhere outside the UK.
Monzo fees abroad: What are your choices?
IN an attempt to be transparent, Monzo is letting its customers chose the model that seems fairer to them. Here are your choices
Option 1: 1 per cent charge for ATM withdrawals in Europe, 2 per cent charge for withdrawals Rest of World.
- ATM withdrawals in Europe cost us less than outside Europe.
- This option most closely reflects the charges we pay, with an average fee of around 1 per cent in Europe and around 2 per cent outside Europe.
- It’s the most direct way of passing through the cost of ATMs.
Option 2: 1.5 per cent charge for ATM withdrawals everywhere outside the UK.
- This is an average charge balancing our costs at European ATMs (which are slightly lower) and Rest of World ATMs (which are higher).
- It’s simple and means you don’t need to worry about which country you’re in.
Options 3: £200 free allowance per month, 3 per cent charge for withdrawals thereafter everywhere outside the UK.
- With this option, you’d be able to withdraw up to £200 for free in a foreign country every month.
- If you withdraw more than that, the fee for withdrawals would be 3 per cent.
Option 4: Monzo is open to any suggestions that they haven't considered.
You can vote on The poll is open for one week from today, and Monzo will aim to come to a decision and communicate it users as soon as possible after that.
The bank stressed it is a decision they want to "make in conjunction with you, our community".
A fourth option is also letting customers suggest ideas that the bank might have not considered.
You can have your say on the decision. The poll is open for one week from today, and Monzo will aim to come to a decision and communicate it users as soon as possible after that.
Monzo was founded in 2015 and gained a banking licence last year.
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