Foreign ATM Withdrawals


Being a user of Starling and Monzo, Monzo are going to start charging a fee for cash withdrawals abroad, will Starling be eventually charging for this or will it remain free?


I don’t think anyone will be able to answer your question.

We will only know if/when Starling make an announcement. There is little point speculating when we have no inside knowledge of the Starling business.

Until we hear otherwise, we should proceed on the basis that it will remain free.


I would rather not have fees, but I would back a sensible ATM limit for cash withdrawals abroad in order for these costs not to spiral out of control.


The ATM charges thread at Monzo has become huge - column-yards of discussion.

Like you say Ben, let’s not go there unless we have to.


I have both Starling and Monzo, in fact I invested in Monzo, I need to sell my crowdfunding shares when I work out how to do it.

For me, Starling wins hands down, I love the colour of the card, the app works for me, I think their forum is far better, less IT oriented, as for the ATM charges, the Monzo thread is getting out of hand, and people are getting so wound up, my thoughts are if you don’t like it close your account!
Just saying …


Shhhhhh do t open Pandora’s box.

In serious though I think they can easily keep them free.

Monzo made choic too soon. With their current accounts the overdraft fee would more than have paid any fees and then some.

Starling just need to scale up in a manageable way.


Since we know just how expensive foreign ATM withdrawals are, I think it’s pretty naive to assume that Starling will be able to continue offering fee free foreign withdrawals, once they have a larger user base.

I’ve explained this in more detail here -

The best case scenario that I can imagine would be for Starling to subside the cost of these withdrawals, from their revenue / investor’s capital. So Starling users would have to pay a fee but not the whole cost. That makes sense if you view that cost as a marketing cost, which presumably they do at the moment.

But covering the full cost indefinitely looks like a very bad (unsustainable) business model to me. That’s just my opinion :slight_smile:


Or Cap withdrawals.


Capping withdrawals is not good from a business sense as the bank still incur a cost and they then may need to recoup it from other customers.

If it costs a bank 1% on any withdrawal in Europe and 2% outside Europe, if you are seeking to cover your costs yet allow a certain free allowance say the first €200 of withdrawals, you still incur charges and therefore anyone instead of being charged 1% above that may need to be charged 2%.

Around the world costs to the bank vary. While it may cost £1 for a withdrawal in Europe, in some parts of the world withdrawals may cost the bank £7-8! It may therefore be better if a free allowance was given to limit it to Europe only.

The costs to the bank are not one amount but in most cases a combination of a fixed fee and a percentage fee. This can mean if a customer withdraws $20 ten times rather than $200 once it will cost more. Maybe a way to limit overseas withdrawal costs is therefore to introduce a number of free withdrawals as well as an amount.

While Starling may not be considering charges at this time (and hopefully with their plans to launch in Europe they will make some commitment to free withdrawals in Europe) these are factors that need to be considered.

The morally best approach is to cover costs as equitably as possible rather than have customers using the card in some regions cross subsidizing customers using their card elsewhere.

It currently looks like Monzo will be voting for a charging tariff where a customer who incurrs Monzo 1% for a withdrawal in Europe gets charged 3%! If so this could lead to a boost to Starling as disgruntled customers move from Monzo to Starling.


I’ll buy them.


Sarah said the following about a month ago here:

Hello, Our ATM withdrawal limits of £300 per day or 3 withdrawals are put in place to prevent or reduce the impact should you or your card be compromised for any reason –
so it’s there to help and protect you account. It is not for a cost reason and we don’t have any plans to charge our customers for ATM withdrawals. Based on your experiences - and the suggestion that 3 might be too low - I am discussing these thresholds with our team here and will update you on any changes applied.

That’s all we know from Starling so far. It doesn’t make sense to me for Starling to introduce any fees until they’ve been in service for at least a year. You can’t just assume that the costs and profits will be the same for a full-fledged current account (with overdrafts + marketplace) and a prepaid card.


I don’t know how it might work!


Hi Johnny
I don’t know how this would work?


Don’t mention on the other forum or you will have a very full inbox. I can’t find the post but someone was offering a substantial amount over the value.


But why would they pay more?


I’ve no idea? Have a look on monzo forum?

just had an email from Crowdcube - after my enquiry to them - about the actual process of transferring shares into new ownership and got this answer

"Hannah Row
Hannah Rowe (Crowdcube)
Jul 11, 12:46 BST
There are no costs involved with transferring shares. We do not currently have an FAQ on the matter, but essentially all that will happen is that the shares will be transferred to the person of your choice. We will handle this process ourselves, we just need to ensure we have your consent and the consent of the new owner. Our legal team will sort this out once your chosen person has created a Crowdcube account.
Kind regards
Hannah Rowe

Community Executive

t: 01392 241319 w: www.crowdcube.com5
Crowdcube is authorised and regulated by the Financial Conduct Authority (No. 650205)"

would anybody want to sell at this time given the rise in customer numbers and the possible potential to come ? - this isn’t a request to buy any by the way :slight_smile: edited - I also don’t want to sell it was as Dave said just for info
The price would presumably be set between buyer and seller as an amicable agreement - and presumably Crowdcube would hold the funds until both parties have signed - surprised there are no fees from crowd cube for this service :slight_smile:

Offers to pay at least 1.5 of value.


Thanks very much for this info Drew


Can sell them to me :eyes:


At the moment Monzo are preventing sale of their crowdfunding shares on the secondary market, but exceptions are made in exceptional circumstances at the discretion of Monzo. One such recent sale was at 150% of original purchase cost, but that was before the ATM charges fiasco


As stated earlier in this post, let’s just wait and see what happens. Starling may have a master plan. Maybe entering the European market will provide the answer. This could post could spiral into the unknown otherwise.

Monzo don’t know what Starling’s plans are and nor do we. I’m happy with the fingers crossed approach at this time until told otherwise!!