While Tuxedo has been a name in finance for around a decade, it only recently entered the field of challenger banking. Tuxedo has similar aims to other next-gen banks, to make money accessible and easy to manage, but defines itself through its fairly unique approach.
What is Tuxedo?
Unlike other challenger banks, Tuxedo doesn’t run through an app on your smartphone. Instead you manage your money and account either online or through text messages. While Tuxedo doesn’t offer your average current or savings accounts, it does provide a prepaid card which it describes as “ideal” for situations both at home and abroad.
Working as a money management tool and a travelling companion, Tuxedo’s prepaid cards are a simple and effective way of staying in control of your finances.
How does Tuxedo work?
Rather than opening a brand new bank account, Tuxedo offers a prepaid card to load money onto for day-to-day spending. The benefits come from the control you have over the amounts you load on, and the competitive exchange rates when you use the card abroad.
Tuxedo works through your internet browser or through SMS messages. By sending text messages to an easy-to-remember number you can issue instructions to:
Deposit or transfer money.
Check your balance.
Request a statement.
Activate or deactivate your Tuxedo card.
Report your card lost or stolen.
Using Tuxedo abroad
Tuxedo’s pay monthly prepaid card is perfect for travelling. Not only can you make payments with no extra charges, Tuxedo’s currency exchange rates are incredibly competitive, and the card works almost anywhere.
You can also use the pay as you go card abroad and benefit from competitive exchange rates, but fees apply when spending and withdrawing cash on the card.
Tuxedo fees and limits
Tuxedo offers a monthly subscription or a pay as you go card plan.
Both cards have fees and charges for certain functions, but Tuxedo tries to counter these with competitive exchange rates and fees while abroad:
There is a purchasing payment of £9.95 for both the monthly and PAYG card, with a second card costing £4.99.
Payments at the Post Office have a charge of 99p, with a limit of £250 on deposits.
PayPoint deposits are capped at £249, with a 3% charge.
Bank transfers are free.
Debit card top-ups are free, credit card deposits have 3% charge. Both have a maximum payment limit of £750 per day.
The subscription based card costs £4.99 per month, but with fees and charges costing much less, with regular usage it ends up cheaper than the PAYG card.
UK and overseas purchases are completely free with a pay monthly card. There’s a 2.95% charge on transactions on pay as you go.
ATM withdrawals cost 50p. PAYG withdrawals come a with a 1.5% charge.
Overseas ATM withdrawals cost £2.25 on both cards.
There are a number of other fees for SMS account management, alerts and administrative services. These can be found here.
Is Tuxedo safe?
Tuxedo takes security seriously; one of the benefits of not being available through an app is your Tuxedo account will not be compromised if your phone is lost or stolen, and if you do lose your card or details you can send a text, go online or call customer service to immediately deactivate your account.
Your money and card details are kept securely behind a password, and you are required to register with documentation to verify your identity.
Pros and cons of Tuxedo
Pros
The card can be used almost anywhere in the world.
Competitive exchange rates on transactions and withdrawals.
You decide how much money is on your prepaid card, making it great for budgeting.
No extra transaction fees when you spend money overseas on the monthly card.
No credit checks.
Safe and secure.
Cons
No smartphone app.
A number of fees and charges on even basic banking functions, especially when on a PAYG tariff.
Must pay monthly to avoid pricey charges.
To use mobile functions you need to memorise or carry a list of commands.
Dormancy fee of £2 applies.
Customer service information for Tuxedo
Email support
Telephone support
In-app or live chat
Contact form
Branch support
Alternatives to Tuxedo
Monzo
Monzo is one of the more popular branchless bank accounts available in the UK these days.
Customers are free to apply for an overdraft of up to £3,000 with their account. There are no extra charges for using your Monzo debit card overseas, plus you can make fee-free withdrawals up to a set limit when abroad.
The Monzo app provides a ton of useful budgeting options to help you manage your money better.
For a monthly fee, you can access premium features such as account aggregation, a credit checking service and cashback on certain purchases.
Revolut
The Revolut prepaid card is one of the best to use if you’re frequently making international money transfers. In fact, you’ll pay no extra fees for making these, or for using your prepaid card overseas.
The Revolut app is stacked with budgeting features, plus you can use it to trade stocks, cryptocurrency or to buy gold.
A Revolut Standard account is free of charge (but is subject to additional fees). Revolut has other fee-charging plans including Plus, Premium, Metal and Ultra.
Starling Bank
Starling Bank is another mobile-only bank, which you can manage through a mobile app. It focuses on being useful for customers who are frequently spending, sending or withdrawing money abroad.
When you switch to Starling Bank, you can open separate accounts for euros and pounds.
You’ll pay nothing to use your debit card overseas and you’ll be able to withdraw up to £300 a day overseas with no charges.
Monese
Monese is another account which is easy to set up and beneficial to use overseas. It prides itself on providing some of the best rates for international money transfers. There are also some generous limits on fee-free international purchases and ATM withdrawals with a Monese debit card.
A Monese Simple account is free of charge (but is subject to additional fees). The Classic account costs £7.95 a month and charges a 0.5% fee on foreign transactions. ATM withdrawals are free of charge up to £500 a month. The Premium plan costs £14.95 a month and offers unlimited fee-free foreign transactions and free ATM withdrawals up to £1,500 a month.
Everything is managed via the Monese smartphone app. The app also includes budgeting tools, transaction details and downloadable statements.
The verdict: Is a prepaid card from Tuxedo worth it?
Tuxedo’s prepaid cards won’t be for everyone, but they might be worth considering if you’re a frequent traveller – especially the pay monthly card. However, there are more competitive cards out there.
Frequently asked questions
Tuxedo makes money through three main revenue streams:
Fees and commissions: Tuxedo charges for services on your card and for text messages you send them. Opening an account and ordering a card also costs an initial fee that helps keep Tuxedo in business.
Interchange income: Tuxedo charges every time you withdraw or transfer money.
Simple. Either transfer money from your bank account or head to a Post Office or PayPoint to deposit money manually. You may also be able to use your debit card to load funds onto your card.
A prepaid card looks and feels exactly as a normal card does. The key difference, though, is that on a prepaid card you only spend what you load, rather than spending money and paying it off later as with a standard credit card. Once the Tuxedo card has been set up and money loaded on, it can be used in store, online and to make ATM withdrawals. There’s no overdraft facility.
Yes, the Tuxedo card can be used anywhere in the world as it’s provided by Mastercard. So, if in doubt just look for the Mastercard acceptance logo.
No, Tuxedo doesn’t perform any kind of credit check, meaning that applying for a card will leave no effect on your credit score.
If your card is stolen or misplaced, you should let Tuxedo know as soon as you can. You can do this this by calling 0845 241 4278.
You can also temporarily freeze your card by texting BLOCK XXXX to 807777, though you’ll only be able to do this if you’ve already registered your mobile number with Tuxedo. You can unblock it by texting UNBLOCK XXXX to the same number. Each text costs 20p.
The simplest way to get in touch with Tuxedo is via email. It can be reached at customercare@tuxedo-eccount.com
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Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
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