Apple Card Extending 3% Daily Cash to More Merchants, Starting With Uber and Uber Eats

[Phone Junky]

You're choosing to make purchases before you pay them. Whether you have money at that point or not, makes little difference to how circumstances might change before you pay the bill, before which time you have no choice about paying it.

And no matter how my "circumstances might change" before the end of my billing cycle, I still have the money and the bill WILL get paid.
You keep talking about "circumstances changing". How would this be any different than you paying for your purchases right out of your bank account and that money is now gone, and then your circumstances change? We would both be in the exact same position. Only difference is the money is out of your account after each purchase and I pay it all at the end of the month. Same amount, different pay schedule.

You're delaying payment, assuming all will go well just to get 1% back. You'll probably pay more than you would have done.

You made the statement, explain how I'll probably pay more than I would have done?

[doublepost=1567378287][/doublepost]

Don't forget that he's completely missing that just because someone is using their debit/checking account doesn't mean they aren't spending what they don't have. In 2017, Americans paid $34 Billion in overdraft fees.

I guess those people shouldn't have a bank account. Ya know, in case their circumstances change.

 

[iScone]

And no matter how my "circumstances might change" before the end of my billing cycle, I still have the money and the bill WILL get paid.
You keep talking about "circumstances changing". How would this be any different than you paying for your purchases right out of your bank account and that money is now gone, and then your circumstances change? We would both be in the exact same position. Only difference is the money is out of your account after each purchase and I pay it all at the end of the month. Same amount, different pay schedule.

Is this a serious question? If you pay for costs at the time they're due, and circumstances later change, you can adapt to those changed circumstances without owing anything in the future. If you pay - even with the exact same money - you've committed yourself to a future spend, even if we started with the same funds. There is zero you can do about the bill that needs paying. I have zero bill to pay.

You made the statement, explain how I'll probably pay more than I would have done?

Read the links in my previous post. People who pay with plastic spend more. It's as simple as that.

 

[Nugget]

Is this a serious question? If you pay for costs at the time they're due, and circumstances later change, you can adapt to those changed circumstances without owing anything in the future. If you pay - even with the exact same money - you've committed yourself to a future spend, even if we started with the same funds. There is zero you can do about the bill that needs paying. I have zero bill to pay.

You're both paying your bills in the exact same way, the only difference is the time scale on the float. Your float is measured in hours, his float is measured in weeks. That's the only difference. There's no moral or practical difference between either approach.

Your way is a lot more effort and has the potential to depress your credit score. His way is less effort. Both ways require financial restraint.

My personal opinion is that someone who is afraid of float measured in weeks is demonstrating a lack of financial maturity. It shouldn't cause stress or concern to pay your bills monthly. Someone with stable finances will have no difficulty doing this. The fact that you seem to be terrified of waiting until the statement closes to pay the balance makes me think that you probably do not have very stable finances, which is why you're drawn to your technique. If your finances are so precarious that you can't reliably predict your situation three weeks from today, then yeah, you are probably better off paying your bill daily despite the downsides. It doesn't make you better or more responsible, it just means you're very, very cautious.

Read the links in my previous post. People who pay with plastic spend more. It's as simple as that.

Define "people." It sure doesn't include me.

 

[Phone Junky]

Read the links in my previous post. People who pay with plastic spend more. It's as simple as that.

And what exactly does this have to do with ME? After explaining repeatedly of how I use a credit card, you make up your own scenarios of me being like other people that overspend and get in trouble. For the last time, I do not spend money I don't have even though I use a credit card.

Somehow you can't wrap your head around the fact that NOT EVERYBODY fits into your perception of credit card users.

Do you base everything you do in your life around what other people do? Are you not able to think and act on your own or do you need a study to tell you what to do next?

 

[iScone]

And what exactly does this have to do with ME? After explaining repeatedly of how I use a credit card, you make up your own scenarios of me being like other people that overspend and get in trouble.

Because you're nothing special. You didn't get a credit card based on superhuman abilities, and you don't use it differently to the way anybody else does. The only thing that distinguishes you from the reason most people fall behind on their payments is that sh*t hasn't happened to you yet. You're commenting from a privileged position, and apparently little life experience.

I think you've prolonged this discussion long enough, and my point is well made. You feel you're above it all, and time will be your mistress. Enjoy them whips!

 

[Nugget]

The only thing that distinguishes you from the reason most people fall behind on their payments is that sh*t hasn't happened to you yet.

Just so I have this clear. You are arguing that 100% of people who have a credit card will eventually find themselves unable to pay their bill in full? It is a truly universal and unavoidable consequence of using a credit card? Nobody escapes this inevitable outcome?

 

[iScone]

Just so I have this clear. You are arguing that 100% of people who have a credit card will eventually find themselves unable to pay their bill in full? It is a truly universal and unavoidable consequence of using a credit card? Nobody escapes this inevitable outcome?

No, of course not. But unless you can predict the future, you don’t know if you’ll be among those people or not. The absolute best you can say is that you only pay for things with money you already have which means:

1/ You’re more responsible than the average person
2/ You’re contrary to everything we know about credit card holders based on the research
3/ You’d be in a stronger position without a credit card but seem entirely attached to a poultry 1% return, even though that return is negligible by your own admission

There is no argument that convince me having a credit card is a rational or financially sensible thing to own. That it comes with a little Apple logo makes no difference whatsoever.

I say again: enjoy your tiny cash back. Whether you’ve planned for it or not, at the end of the month - regardless of circumstance - I have one less bill than you.

 

[Nugget]

No, of course not. But unless you can predict the future, you don’t know if you’ll be among those people or not. The absolute best you can say is that you only pay for things with money you already have which means

This is false. I've had plenty of times in my life where I've encountered financial hardships, job loss, and huge unexpected expenses. I don't need to be able to predict the future. These things have happened to me in the past and I'm confident they will happen to me again in the future. Since I don't spend money I don't have it means that problems have never prevented me from paying my bills each month.

You’d be in a stronger position without a credit card but seem entirely attached to a poultry 1% return, even though that return is negligible by your own admission

Well this is patently false also. In a hardship, who is in a stronger position?

a) Person A with a $0 credit card balance and $100 in the bank.
b) Person B with a $100 credit card balance and $200 in the bank.

Person B has more flexibility for how they choose to proceed. They have more options. This translates to a stronger position.

I say again: enjoy your tiny cash back. Whether you’ve planned for it or not, at the end of the month - regardless of circumstance - I have one less bill than you.

You may think that many thousands of dollars of cash and travel benefits is "tiny." I sure don't. I've made a lot of money and enjoyed great benefits at absolutely zero cost or risk to me or my finances. Sounds sensible to me.

I know you're in Australia, so perhaps you aren't aware of the fact that in the United States (where I live) it's a lot riskier to use a debit card than it is to use a credit card. Consumer protections are significantly weaker and the potential for hardship and problems in the event of a stolen card number are much worse for a debit card. Debit cards are absolutely not a sensible choice here if you have the option of using a credit card. Maybe in Australia this is less true. Sometimes I've had merchants double-charge me, or over charge me. I've never been at risk of overdraft or bouncing my mortgage payment like I would have risked if I'd been using a debit card. Even if the bank later reimburses the funds, I definitely find it preferable to have never had the problem to begin with.

I have one less bill than you.

If it takes me 2 minutes to pay my credit card bill and I got (hypothetically) $20 cash back that month, that means that the credit card company is paying me $600/hour to pay my bill That seems like a generous wage to deal with the one extra bill each month.

 

[tmiw]

Consumer protections are significantly weaker and the potential for hardship and problems in the event of a stolen card number are much worse for a debit card. Debit cards are absolutely not a sensible choice here if you have the option of using a credit card.

FWIW, Regulation E in the US does provide some protection for debit cards. My understanding is that as long as it's not an "approved access device" (that is, the actual physical card wasn't used), cardholders are ultimately not liable. Even if someone did pick up your card off the street and used it, reporting it early enough does limit your maximum liability ($50 within 48 hours, for instance)--and most banks won't even try to collect on that.

That all said, it's still your money that's (temporarily) gone while they investigate, and since a lot of people live paycheck to paycheck, that can cause a bunch of problems. For that reason, having at least one credit card is a good idea if at all possible.

 

[Nugget]

. . .it's still your money that's (temporarily) gone while they investigate, and since a lot of people live paycheck to paycheck, that can cause a bunch of problems. For that reason, having at least one credit card is a good idea if at all possible.

This really is a key point. But beyond that, with a credit card you've got the weight of the Fair Credit Billing Act (FCBA) backing you up. With debit cards you just have Reg E which is markedly weaker. The protections required by law for credit cards are more in favor of the consumer than the protections required by law for debit cards. With a debit card you're placing your faith on the goodwill and responsiveness of your bank. I don't really like my bank that much, how about you?

 

[tmiw]

This really is a key point. But beyond that, with a credit card you've got the weight of the Fair Credit Billing Act (FCBA) backing you up. With debit cards you just have Reg E which is markedly weaker. The protections required by law for credit cards are more in favor of the consumer than the protections required by law for debit cards. With a debit card you're placing your faith on the goodwill and responsiveness of your bank. I don't really like my bank that much, how about you?

With something like 10,000 banks and credit unions to choose from, there's no reason not to choose one you're okay with trusting.

Really, though, I think it'd be a lot less of an issue if there was some actual security. Like, PIN/biometrics always required for in-person transactions and 2FA for online ones. As it is, there's basically none regardless of the kind of card (unless you're lucky enough to be able to use Apple Pay for everything).

 

[buknit]

I got approved last august for a 4.8k limit with an APR of 23.99%. I'm still new here in the US.

 

[OCS12]

If it takes me 2 minutes to pay my credit card bill and I got (hypothetically) $20 cash back that month, that means that the credit card company is paying me $600/hour to pay my bill That seems like a generous wage to deal with the one extra bill each month.

I'm with you on this one. All my credit cards are strictly cash back cards. With the exception of the Amazon card where I use the money on Amazon, I just let all my other rewards build up until I find something fun I want. I paid zero dollars in interest during that time.

Today an Iphone 11 Pro and S5 watch are being delivered, paid for entirely with cash back rewards. I think that was worth the ten minutes or so it took to transfer all the rewards cash to my checking account, then use my checking account to pay off my Apple credit card that I bought the phone and watch with. Oh, and I earned another $43.32 of cash back on the Apple Card! I sure do hate that my horribly irresponsible financial planning is getting me a free phone and free watch today.

 

[Phone Junky]

The only thing that distinguishes you from the reason most people fall behind on their payments is that sh*t hasn't happened to you yet. You're commenting from a privileged position, and apparently little life experience.

I think you've prolonged this discussion long enough, and my point is well made. You feel you're above it all, and time will be your mistress. Enjoy them whips!

You're right, I have very little life experience. My only experience is keeping myself in a good place financially. Buying a house with a 30 year mortgage. Refinancing that to a 15 year when the time was right. Paying that mortgage off early. All while carrying NO CREDIT CARD BALANCE even though I use them. This is not from a "privileged position". This is from a almost 60 year old responsible adult position. If and when this so-called hardship hits me, the money that may be on a card at the time will be in my bank account to pay the bill. Hardships hit the guy that put the $5000 new computer on their card and don't have the money to back it up, not the guy just buying his everyday needs.

 

[Skoal]

I know its fun to bag on Uber but on my last vacation Uber was invaluable - Uber (or a service like it) its indispensable IMO.

Uber supposedly has a card that’s supposed to be pretty darn good for things like dining, , hotels, car rentals, travel, and airfare.

 

[Tech198]

Now, Apple has started a trend... Competition..

Who can give you the best % 'deals' off Apple card where it's available.