Monzo’s introducing new ATM fees: Here’s how much you’ll pay using your card abroad | Morning Wire

Monzo has revealed how much customers will now have to pay to withdraw cash when abroad.

The digital challenger bank earlier this year said it would have to bring free withdrawals to an end because it was costing it too much.

After speaking to its users, the new fee will be set at three per cent for any withdrawals made over £200 per month, something which will come into force from 18th December.

Read more: Podcast: Monzo’s Tom Blomfield – the coolest man in fintech

This will be for anyone who has a full current account, which by this date, Monzo says everyone will have access to. For those still using a prepaid card, they will only be able to make one withdrawal for free per month of up to £200, essentially incentivising anyone still using it to switch over to a full current account.

Remaining free will be using it for getting cash from ATMs in the UK, spending in shops abroad and online transactions in foreign currencies.

“Thanks to you, we think we’ve found a fair solution that is still significantly cheaper than the other banks we tested,” the startup said in a blog post.

Read more: City calls for fintech sector deal to ensure UK remains leader after Brexit

“As we mentioned before, it may be possible to find specific cards that offer cheaper withdrawals abroad. Our aim is not to always be the absolute cheapest on the market if it means we can’t build a sustainable business, but instead to find a fair way to meet this cost as part of the overall Monzo experience.”

The change follows fresh figures from the fintech which revealed that pre-paid cards are costing it £50 per user.

The new structure was one of three options that had been put to users who were then asked to vote. It gained two-thirds of support, ahead of a one per cent fee in Europe and two per cent elsewhere, and a 1.5 per cent fee everywhere outside of the UK.