Worried about Revolut reports

[Glasgow trip]

I’ve seen a couple of press reports in the past couple of days saying that Revolut might lose their European banking licence over links with Russia.

I can’t tell if these are the same reports that have been circulating for a while - they don’t seem to be picked up widely. Consumer sites are still recommending Revolut.

What are people’s thoughts? Would it be safer to get a different pre paid card - and if so, which one? I was thinking either the Fairfx dollar card or Starling? (Not the Halifax clarity, because i don’t want a credit card)

Thanks all

[Boothy16]

Yea i am in same predicament i changed £500 to dollars in feb and got 1.33 due to the whole brexit thing which now been delayed i dont know wherever to pull my money out and go for another card. Like you said its a article in telegraph if it was that certain sure it will be on every news outlet

[alkel2730]

I’ve just read up on this. I’m not expert BUT apparently they only got the licence in Dec 2018 and it only affects bank accounts. It’s is completely outside of the prepaid card which has been going for years and is backed by Barclays in the uk. This latest news has no bearing on the prepaid cards. That’s what I read!

[Glasgow trip]

Originally Posted by alkel2730

I’ve just read up on this. I’m not expert BUT apparently they only got the licence in Dec 2018 and it only affects bank accounts. It’s is completely outside of the prepaid card which has been going for years and is backed by Barclays in the uk. This latest news has no bearing on the prepaid cards. That’s what I read!

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Thank you - that’s really helpful

[Rachhh]

Revolut are under investigation by the FCA for compliance issues, a lot of people have left due to customer service issues and so I’d recommend steering clear. Monzo and Starling are good alternatives.

I use Starling and have found the rates good all over the world and I’ve been happy with the service that they provide.

Starling and Monzo both have banking licenses and are covered by the deposit guarantee scheme in the UK, meaning your money is guaranteed up to about £85,000, should anything happen to the bank.

Please let me know if you have any more questions, I work in banking so it is my area of expertise

[alkel2730]

Originally Posted by Rachhh

Revolut are under investigation by the FCA for compliance issues, a lot of people have left due to customer service issues and so I’d recommend steering clear. Monzo and Starling are good alternatives.

I use Starling and have found the rates good all over the world and I’ve been happy with the service that they provide.

Starling and Monzo both have banking licenses and are covered by the deposit guarantee scheme in the UK, meaning your money is guaranteed up to about £85,000, should anything happen to the bank.

Please let me know if you have any more questions, I work in banking so it is my area of expertise

See more...

Hi there,

Welcome to the Dibb! Can you shed any light on what I posted above? I’ve read that on several sites that the latest news has zero bearing on the prepaid cards and this is purely to do with the bank accounts? If it does can you explain how please? I’ve used revolut since the first year it came out and will do again very soon so I’m interested/concerned to see if these reports are scaremongering considering the prepaid card only (this is what many people are saying)? Info for those of us who don’t have revolut bank accounts, just prepaid cards would be handy! Thank you and welcome again to the Dibb!

[Rachhh]

Originally Posted by alkel2730

Hi there,

Welcome to the Dibb! Can you shed any light on what I posted above? I’ve read that on several sites that the latest news has zero bearing on the prepaid cards and this is purely to do with the bank accounts? If it does can you explain how please? I’ve used revolut since the first year it came out and will do again very soon so I’m interested/concerned to see if these reports are scaremongering considering the prepaid card only (this is what many people are saying)? Info for those of us who don’t have revolut bank accounts, just prepaid cards would be handy! Thank you and welcome again to the Dibb!

See more...

Hi there, thank you for the welcome! I’ve been lurking for a while in preparation for my first solo trip on 1st June

This article sets the concerns about Revolut out in quite a clear way... can’t post a link it seems but google bbc article revolut and it’s the first result (with whistleblower in the title).

It seems to be run very poorly, with little regard for compliance. Things like this are usually the first little red flags that a company is heading towards difficulty.

With a prepaid card, rather than a bank account, the deposit guarantee scheme doesn’t cover the money you hold with revolut. Revolut do hold the money in ringfenced accounts at Lloyd’s, but should Revolut somehow fail to protect all the client money and there was a shortfall should they become insolvent, customers would become creditors and have to go through claiming their money back through administrators. This is a painful process and you might not get all of your money back.

I’d highly recommend getting a bank account with a company with a banking license over a prepaid card purely for the Deposit Guarantee Scheme coverage.

When there are 3 competitors offering a way to spend money abroad at no cost, I think it makes sense to rule out the one offering least protection for your money and showing signs of not being run properly and go for one of the other two, i.e. Starling or Monzo.

Do you have a particular reason for preferring a prepaid card over a bank account?

[Glasgow trip]

Hi Rachhh - could you explain how the FCA works in relation to the Revolut prepaid card? I thought that Revolut are licensed by the FCA, which meant that money on a card is protected and ringfenced. Is that less of a protection than the deposit scheme?


Also - welcome to the Dibb!

[alkel2730]

Originally Posted by Rachhh

Hi there, thank you for the welcome! I’ve been lurking for a while in preparation for my first solo trip on 1st June

This article sets the concerns about Revolut out in quite a clear way... can’t post a link it seems but google bbc article revolut and it’s the first result (with whistleblower in the title).

It seems to be run very poorly, with little regard for compliance. Things like this are usually the first little red flags that a company is heading towards difficulty.

With a prepaid card, rather than a bank account, the deposit guarantee scheme doesn’t cover the money you hold with revolut. Revolut do hold the money in ringfenced accounts at Lloyd’s, but should Revolut somehow fail to protect all the client money and there was a shortfall should they become insolvent, customers would become creditors and have to go through claiming their money back through administrators. This is a painful process and you might not get all of your money back.

I’d highly recommend getting a bank account with a company with a banking license over a prepaid card purely for the Deposit Guarantee Scheme coverage.

When there are 3 competitors offering a way to spend money abroad at no cost, I think it makes sense to rule out the one offering least protection for your money and showing signs of not being run properly and go for one of the other two, i.e. Starling or Monzo.

Do you have a particular reason for preferring a prepaid card over a bank account?

See more...

Thanks that’s handy, I’ll go google that article.

No not particularly aside from I don’t really want another account to have to worry about. I tidied up all my finances a few years ago and got it right down to two accounts so it’s easier to manage and I really don’t want another account to watch I’m very very time poor. Also my revolut is loaded as my trip is very soon which is why I’m watching this thread closely! Thanks for your advice.

[scottsman]

I’m not worried about the banking license, they operated for years without one and while the banking licence moves the towards a final goal right now it has no bearing on their core business, apparently it’s about some kind of link to Russia, I know they are applying for banking licences in other countries
The investigation by the fca is over claims they stopped doing money laundering check at one point, this was really poor practice but the end result will be little more than a fine again it has no impact on the core business.

All your money is stored in a ring fenced account I believe with Lloyd’s so your money is safe I’ve got about $1500 on my card and I’m not worried about my funds I’ve got a rate which I’m happy with and while all this in the background is unnerving you have no need to be worried.