Overreaction, in relation to the actual raising of the issue (Feeling slighted due to the labelling of the monthly usage cap as ‘fair’.), and not your examples.
In both commercial and business-to-consumer relations, the contract will typically set out the extent of the obligations and services proffered.
The zero-fee cap for ATM withdrawals has been set out, and any further withdrawals beyond that is subject to fees.
‘Fair usage’ is used to designate the zero-fee cap, but it does not necessarily mean that any further withdrawals is ‘unfair’.
It would be fair therefore to pass on the fees in the case of further withdrawals (due to the cost of providing ATM withdrawal services due to the fees charged by the ATM providers.).
They choose to subsidise it because it is a relatively essential feature for any retail bank. But at the same time, caps have to be made (and fees will have to be passed on for any excessive use.) in order to allow the business to maintain an adequate level of service for every customer.
Terms and conditions for contractual relations are altered from time to time. e.g. The pop-up in the iOS App Store requesting your agreement to the latest T&Cs.
Fair point.
ATM withdrawal is not a card that ‘could not be used to withdraw cash’. There are monthly usage limits, but it would be a significant exaggeration to categorise a card that cannot be used with the ATM.
http://public.brighttalk.com/resource/core/143701/revolut-general-business_pdf_version_262035.pdf
A business is not a charity. Much like how it is within the customer’s power to move providers, a business is not mandated by any regulatory authority or the state to provide services at a significant loss.
Revolut appears to have deemed ATM withdrawal an essential feature, but at the same time, to prevent excessive costs spiraling, a cap has been instated for zero-fee withdrawals.
Further withdrawals is possible, but it will be attached to the requisite fee.
If you look at the terms & conditions of every major successful consumer-facing enterprise, there will tend to be limitations on what a customer can and cannot do.
Such limitations will include excessive usage that may lead to significant costs or damage to the network.
OneDrive’s a fun example. A small demographic using 75 TB of storage.
There is a difference between smart losses, and unwise losses. The former as investment or for marketing purposes, and the latter, causing damage to the financial position of the company.
Offering unlimited usage with no limitations, in any business, is not a good idea in any industry.
A section of users overutilising a capital intensive part of the business would prevent the business from making further investments or spending money on marketing and expansion.
Amazon was public when they were able to offer programmes such as Prime, which significantly subsidises the cost of shipping.
Bezos made a decent amount of money whilst at D. E. Shaw, but I’m sceptical that he would have fancied utilising all his capital for a small section of his customers (rather than reaching a significantly larger user base.).
Whilst we’re on Amazon, even at Amazon, ‘unlimited’ is not without restrictions.
Revolut is not a traditional (UK) retail bank, where they are allowed to use customer money and allocate that for business loans.
This is analogous of a trust law relationship, rather than a principal–agent relationship.
The aim is to prevent costs spinning out of control due to excessive usage of a capital intensive feature.
The zero-fee monthly cap is a balancing act: On the one hand, the ATM service can be used by customers. On the other hand, to ensure that this service provision does not result in a black hole in the balance sheet, any further usage above the cap will lead to a fee being passed on.
The global financial regulation regime does not see too kindly to banks selling the data and details of customers to third-parties.
Location of a financial services business in London is an advantage, mainly due to the advantages of London. As one of the three international financial capitals of the world, the surrounding ecosystem (Corporate lawyers, accounting firms, management consultants, other financial services institutions, close proximity to the regulators, …) is advantageous.
Even then, the ‘saved’ money on rent from decamping to Durham still would not cover the unlimited provisions of fee-free ATM withdrawals to every single user.