Neon, a Switzerland-based mobile banking app, announced on Monday it is eliminating extra fees for card payments abroad. The company revealed the exciting news by stating the following:
“To pay so much in fees while abroad is just not ok anymore. Card payments and cash withdrawals mean additional fees and surcharges every time. Now we have good news for you: as of January 2020, all card payments abroad are as easy as at home, completely free of charge. And for withdrawals we have reduced the fee to 1.5%. In both cases you benefit from the best exchange rate – namely the Mastercard reference rate without any surcharge.”
Neon also revealed for cash withdrawals users only pay in Switzerland if they withdraw more than twice a month (2 CHF). They may withdraw a maximum of 1,000 CHF per withdrawal, so up to 2,000 CHF is free. Abroad, they always pay 1.5%, without any additional charges – they get the Mastercard reference course.
“We do not charge any fees for card payments abroad. However, depending on the merchant or ATM operator, they may charge fees or exchange rate surcharges. This applies to all cards, not just ours, of course. You can avoid foreign exchange rate surcharges if you pay abroad in the local currency (not CHF). This is also the case online, so we recommend paying in CHF only in Swiss shops.”
Founded in 2017, Neon describes itself as an account on smartphones. The company noted its “mobile without limits.”
“Excessive fees, inflexible opening times, too much bureaucracy and complicated, slow apps. To us, it was clear: it can’t go on like that. That’s why we built neon.”