Apple Card

Apple Card is a credit card created by Apple Inc. and issued by Goldman Sachs, designed primarily to be used with Apple Pay on Apple devices such as an iPhone, iPad, Apple Watch, or Mac.[1][2]

Apple Card
Apple Card within the Wallet app in iOS 12 on an iPhone XS
LocationUnited States
LaunchedAugust 20, 2019
Technology
Operator
Websiteapple.com/apple-card

History

On August 6, 2019, invitations to an early preview started being sent to randomly selected users who had previously signed up for email notifications ahead of Apple Card's official launch.[3] It was released in the United States on August 20, 2019.[4] Additional cardholders and joint accounts are not supported.[5]

Apple Card was announced at an Apple Special Event on March 25, 2019. Unlike previous special events which have historically served as platforms to announce upcoming hardware, this event focused on new internet software and services. Other services announced at the event include Apple TV+, Apple News+, and Apple Arcade.[6][7]

Enrollment

Instant issuance

Users can apply for an Apple Card directly from within the Wallet app.[8][9] Upon approval, a digital Apple Card is made available immediately on all of the user's devices. Users also can order a physical card for use at locations that do not accept contactless payments.[10]

The physical card does not display numbers on the front; instead, users receive a 16-digit virtual card number for websites and apps that do not accept Apple Pay.[11] Apple Card details are accessible in the user's iCloud Keychain and can be auto-filled into online forms.[12]

Titanium card

Apple has designed a titanium Apple Card for shopping at locations where Apple Pay contactless payment is not accepted.[13] The logos on the card are engraved, and the cardholder's name is laser-etched onto the card.[14][15] The card has no card number, CVV security code, expiration date, or signature printed on the card.[13]

On delivery, users with the iPhone XS and above can activate the physical card by moving their phone near a NFC tag concealed within the card's packaging.[16] Users with an iPhone X or earlier need to open the Wallet app before tapping the phone against the card.[17]

Features

Cashback

Regular purchases made using the physical card earn 1%, purchases made with Apple Pay earn 2%, and purchases on Apple's stores earn 3%. Cashback on eligible purchases is deposited into the customer's Apple Cash account or applied as a statement credit.[18][19][20]

Fees

Apple Card does not charge late, foreign transaction, returned payment, or annual credit card fees, but it does generate interest fees when carrying a balance and interchange fees charged to the vendor.[21][9]

Card management

The Wallet app collates Apple Card transactions by category and provides weekly and monthly activity summaries.[13] Apple Maps is used to provide a colour-coded category, map location, and contact details for the merchant (where available).[22]

Privacy and security
Main article: Apple Pay

A unique card number is created for each device and is stored in a secure element which is used by Apple Pay to handle transactions and on-device cryptographic functions. Each transaction uses its own one-time dynamic security code and is authorized with Face ID, Touch ID,[23] or passcode.[24]

As with Apple Cash, transaction history for Apple Card is stored on and synced across devices using iCloud and encrypted such that only the authorized account holder can view it.[25] Two-factor authentication must be enabled on the user's Apple ID account in order to apply for Apple Card.[5][26]

Partnerships

For Apple Card's initial US launch, Goldman Sachs assumed the role of the issuing bank,[27][2][26][28][29] while Mastercard served as the payment network.[30]

Reception

According to Ron Shevlin of banking consultancy Cornerstone Advisors, as of March 2020, about 3.1 million Americans hold the Apple Card. Six in ten Apple Card users use it as their primary credit card.[31][32]

On October 1, 2019, MarketWatch published an article stating that Goldman Sachs is not reporting payments to the credit reporting agencies.[33] The article suggests that Apple and Goldman Sachs rushed development of the card, and that the companies would fix the issue over time.

On November 7, 2019, David Heinemeier Hansson posted on Twitter that he was given 20 times the credit limit than was offered his wife despite her having a better credit score. He accused Goldman Sachs of gender discrimination by using algorithms to determine a person's credit limit.[34] Apple's co-founder Steve Wozniak also tweeted that he received ten times the credit limit that his wife was offered.[35] In response to Hansson's tweets, the New York State Department of Financial Services launched an investigation into Goldman Sachs's practices.[34]

References
  1. "Apple Pay is compatible with these devices". Apple. August 12, 2019. Retrieved August 22, 2019.
  2. "How to use Apple Card". Apple. August 20, 2019. Retrieved August 22, 2019.
  3. Patel, Nilay (August 6, 2019). "The Apple Card starts rolling out today". The Verge. Retrieved August 20, 2019.
  4. "Apple Card launches today for all US customers" (Press release). Apple. Retrieved August 20, 2019.
  5. Panzarino, Matthew (March 28, 2019). "How Apple Card works". TechCrunch. Retrieved April 8, 2019.
  6. Arkin, Daniel (March 25, 2019). "Apple event: TV, news and video game services signal new direction for iPhone maker". NBC News. Retrieved March 26, 2019.
  7. Kleinman, Zoe (March 25, 2019). "Apple debuts own credit card and TV shows". BBC News Online. Retrieved March 25, 2019.
  8. "How to apply for Apple Card". Apple.
  9. Son, Hugh (March 25, 2019). "Apple unveils new credit-card: the Apple Card". CNBC. Retrieved March 25, 2019.
  10. Leskin, Paige. "Here's when the new titanium Apple Card will be available, and how you can sign up". Business Insider. Retrieved April 7, 2020.
  11. Haselton, Todd (August 15, 2019). "The Apple Card has no numbers on it — here's how to find them to buy stuff online". CNBC. Retrieved April 7, 2020.
  12. Delfino, Devon. "How to set up autofill on a Mac computer in Safari, so you don't have to type in your information each time". Business Insider. Retrieved April 7, 2020.
  13. "Introducing Apple Card, a new kind of credit card created by Apple" (Press release). Apple. March 25, 2019. Retrieved March 26, 2019.
  14. "Apple introduces its own credit card, the Apple Card". Retrieved January 28, 2020.
  15. "About the titanium Apple Card". Apple. Retrieved January 28, 2020.
  16. Rambo, Guilherme (March 27, 2019). "Here's how the physical Apple Card will be activated on iOS [U]". 9to5Mac. Retrieved July 18, 2019.
  17. "Request and use your titanium Apple Card". Apple. Retrieved August 20, 2019.
  18. "Daily Cash with Apple Card". Apple.
  19. White, Alexandria (August 15, 2019). "Here's how the Apple Card's 'Daily Cash' works". CNBC. Retrieved April 7, 2020.
  20. McCann, John (March 25, 2019). "Apple Card launches as a new type of credit card on your iPhone". TechRadar. Retrieved March 27, 2019.
  21. "Apple Card Review".
  22. "Apple Card - How It Works". Apple. Retrieved July 18, 2019.
  23. Matsakis, Louise (March 25, 2019). "Apple Enters the Credit Card Market With—Yep—Apple Card". Wired. Retrieved March 26, 2019.
  24. "Apple Pay security and privacy overview". Apple. July 12, 2019. Retrieved August 21, 2019.
  25. Detrixhe, John (March 25, 2019). "The most original thing about Apple's credit card isn't its app, fees, or laser-etched titanium". Quartz. Retrieved March 26, 2019.
  26. "How your Apple Card application is evaluated". Apple. August 20, 2019. Retrieved August 22, 2019.
  27. "Report: Goldman Sachs spending $350 to acquire each new Apple Card user, could see losses in a recession". 9to5Mac. August 14, 2019. Retrieved August 22, 2019.
  28. "Apple and Goldman Sachs launch their credit card". The Economist. Retrieved August 22, 2019.
  29. Statt, Nick (August 21, 2019). "Apple warns you may permanently discolor your Apple Card if it's stored in leather". The Verge. Retrieved August 22, 2019.
  30. Griffin, Andrew (March 25, 2019). "Apple just released a stunning new credit card". The Independent. Retrieved March 25, 2019.
  31. Shevlin, Ron (March 9, 2020). "If Tim Cook Won't Tell The World How The Apple Card Is Doing, I Will". Forbes. Retrieved March 12, 2020.
  32. "Banking News from Cornerstone Advisors | Quotes in industry publications". Cornerstone Advisors. Archived from the original on March 12, 2020. Retrieved March 12, 2020.
  33. Passy, Jacob. "Apple and Goldman Sachs don't report Apple Card information to credit bureaus". MarketWatch. Retrieved January 24, 2020.
  34. Raina, Mekhla; Dilts, Elizabeth (November 9, 2019). "Goldman faces probe after entrepreneur slams Apple Card algorithm in tweets". Reuters. Retrieved November 10, 2019.
  35. Meek, Andy (November 10, 2019). "Steve Wozniak joins critics who think Apple Card algorithm might have a major flaw – gender bias". BGR. Retrieved November 10, 2019.
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