UK-based digital banking group Monzo announced on Wednesday it will now allow cash withdrawals in the European Economic Area (EEA) to be free. This news notably follows a change in EU regulation on cross-border payments we’ve decided to remove ATM fees and limits for countries in the area. The countries in the EEA are the following:
Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Spain, Estonia, Finland / The Åland Islands, France, Gibraltar, Guadeloupe, Greece, French Guiana, Croatia, Hungary, Ireland, Iceland, Italy, Liechtenstein, Lithuania, Luxembourg, Latvia, Saint-Martin (French side), Malta, Martinique, Mayotte, Netherlands, Norway, Poland, Portugal, Réunion, Romania, Slovakia, Slovenia, Sweden, United Kingdom.
Monzo also noted that withdrawals in non-EEA countries haven’t changed and users may still take up to £200 out for free in a 30-day window, then there’s a 3% fee on top of that to cover the digital banking service’s cost.
“When you’re using Monzo, you should always choose to pay in the local currency if you can. If you choose to pay in pounds, it’ll usually end up costing you more. When you choose to pay in pounds, the shop or ATM will convert your payment using something called ‘dynamic currency conversion’ (DCC). This means that when they convert your payment, they can choose the exchange rate they use to make the conversion.”
Monzo went to conclude that users may still spend with their Monzo card anywhere in the world, for free.
“When you use your Monzo card abroad, we pass Mastercard’s exchange rate directly onto you. We don’t add any extra fees or charges when you pay with your card.”