The Monzo Forum thread

#629

Yeah - I’d unsubscribed from that thread months ago but have just taken a look at the comments by the paypoint retailer, which start here

Personally, I have not felt previous criticisms of the use of paypoint (fees, poorly trained staff) were much of an issue as I’ve always felt the benefits (lots of locations) outweigh these limitations and staff training/awareness can improve with time.

But if accurate, the insight from the paypoint retailer is the first issue that leads me to feel Monzo should back out of their deal with Paypoint.

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#630

Well, to be fair: it’s not monzo suggesting that. Not even a monzo customer but just a customer of some prepaid card visiting the monzo forums. But I found it extraordinary nonetheless…

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(What the Fork Dude?) #631

A number of people on the thread seem to suggesting paying a “convenience fee” for something that (and I don’t think I’m exaggerating here) literally every other bank offers for free.

Put aside whether or not you like Monzo for a second, I cannot comprehend why anyone would do that. Surely you must go to a bank that suits yours needs.

I don’t have to pay in cash ever so it wouldn’t affect me but if you need to pay in cash simply don’t bank with Monzo or have two bank accounts.

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#632

Clearly different people have different opinions on this but I can very much relate to the convenience argument.

I would rather spend 5 minutes + £1 walking to and from my local convenience store to deposit £100 than spend 45 minutes + £0 going to and from my nearest bank branch to deposit the same amount. My thinking is I consider 45 minutes of my time worth more than £1.

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(l8n.me) #633

Because Monzo.

It’s no different to paying in cheques. People should punish Monzo for policies they don’t like, but instead they enable them to continue doing things they don’t like, like having another account with cheque imaging and then transferring the money over. I get that people want to support them but that is the polar opposite of what is needed. Instead of saying ‘I’ll work around this, say I’m going elsewhere. It’s the only way businesses learn, when the money walks.

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(Adrian) #634

I don’t expect there will be that many places in the UK which are 45 minutes away from either a bank branch or a post office but within a 5 minute walk of a paypoint convenience store though.

Probably some, but not many - so a bit of a niche market for Monzo and their ‘convenience’ fee to sit.

#635

I’m not 45 minutes away. It’s a 45 minute round trip factoring in some minutes for queuing - particularly on a saturday morning which is when I’m most likely to have time to deposit cash.

But yeah, the cost-benefit analysis will vary from person to person.

#636

I live in a village where there is no bank, and no dedicated post office (although the post office in the local shop does accept paying cash in and withdrawing).

The shop is also a paypoint merchant.

It would take me around an hour round trip to deposit cash right now (at a bank) - An hour of my time is worth far more than a pound (forgetting about the cost of fuel and potential parking).

So, I don’t have an issue as such with that charge per se, and if we are moving to a digital banking system with no branches etc, there will have to be a compromise somewhere.

My biggest issue here is that there currently IS a better solution than PayPoint, which has been shown to be unreliable, terrible service, and seemingly poor business practices.

I don’t like comparing Starling and Monzo with every little decision they make, but clearly Starling thought long and hard about this, negotiated with the PO, changed the cards (at their cost), and made it work very well.

Monzo tried to sell the benefits of PayPoint, and actually play down the benefits of the PO (in my opinion, to justify their decision) - But now they seem to have admitted defeat, and are looking at a PO integration.

Whilst there is a free solution to paying in cash for legacy banks (branch and PO), and for challenger banks (Starling and PO), the “fee” argument will exist.

If the PO does start charging, there will be less of an argument.

I’d certainly not revert back to going into a branch for the sake of £1 though (especially given I do it once per year at best).

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(l8n.me) #637

But the Post Office already charge. This idea that everyone will suddenly have to pay to use it is a bizarre argument made by a small number of people on the extremes of fandom of one particular bank mainly. If the post office currently don’t make enough money from their contracts, they will renegotiate and banks will make a decision whether they want to keep using the service or not. Can you honestly see Barclays deciding to charge customers a quid to use the Post Office? No. They’ll negotiate hard, and come to a decision that they can either take the extra hit, or stop using the Post Office service based on the outcome of those negotiations. As will all banks. Some will stay and pay the higher fee, some will negotiate a blinder and have no increase, I’d imagine because the Post Office will decide they’re too big to lose entirely if that’s what they’re threatening, and the odd one will stop using the service. Very few if any will suddenly slap on a fee for using it because it makes little business or PR sense.

Those of us who are old enough will remember when Barclays I think it was threatened to start charging users of other banks to use their cashpoints again. It caused such bad press at the time for them they ended up backtracking. I’ve no doubt there was more to it than at first glance, there always is, but it created such a negative sentiment for quite some time.

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#638

When you switch your account, they don’t even disable the login. I got told they have to keeo your data for 6 years, and in that time you can log into the account and access the information there, but the account is closed.

#639

I’m on my phone, so can’t be bothered to quote the relevant bits :joy:

I’m not even going to try and pretend to understand the contract talks between the PO and the banks. Quite frankly, had I not been on these forums and Barclays announced they’d be charging customers to deposit cash at PO’s, my first thought would be…

“What? You can deposit cash at a PO!?” - I genuinely didn’t know this was a thing, and I’ve spoken to a few people who also didn’t realise you could do this.

That being said, I’d agree that the potential bad PR, probably isn’t worth the extra cost to the bank (the high street banks) - Although I don’t have the stats to back that up.

Starling are in a slightly different position, where they still aren’t as profitable as the high street banks, and possibly couldn’t afford to take the hit (whatever that may be).

Again, purely a guess, and I’m likely completely wrong!

Question for people who don’t like the Monzo charge…

IF Starling had to charge £1 for cash deposits due to the PO increasing their prices, and the bank passing the charge to the customer…

Would you pay the charge, or deposit at your legacy bank?

(What the Fork Dude?) #640

If i had cash to bank I’d deposit at a legacy bank or ask the person who gave me cash to bank transfer instead (Since N26 is my primary I just ask people to transfer money to me anyway)

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(Adrian) #641

I would be surprised, given that the Post Office will have already known that they aren’t able to make money on bank cash deposits from their existing contracts, if the contract PO negotiated with Starling didn’t already include an increase above what is paid by the high street banks.

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(l8n.me) #642

I would imagine fees increases will be per transaction, so unless Starling’s half mill customers suddenly decide to do every bit of banking via the Post Office, the chances it would have a huge impact on Starling’s bottom line would be minimal, ditto Monzo.

The Post Office also very recently got a lot of good PR from launching the service with Starling, so I’d expect them to be the last on the list when it comes to this. How embarrassing, and again bad PR would it be to “Yay! We’re launching this!” then 6 months later “Now were massively increasing the costs because we got it majorly wrong!” Only Monzo are so brazen to do that! :see_no_evil::joy:

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#643

I hadn’t used monzo for a year after closing my account when, the other day, I decided to use them again as my spare change bank, as Starling never bothered with DDs from a goal and as N26 don’t even save payees.

I logged in and ALL the info was there. All my previous transactions, etc. Although I appreciate they have to save the info for a while so that’s fine. I couldn’t do anything with it though… As it was closed.

When I rang them up about opening an account with them again they just opened my previous one immediately. He asked if I still had my old card (and I did cos it was shiny! :joy:) and he simply unlocked that too! It was as if I never left!

I did find it quite creepy and I didn’t really like the idea of it all just being paused when I specifically asked for it to be closed… But it also helped me out so I massively overlooked my unease and used it anyway! :joy: :joy: #principles-schminciples!

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(sam) #644

Closed should mean closed.
I imagine this technique helps them to boast about how many accounts they have open

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(Adrian) #645

I wonder if they can do that if you have CASSed out as they will have had to put a redirect in to your new account which would have to be removed.

Might try it one day if I ever feel like having a Monzo account again.

I know I can still log in to Monzo web - not tried the app.

(Dan Mullen) #646

It’s true that they have regulatory obligations to hold onto your data for six years. However, that doesn’t mean you should be able to login to a closed account.

#647

I think there is the issue, they have to legally keep the information, but I think you will find they have to ensure that if an account is closed that information is no longer viewable and kept purely for legal reasons.

In fact the British Bankers Association Industry Guidance approved by the FCA state similar. Also the FCA handbook has a section on Data Protection which covers a closed account being closed to the customer.

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(sam) #648

I cass’d mine, so part of the Cass rules afaik are that the account must be closed. I just downloaded and logged in and the account is still there…