Blog
20. January 2020

Why neon does not charge you for card payments abroad

Getting an overview of all the different fees and charges can be super time consuming. Especially since some of them are hidden quite well. That's why we’ve been committed to a simple pricing model right from the start. 

And you have told and shown us: it's good, but not good enough. To pay so much in fees while abroad is just not ok anymore. Card payments and cash withdrawals mean additional fees and surcharges every time. Now we have good news for you: as of January 2020, all card payments abroad are as easy as at home, completely free of charge. And for withdrawals we have reduced the fee to 1.5%. In both cases you benefit from the best exchange rate - namely the Mastercard reference rate without any surcharge.

Where do we stand in comparison to others?

Source: moneyland.ch

As you can see, with the new pricing scheme we are on par with foreign neobanks like Revolut or N26 in terms of price. And thus overtake the traditional banks in Switzerland. But take a look for yourself - the independent comparison portal moneyland.ch has examined the best cards in Switzerland and detailed the exchange rate surcharges and transaction fees.

Source: moneyland.ch

So what does neon cost now?

Pay with your neon Mastercard®, no matter where, and we do not charge any fees.

For cash withdrawals you only pay in Switzerland if you withdraw more than twice a month (2 CHF). You can withdraw a maximum of 1,000 CHF per withdrawal, so up to 2,000 CHF is free. Abroad, you always pay 1.5%, without any additional charges - you get the Mastercard reference course. And that's it. This also makes us cheaper than traditional banks when it comes to withdrawing money. You will find everything listed in detail in our price list

Are there any exceptions?

Yes and no. Not from our side. We do not charge any fees for card payments abroad. However, depending on the merchant or ATM operator, they may charge fees or exchange rate surcharges. This applies to all cards, not just ours, of course.

You can avoid foreign exchange rate surcharges if you pay abroad in the local currency (not CHF). This is also the case online, so we recommend paying in CHF only in Swiss shops.

When withdrawing money, it's exactly the same – always pay in the local currency. You can usually avoid fixed charges by withdrawing money from an ATM at a major bank. Here are more tips for withdrawing money abroad

Is this just another price reduction sham?

We all know it - a drink or a bag of crisps gets a tiny bit cheaper, and then you find out that it now has 30% less content. So what do you lose with us? Well, nothing. Of course, like any Swiss account, we continue to offer you Swiss Deposit Insurance (up to CHF 100,000) and store all your data exclusively in Switzerland. Our customer service remains as it is.

No, it is simply a business decision. You have shown us that you know very well that there were cheaper cards available. So we’ve gone over the books again. And found that we can afford the price reduction because the neon community is growing and because you will use the card everywhere. Then we can make up for it in volume.

How can we offer such good prices?

Well, in the past these high fees were reasonable - there was a lot of work for the banks. Today, with digitalisation, most of that is no longer necessary. We have decided to pass this on to you. Of course, this is also easier for us, because we only have one core business, the private account. And we are only digital. We are a team of 20 people and our infrastructure is limited to two offices. So the costs we have to cover are much smaller. (Oh, and with us, nobody gets CHF 12.65 million or 14.1 million per year).

Now - questions? Write to us. Otherwise, if not now, when? Make neon your favourite colour.

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