My Monzo Review After Comparing Exchange Rates and Fees

On a recent loop through Lisbon, New York and Bangkok, I used my Monzo card alongside Wise and Revolut to see how its exchange rates and fees really hold up on the road. Monzo markets itself as a simple, fee-free way to spend abroad, but the reality varies depending on how you travel, how much cash you need and whether you already rely on other fintech apps. After several months of side-by-side testing and digging into the latest fine print, here is my practical Monzo review from a traveler’s point of view.

How Monzo Handles Exchange Rates When You Spend Abroad

Monzo’s biggest selling point for travelers is that it passes on the Mastercard exchange rate with no extra foreign transaction fee on card purchases. In practice, when I tapped my Monzo card to pay for a 15 euro lunch in Lisbon in May 2026, the app immediately showed the transaction at the daily Mastercard rate, with no separate fee line added. Monzo itself confirms in its help pages that it uses the Mastercard rate for spending abroad and does not add a markup or foreign usage fee on top of that for standard card payments.

This is subtly different from the “mid-market” rate you might see quoted on a currency site, but in real terms the gap on common routes like GBP to EUR or GBP to USD was tiny on my trips. On a 100 euro restaurant bill in Portugal, the total difference between the Mastercard rate on Monzo and the mid-market rate displayed in a separate currency app worked out to well under 1 pound. For most casual holiday spending, that is effectively negligible compared with the 2 to 3 percent foreign transaction fees still charged by many traditional UK debit and credit cards.

Monzo also clearly shows the rate used and the equivalent in pounds in the app right after each transaction, which matters when you are juggling several currencies. Landing in Bangkok, my first 500 baht test purchase popped up in the Monzo feed with a live notification telling me the effective rate and the total cost in sterling. This sort of instant transparency is a genuine upgrade from older high street bank cards, where you might only see the final converted amount days later on a statement.

The main caveat is that Mastercard’s rate changes throughout the day and can sometimes sit slightly above or below the headline mid-market rate. Monzo is upfront that it does not control this, and the spread can be a touch wider on more exotic currencies. If you are moving thousands in Thai baht or Mexican pesos, a specialist like Wise that promises the mid-market rate could still be marginally cheaper. For everyday card spending under a few hundred pounds, however, the convenience and simplicity of Monzo’s approach outweighed any small difference I saw on my trips.

ATM Withdrawals Abroad: Limits, Fees and Real-World Pain Points

Where Monzo starts to look less generous is when you need cash. Monzo allows fee-free cash withdrawals abroad, but only up to certain limits and with some fine print that depends on whether it is your “main” bank account and where you are in the world. According to Monzo’s current guidance, if you use Monzo as your main account in the UK, you can make unlimited free ATM withdrawals in the UK and across the European Economic Area. Outside the EEA, you typically get up to 200 pounds equivalent every 30 days fee free, and then a 3 percent fee applies on any additional withdrawals in that period.

This limit becomes very real in cash-heavy destinations. In Bangkok, I withdrew the equivalent of about 180 pounds in Thai baht over two ATM visits during a long weekend. That kept me just under the 200 pound allowance, so Monzo did not charge any extra fee. However, if I had been backpacking for weeks through Southeast Asia using only Monzo and relying heavily on cash, I would have hit the 200 pound threshold quite quickly. At that point, the 3 percent fee would start to bite: withdrawing another 200 pounds equivalent over the same 30-day window would attract about 6 pounds in Monzo fees on top of any local ATM charges.

By contrast, rivals like Revolut and Wise structure their own ATM limits differently. On basic plans they also cap free withdrawals, but Revolut, for instance, often allows a higher monthly cash allowance on its paid plans, which heavy cash users may find more forgiving. In Turkey on a previous trip, I paired Monzo with Revolut specifically to avoid going over the Monzo limit once I knew I would need several cash withdrawals for taxis and small local shops. In practice, I used Monzo for card payments and Revolut for most ATM runs, which kept fees close to zero across both cards.

One further wrinkle is that local ATM operators can add their own fees, particularly in tourist areas. In New York, I tested Monzo in a Manhattan convenience store ATM that added a 3 USD charge on a 60 USD withdrawal. Monzo does not receive that money and cannot waive it. To avoid this, you need to hunt for fee-free ATMs, such as those at major banks, regardless of which card you use. The bottom line: Monzo’s ATM setup is perfectly adequate if you mainly tap to pay and only occasionally need small amounts of cash abroad, but it is less ideal for long, cash-heavy trips where those 3 percent fees quickly accumulate after the allowance is used.

Monzo vs Wise and Revolut on Exchange Rates and Fees

No review of Monzo for travel is complete without comparing it to Wise and Revolut, the two other big names in the travel money space. Wise and Revolut both focus heavily on pricing transparency and consistently advertise that they use a mid-market or interbank rate with minimal markups. Monzo follows a different model: it leans on Mastercard’s card network rate for card spending and integrates Wise behind the scenes for international bank transfers, while keeping its core current account simple for everyday domestic banking.

On pure card spending, the gap between these three players was surprisingly small in my testing. In Lisbon, I paid the same 20 euro café bill three ways on different mornings: once with Monzo, once with a Wise card and once with Revolut. Depending on the day’s rate, each app converted the bill to between about 17.10 and 17.20 pounds. The total difference across the three cards on any given purchase was usually less than 10 pence, far below the roughly 50 pence that a legacy bank card with a 3 percent foreign transaction fee would have added to the same bill.

The differences emerge with heavier use and specific behaviors. Wise tends to win on large bank-to-bank transfers because it always uses the mid-market rate and charges a clear percentage fee. If you are wiring 5,000 pounds to a US or European account to pay a deposit on a long-term stay, Wise via its own app is normally cheaper and more flexible than initiating that transfer through Monzo’s integrated flow. Revolut, on the other hand, can be cheaper for active travelers who exchange and hold multiple currencies in advance, especially on its paid plans where the fee-free FX allowance is generous and covers both card spending and transfers during the work week.

For everyday holidays, though, Monzo holds its own: pay in local currency at shops and restaurants, keep ATM withdrawals modest, and you will usually pay about the same overall as a Wise or Revolut user, without needing to manage multiple balances or worry about weekday and weekend pricing bands. The important distinction is that Monzo is first and foremost a UK current account that happens to work very well abroad, while Wise and Revolut are more like multi-currency wallets designed with travel and cross-border payments at their core.

Real-World Trip Scenarios: Where Monzo Shines and Where It Struggles

On a short city break, Monzo feels almost tailor-made. Flying from London to Lisbon for four days, I used Monzo exclusively for restaurants, metro tickets, museum entries and a couple of bar tabs. Every payment went through at the Mastercard rate with no foreign transaction fee, and I did not need cash at all because contactless acceptance in Portugal is excellent. The app’s travel notifications, spending categories and instant alerts helped me keep a running total of my euro costs in pounds, which made budgeting easy. For this sort of modern, card-friendly city trip, there is little reason to reach for anything else.

Things felt similarly smooth in New York, where card payments dominate. I used Monzo to pay for ride shares from JFK, coffees in Brooklyn and a Broadway ticket, and the overall cost in pounds tracked closely to what I saw on the live GBP to USD mid-market rate during that week. The only frustration came when a hotel hold temporarily ring-fenced several hundred dollars for incidentals, which Monzo showed as a pending transaction. That is not unique to Monzo, but it is a good reminder to keep a backup credit card for big deposits rather than tying up a large chunk of your current account balance while you travel.

In Bangkok, Monzo’s strengths and limits were both clear. Tap-to-pay worked in many malls, international coffee chains and larger restaurants, and the exchange rate was fair every time. But smaller street food stalls and local taxis wanted cash, which meant dipping into ATMs. Over a 10-day stay, I quickly brushed up against the 200 pound overseas ATM allowance as I withdrew Thai baht every few days. Once I projected that I would need more cash, I shifted to using Wise and Revolut cards for withdrawals to avoid Monzo’s 3 percent fee beyond the allowance. Monzo remained my go-to for card payments, but its role shrank wherever cash was king.

In rural parts of Turkey on an earlier trip, I ran into a different issue: many local ATMs defaulted to dynamic currency conversion, offering to charge my card in pounds at poor, marked-up rates instead of in lira. With Monzo, the key was to always decline these offers and insist on being charged in the local currency. When I did, Monzo’s Mastercard rate kicked in and the cost was reasonable. When I allowed an ATM or merchant to convert to pounds, the markup was often several percent higher than Monzo’s own rate would have been. This is not Monzo’s fault, but it is an important practical tip: to get the full benefit of Monzo’s fair exchange rate, you always need to choose the local currency on the terminal or ATM.

Other Fees, Account Tiers and Hidden Gotchas

Monzo’s core travel proposition rests on its free current account, which already includes fee-free card spending abroad, instant notifications and those limited overseas ATM withdrawals. The bank also offers paid tiers such as Monzo Perks and Monzo Max, which bundle extras like higher interest on savings pots, additional insurance products and sometimes more generous limits. If you travel frequently in the EEA and make Monzo your main account, you may benefit from unlimited fee-free cash withdrawals across the UK and EEA, but for most casual travelers this will not materially change the experience beyond not worrying about ATM use in the eurozone.

It is also worth being aware of fees that can appear in more niche situations. For example, receiving payments into Monzo in certain foreign currencies that are not pounds or euros can attract a currency conversion fee, which is capped but still relevant if you are a digital nomad being paid from overseas. Similarly, if you need a replacement card sent abroad because you lost your wallet, Monzo may charge a delivery fee depending on your plan. These are edge cases for most holidaymakers, but they matter for long-term travelers who end up treating Monzo as their primary financial hub while hopping between countries.

One positive aspect of Monzo’s design is how clearly it surfaces any fees it does charge. When you approach your overseas ATM allowance, for instance, the app can flag the situation and explain that further withdrawals will incur a 3 percent fee. When you make your first foreign purchase on a trip, Monzo often sends a friendly in-app message explaining which exchange rate is being used and reminding you that merchants may offer dynamic currency conversion at poorer rates. This sort of contextual education is invaluable if you are not already a seasoned travel hacker.

What Monzo does not yet offer is a dedicated multi-currency balance in the way Wise and Revolut do. You cannot, for example, pre-buy 1,000 euros inside Monzo, hold them and then spend against that pot months later while fully insulated from GBP swings. All card spending and most activity flows through your main pound balance, with conversion happening at the point of transaction. For some travelers, that is a feature rather than a bug: fewer balances to manage, one clear view of your money. For others who want to actively manage FX exposure, it will feel limiting compared with a true multi-currency wallet.

The Takeaway

After several months of testing Monzo alongside Wise and Revolut across Europe, North America and Asia, my view is that Monzo is an excellent all-rounder for travel, particularly if you are already using it as your main UK bank account. For day-to-day card spending abroad in shops, restaurants and on transport, its use of the Mastercard exchange rate with no extra foreign transaction fee makes it significantly better value than most traditional debit cards, and in line with the specialist fintech crowd on typical holiday amounts.

The weaknesses show up around cash and more complex international money needs. The 200 pound overseas ATM allowance outside the EEA before a 3 percent fee kicks in is fine for short, card-heavy trips but can become expensive on longer, cash-dependent journeys. Likewise, if you regularly send or receive large international transfers, Wise or Revolut will usually beat Monzo on transparency and flexibility thanks to their mid-market rate focus and native multi-currency balances.

The simplest strategy for many travelers is to treat Monzo as the backbone of their travel finances and pair it with at least one specialist. Use Monzo for booking flights and hotels, for everyday spending abroad, and for keeping a clear overview of your budget through its excellent app. Use a Wise or Revolut card as a backup and for heavy ATM use or large transfers. With this combination, you enjoy Monzo’s strengths in app design and fair card rates while sidestepping its main fee hotspots.

If you prefer a single, straightforward solution, Monzo alone will still save you meaningful money compared with a traditional high street bank card on everything from a weekend in Lisbon to a fortnight in New York. Just go in with open eyes about the ATM rules, always choose to pay in the local currency rather than pounds, and keep a backup card in your wallet for emergencies. Managed this way, Monzo is a reliable and traveler-friendly companion rather than a source of nasty exchange rate surprises.

FAQ

Q1. Does Monzo charge a fee when I pay by card abroad?
Monzo does not add its own foreign transaction fee to standard card purchases abroad. Your payments are converted at the Mastercard exchange rate, which may differ slightly from the mid-market rate but, in typical destinations and amounts, is usually far cheaper than traditional bank cards that add a 2 to 3 percent foreign usage fee.

Q2. How much cash can I withdraw abroad with Monzo before paying extra?
Monzo allows fee-free overseas ATM withdrawals up to a set allowance, which currently depends on whether Monzo is your main account and whether you are inside the European Economic Area. As a rough guide, expect unlimited fee-free withdrawals in the UK and EEA if Monzo is your primary account, and around 200 pounds equivalent per 30 days fee free outside the EEA, after which a 3 percent fee applies on additional withdrawals in that period.

Q3. Is Monzo cheaper than Wise or Revolut for spending abroad?
For everyday card spending like meals, attraction tickets and local transport, Monzo is broadly comparable in cost to Wise and Revolut on common currencies, with differences often amounting to just a few pence per transaction. Wise tends to win on large bank transfers, while Revolut can be cheaper for active currency traders or heavy ATM users on paid plans, but for most holiday purchases Monzo delivers competitive overall value.

Q4. Can I hold foreign currencies in Monzo like I can with Wise or Revolut?
Monzo does not currently offer a true multi-currency wallet for everyday users in the way Wise and Revolut do. You cannot pre-buy and store significant balances in multiple currencies in the main app. Instead, Monzo converts from your pound balance at the point of transaction using the Mastercard rate. This keeps things simple but offers less control for travelers who want to manage exchange rates in advance.

Q5. What happens if an ATM or shop abroad offers to charge me in pounds instead of local currency?
When an ATM or card terminal abroad offers to charge you in pounds, it is using dynamic currency conversion, which almost always comes with a poor exchange rate and extra markup. To benefit from Monzo’s fair Mastercard rate, you should always choose to be charged in the local currency of the country you are in and decline any offer to convert to pounds on the spot.

Q6. Is Monzo a good single-card solution for longer trips?
Monzo works well as a single-card solution for many travelers on trips of a few weeks, especially in card-friendly destinations where cash use is limited. For longer, cash-heavy adventures or extended stays in regions where ATMs are essential, you may find Monzo’s overseas ATM allowances restrictive and its 3 percent fee beyond the limit costly. In those cases, pairing Monzo with a Wise or Revolut card for additional cash withdrawals and transfers is often more economical.

Q7. Does Monzo use the mid-market rate like Wise?
Monzo relies on the Mastercard exchange rate for card spending, which is separate from but usually close to the mid-market rate shown on currency sites. Wise, by contrast, explicitly uses the mid-market rate and charges a clearly stated percentage fee on top. The practical difference in total cost on small to medium card purchases is usually minor, but Wise’s structure can be cheaper for large international transfers and some niche currency routes.

Q8. Are there any hidden Monzo fees travelers should know about?
Monzo is generally transparent about its fees. The main ones travelers should note are the 3 percent charge on overseas ATM withdrawals beyond the free allowance outside the EEA, possible currency conversion fees on certain foreign currency payments received into the account, and delivery charges if you need an emergency replacement card sent abroad. Local ATM operator fees are separate from Monzo’s charges and can apply regardless of which bank you use.

Q9. Is it safe to use Monzo as my main card abroad?
Monzo is regulated in the UK, and its app-based controls make it well suited to travel. You can freeze and unfreeze your card instantly, receive real-time payment alerts and set tight spending limits. In practice, this makes it as safe, and often more controllable, than many traditional bank cards on the road. As always, you should still carry a backup card from a different provider in case of loss, network outages or local acceptance quirks.

Q10. Should I get Monzo if I already have Wise or Revolut?
If you already rely on Wise or Revolut for currency exchange and travel spending, adding Monzo can still be useful because it functions as a full UK current account with strong budgeting tools and solid travel performance. Many frequent travelers use a combination: Monzo as their main everyday bank and primary travel card, Wise for large cross-border transfers, and Revolut for holding multiple currencies or making the most of premium travel perks on specific plans.