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.
The bank stressed it is a decision they want to "make in conjunction with you, our community".
Monzo was founded in 2015 and gained a banking licence last year.
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Customers manage their finances with the app, with real-time updates showing the user how much they are spending and on what.
The bank started rolling out a free current account earlier this year and plans to invite all customers to switch from the current prepaid Mastercard to current accounts before the end of the year.
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