Fair Usage Policy Update


#44

@Mike - that’s an excellent suggestion. Given that many banks charge a minimum fee on cash withdrawals, it suggests that cash machine operators charge fixed fees to card issuers, irrespective of the amount withdrawn. Where charges are unpalatable, I’m in favour of them being directly related to cost.


#45

Okay, I understand that you need to change the fair policy. But why did you guys started to charge for cards for new users?!?
This is getting totally disappointing, give me back old Revolut service please! I don’t see anything REVOLUTionary any more If I have to pay for the first card, free ATM withdrawals only 200€, and etc…
Just make comparison with the old and new Revolut and everything will be clear!


#46

I too signed up on the basis of the generous ATM withdrawal amount, which has now been drastically reduced. And I was told originally that cards were free; I notice this if no longer the case! Very disappointing and is only a matter of time before they chip away at other perceived benefits over competitors or banks! Very disappointed.


#47

Well, I do understand the frustration. But think about the design of the product and that they need to come up with a sustainable business model.

– paying with card: Revolut makes money with interbank/merchant fees
– withdrawing cash with card: Revolut has to pay fees to ATM provider

The card is just not designed to replace a bank card to withdraw money in the home country more conveniently than with a card issued by one’s bank. Banks own their ATMs and cross-subsidize them with other fees.

To keep the basic product (a great card for spending money abroad) free for most customers, Revolut should “nudge” people towards cashless spending. And still: If one needs cash in a foreign currency abroad, Revolut is competitively priced.

But I do think they could change their policy: Limit the number of withdrawals, not the amount. Aren’t ATM fees fixed fees, independent from the amount one withdraws? Another option: a “premium” card with a monthly fee that comes with higher cash withdrawal limits. I believe they are working on that already.


#48

Thanks for understanding Frank. As AndreasK has mentioned, the fees for us are very high (your eyes would water at the monthly figure). In many cases we are charged a percentage per withdrawal by the ATM provider, so that is why our fee is percentage based, we are essentially passing our costs along.

We would love to make these free, but unfortunately until the ATM providers change their tune, we are at their mercy.

So what we are trying to do is save everyone money where we are in control, and cover costs where we are not (but even in these cases we try and keep it freemium, rather than just imposing a blanket fee to cover all costs, so you can still use these features for free when you need)

What I tend to do when I use my Revolut card whilst travelling: when I arrive I will take out a little cash, for taxis and incidentals, but it’s well under the cap. That gets me to the hotel and covers tips etc. Then wherever possible I will pay with my card, rather than cash, as the Revolut card is the best in the world for saving money whilst spending :smiley: And the other bonus is it gets my spending more organized as it’s all now categorized by the app.

In a situation where you required a large amount of cash from an ATM, it might be worth considering other options that might be cheaper and doing that instead, and saving your Revolut card for card spending and smaller amounts of cash withdrawals


£500 ATM limit - please raise it
#49

Okay let’s say that I agree with this. But the thing that you need to take back definitely is the free delivery for the first card!


#50

Hi @AndreasK,

Just to clarify this 5£ is for the delivery cost of the card. We have noticed that lots of users order their first physical card but not using it at all.

That was really expensive for Revolut, as the manufacturing cost of the card is included. Also, this was finally affecting other people that really needed a card, and due to large capacity of orders by the people who never intended to use their cards, there was a delay.

Using your Revolut card even for a week, you made this money back in savings.


#51

Edward,

You are very reasonable and I cannot disagree with you.

However, as I said in the other topic concerning the (not anymore fully) free first card, our friends to which we refer Revolut to are not equally reasonable.

I’ll bring you two real examples from my experience as “Revolut evangelist”.

Friend 1 ordered the card for free (fully). Was a bit skeptical but I convinced him to top-up the card and try it out in his recent trip to Barbado. After using the card, he was very happy about Revolut and will likely use it in the future. Friend 1 was keeping Revolut in his wallet and likely use it as well for other purchases at home in his home currency.
Friend 1 would have never subscribed to Revolut should he had to pay a fee for it.
Moreover, Friend 1 complained about the new Fair usage policy, lowering the withdrawal limit. Friend 1 said he will consider alternatives to Revolut. Friend 1 is not anymore carrying Revolut in his wallet on a daily basis. His Revolut card is now on his desk and he will only use it while travelling abroad.

Friend 2 was asked to pay the shipping costs of the first card. Friend 2 decided not to try Revolut.

Conclusion: while your arguments are reasonable and make sense, consumers tend to be irrational. The only rational ones are those who I would define Revolut Evangelists, like the people on this forum. Are you sure you also properly considered the average consumer and the marginal average consumer?


#52

Hmm, maybe something we could raise with the team for internal discussion is something to do with referrals: If you sign up using your friends referral code, maybe first card delivery could be free in this case. It still hopefully solves the problem of not sending cards to people who don’t want them, but also helps you guys evangelise to your friends in cases where they aren’t completely convinced?


#53

So why don’t they want to use their card? That question seems like the big picture question. Is there a lost opportunity?


#54

That could be an option. And then see in 3-6 months time whether referred people have sufficient retention rates to repay the cards. :slight_smile:


#55

They are “busy” people. Make them try a product, they’ll love it. Ask them to pay beforehand or make it “not too good” they’ll forget about it.


#56

Thank you for explaining the change in policy as I thought you just got charged a fixed fee per transaction. While like all of your customers I would like a higher limit I understand that cash withdrawals are a loss making transaction for the company. Thanks for your honestly


#57

Referral codes could work or maybe something along the lines of some other companies where you pay for the card (say £5) but you get that £5 back into your account when you top it up by £XX. That way the people who use it will be no worse off


#58

Thank you @Macca. That’s pretty interesting we’ll definitely share it with the team!

Thank you all of you for your ideas!


#59

Hello @edward (and everyone else),

I actually missed something, well 6€ more precisely :blush: The Revolut card has been once free. Gosh, why haven’t I heard of Revolut before N26…
And now, am I missing something interesting again? Singing up with a referral code would get me my first free Revolut card? I could have used a referral code. The world is so unfair :smile: :smile:


#60

Currently travelling long term in S America with my partner, both using Revolut as our main card for payments and withdrawals.

As most have said, there are many places where relying on card payments is just not feasible as the option often isn’t there, and being on the road means we are constantly paying out cash (travel / accommodation etc). This limit reduction from £1,000 per month to £400 between the 2 of us is a serious issue and I wish we had been aware it was likely to happen before we chose Revolut over other options.

Stuck with it now for another 3.5 months before we return to the UK, very disappointed in the abrupt way the change has been executed - having convinced a number of friends and fellow long-term travellers to sign up I will look elsewhere for my future travel financial solution.


#61

in no way is anyone prevented from withdrawals… everyone will just pay a fee for that


#62

@Eastonian Don’t panic…if you are an existing user (pre-December 5th 2016) then your ATM limits will still be £500 until February 5th 2017.

We always give existing users 3 months notice before changes like this so that they can modify their arrangements where appropriate.


#63

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