Monzo customers will now be charged 3pc for overseas cash withdrawals after years of being able to do so for free.
Early adopters of the banking app have been able to take money out abroad without a fee since 2015, but now the rules have changed.
Users can upgrade their account on the app free of charge and can then take out £200 for free from ATMs outside the UK in multiple withdrawals within a 30-day rolling period. After that a 3pc fee applies.
On Monzo's prepaid card the same rules apply to cash withdrawn in foreign currency. This would apply to euros taken out of an ATM in Heathrow airport, for example.
- Reader Offer: Save on expensive international ATM fees with Telegraph international money transfers
In September Monzo said the free withdrawals were "unsustainable" and it would have to start "exploring charges", on which it asked its 400,000 users for feedback.
Customers will still not be charged on holiday spend when they use they card, and online transactions are also free. Monzo passes on the same exchange rate as Mastercard with no markup.
Can Monzo be beaten on ATM fees?
Monzo's offering is still decent but if you want cheap cash withdrawals on holiday you can do better.
Starling, another mobile-only bank, doesn't charge users who want to get cash out on holiday. It uses Mastercard's exchange rate and doesn't mark it up.
There is no loading fee nor do you have to pay for the card, which is the case with some banking apps.
Metro Bank customers can use their card abroad for free for both withdrawals and spend - but only in Europe.
Those travelling further afield are charged a 2.75pc markup on the exchange rate plus £1.50 to get cash out of the ATM. So if you withdrew £100 from a machine you'd end up paying £104.25.
If you buy things with your Metro Bank card outside Europe you'll be charged the 2.75pc fee. So £100 spend will cost you £102.75.
Rival banking app Revolut offers limited cash withdrawals without charge.
Like Monzo, you can withdraw the first £200 or €200 from an overseas cash machine for free each month, but after that you'll need to pay 2pc. This is the equivalent of £3 for a £100 withdrawal. You also have to pay £5 for the card to be delivered and £5 for a replacement.
Those with Virgin Money's Essential current account are charged £1.50 each time they want to withdraw cash abroad.