Can You Use Monzo in America? | Benefits and Limitations Explained

Monzo, a digital bank that has taken the UK by storm, offers a sleek and user-friendly platform for managing finances. But when travelling to the United States, many users wonder: Can you use Monzo in America, and how effective is it compared to local banking options?

In this blog, we’ll dive deep into the practicality of using Monzo in the USA. From its standout benefits to its limitations and strategies for making the most of your Monzo card abroad, here’s everything you need to know for a hassle-free experience.

What Makes Monzo So Popular Among UK Users?

Monzo has revolutionised banking in the UK by blending technology with transparency. Here’s why millions of users trust it:

Digital-First Experience

Monzo operates entirely through its mobile app, removing the need for physical branches. This allows users to manage their accounts, transfer money, and monitor spending at their fingertips.

Budgeting Tools

Monzo’s budgeting tools are among its top features. Users can:

• Categorise spending into segments like groceries, entertainment, and travel.
• Set monthly budgets to avoid overspending.
• Receive alerts when approaching their limits.

Fee Transparency

Unlike traditional banks, Monzo is upfront about its fees. For UK users, features like no hidden costs for international payments and ATM withdrawals (within limits) are significant advantages.

Instant Notifications

Each time you make a transaction, Monzo sends an instant notification. This helps users stay on top of their finances and quickly spot fraudulent activity.

These features have made Monzo a trusted companion for everyday banking in the UK. But how does it perform overseas, particularly in the USA?

Can You Use Monzo in America?

Yes, Monzo is fully functional in the United States, thanks to its Mastercard backing. However, there are important details to keep in mind:

Card Usage

As a Mastercard, Monzo is widely accepted at American retailers, restaurants, and online platforms. Whether you’re shopping at Walmart, dining at a local café, or booking an Uber, Monzo works seamlessly.

ATM Withdrawals

You can withdraw cash from ATMs in the USA without fees, but only up to a limit of £200 every 30 days. After this, a 3% fee is charged. Most ATMs in the US will also display additional fees (typically $2–$5), which are independent of Monzo’s policies.

Banking Licence Restrictions

Monzo does not hold a US banking licence. This means you cannot:

• Set up direct debits for US-based accounts.
• Receive paychecks or government benefits into Monzo.
  Despite these restrictions, Monzo is ideal for short-term travel or casual usage in the US.

What Types of Transactions Can You Make With Monzo in the USA?

Monzo’s functionality in the USA extends to a wide range of transaction types, making it a versatile option for various spending scenarios:

1. In-Store Payments

Monzo’s Mastercard compatibility means you can use your card at most retail locations in the US. Whether you’re shopping at Target or picking up groceries at Trader Joe’s, Monzo will work as seamlessly as a US-based card.

2. Online Purchases

Planning to shop on Amazon.com or book accommodations via Airbnb? Monzo supports online payments in USD and other currencies, with instant notifications and clear currency conversion details.

3. Contactless Payments

Contactless payment options, such as Apple Pay and Google Pay, are supported with Monzo cards in the USA. This is particularly helpful in urban areas where tap-to-pay systems are widely used.

4. Dining and Tipping

Using Monzo at restaurants is straightforward, but it’s worth noting that tipping in the US is often added after the initial payment. Ensure you check your Monzo app for the final deducted amount, which includes the tip.

5. ATM Withdrawals

Cash remains essential for certain transactions in the US, such as paying at local markets or tipping service providers. Monzo allows cash withdrawals, but plan carefully to avoid exceeding the free £200 limit.

With these transaction types supported, Monzo can cater to nearly all your spending needs in the US, provided you remain mindful of fees and limits.

What Should You Do If Your Monzo Card Stops Working in the USA?

Occasionally, users may encounter issues while using Monzo abroad. Here’s how to troubleshoot and resolve these problems effectively:

1. Check for Blocks or Alerts: Monzo may block transactions if they suspect unusual activity. Open the app to see if there’s a notification or alert asking you to confirm the transaction.
2. Ensure You’ve Enabled International Use: In your Monzo app settings, ensure that international usage is enabled. This feature helps prevent fraudulent activities but must be turned on for use outside the UK.
3. Verify Payment Terminals: Some US payment terminals, particularly in rural areas, might not accept international cards. In such cases, look for ATMs or terminals that explicitly support Mastercard.
4. Update Your App: Using an outdated version of the Monzo app could result in bugs or limited functionality. Ensure your app is updated to the latest version for optimal performance.
5. Contact Monzo Support: If issues persist, reach out to Monzo’s customer support via the app. While their team is UK-based, they can often resolve problems quickly, even for international transactions.
6. Carry a Backup Card: It’s always a good idea to travel with an alternative card or cash in case of unexpected issues. A secondary card from Revolut, Wise, or a traditional bank can be a lifesaver. By addressing these potential challenges proactively, you can ensure uninterrupted access to your funds while travelling in the USA.

What Are the Benefits of Using Monzo in the USA?

Monzo’s features make it a convenient choice for travellers. Here are the standout benefits:

1. Competitive Exchange Rates: Monzo uses Mastercard’s exchange rates, which are often better than those provided by high-street banks. For example, if the mid-market rate is £1 = $1.35, you can expect to get a similar rate with Monzo, minus negligible processing charges.
2. No Hidden Fees for Card Payments: Unlike some banks that add foreign transaction fees (up to 3% per transaction), Monzo allows fee-free card payments in the US.
3. Real-Time App Insights: The Monzo app provides detailed insights into your spending, even converting transactions into GBP for easy tracking. For instance, if you pay $50 at a restaurant, the app will display the equivalent cost in pounds.
4. Travel Budgeting: Using Monzo’s budgeting tools, you can set spending limits for your trip, ensuring you don’t overspend. You can also categorise expenses, making it easy to see how much you’ve spent on dining, accommodation, and transport.
5. Fee-Free ATM Withdrawals: Withdraw cash without fees, up to the £200 limit. This is helpful for small transactions at local shops or tipping service staff.

What Are the Limitations of Using Monzo in the USA?

While Monzo is a reliable travel companion, it has some drawbacks:

1. ATM Fees Beyond Limits: Once you exceed the £200 free ATM withdrawal limit, a 3% fee applies. For frequent cash withdrawals, this can become costly. Consider withdrawing larger amounts to minimise fees.

2. Lack of US-Specific Services: Since Monzo operates as a UK bank, it lacks essential US banking features, such as:

• ACH payments for local transfers.
• Receiving paychecks into your account.
  For extended stays, pairing Monzo with a local US account may be necessary.

3. Limited Customer Support: Monzo’s support team is based in the UK. If you face an issue during American business hours, you may need to wait due to time zone differences.

4. ATM Access in Rural Areas: In less populated areas, ATM access may be limited. Always check availability in advance, particularly if you’re travelling to smaller towns or remote locations.

How Can You Use Monzo Effectively in the USA?

To get the most out of Monzo during your trip:

• Track Your Free Limits: Use the app to monitor your £200 monthly ATM withdrawal cap.
• Opt for Card Payments: Credit and debit card transactions are widely accepted and fee-free.
• Plan for Emergencies: Keep some cash as a backup, as not all businesses accept card payments.
• Enable App Notifications: Stay updated on your spending and avoid surprises.
• Pair With a Local Account: If you plan to stay long-term, consider opening a US-based account for direct deposits and ACH payments.

How Does Monzo Compare to Alternative Travel Cards?

Here’s how Monzo compares to other popular travel card options:

Each option offers unique benefits. For example, Wise is better for large international transfers, while Revolut includes cryptocurrency trading for those interested.

What Should You Consider Before Using Monzo in America?

Monzo is an excellent option for short-term travellers or those comfortable relying on card payments. However, if you’re planning a longer stay, consider pairing Monzo with a local US bank account or exploring alternatives like Revolut or Wise.

By understanding Monzo’s benefits and limitations, you can make informed decisions and enjoy a stress-free travel experience in the USA.

FAQs About Monzo in the USA

Can I pay with Monzo at American retailers?

Yes, Monzo is accepted anywhere that supports Mastercard payments.

Are there any extra fees for using Monzo in America?

No additional fees apply for card payments, but ATM withdrawals beyond the £200/month limit incur a 3% fee.

How reliable is Monzo’s app abroad?

Monzo’s app works seamlessly in the USA, providing instant notifications and spending insights.

Can I use Monzo for local bank transfers in the US?

No, Monzo does not support US-specific payment systems like ACH.

What’s the best way to avoid ATM fees?

Withdraw larger amounts to minimise fees or rely on card payments.

Is Monzo better than Wise or Revolut?

Monzo excels in budgeting and transparency, while Wise and Revolut may offer better exchange rates for specific needs.