But if it was a properly formed subsidiary, the Apple mothership wouldn’t come under regulation. They could even do an essentially fully separate company (like FileMaker) to keep things well delineated, but would still have final say in what to do.
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Apple Ending Apple Card Partnership With Goldman Sachs
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Most auto manufacturers (US, Japanese and German) have built the own financing arms, including loans, credit cards and “savings” account (I used to have a GMAC demand note account myself). If they were able to get it to work, I’m sure Apple could if they wanted to.
Then this is definitely what Apple should do, plus provides the least amount of resistance. All then that they would have to do is work directly with the CC company and who they want to use to process the transactions. In fact, I think that the biggest resistance they would have with this idea would be the AAPL shareholders. They would be completely shut out of any profits made from this, as those profits would go back to the members (customers) who apply for the card or are currently cardholders, as they should be able to transfer into this institution.
BL.
Curious about all the negative comments about Synchrony. Why are they awful?
Reading through these replies have got me thinking that maybe Apple should Think Different again and own the whole widget.
The executives at Apple likely see a future where they have their controls in every room of your house, in every vehicle you own, and in your wallet.
They'll still claim that they're all for privacy.
Dude, you are stuck back in the 80s! I love my Apple Card and Apple Savings account! Do you have an Android phone? 🤣
Like the Apple Card, Goldman Sachs is also the issuing bank for the GM card but is looking to sell it.
Ford Motor Company's credit cards (FordPass Rewards Visa card and Lincoln Access Rewards Visa) and FCA's various Mastercard credit cards are issued by First National Bank of Omaha.
There was a credit forum I used to frequent and Synchrony closing accounts out of the blue common place. I mean some people would lose several accounts all at once with no explanation. I have enough credit cards from reputable banks that I don’t need a fickle lender like that.
AMEX in the USA is not often accepted, either (because of, I presume, their ++ fees).
TANSTAAFL rears its ugly head.
Bass Pro Shop and B Js Warehouse Club both use CapitolOne. Good Sam Club uses Comenity. Either of them would be good choices.
I have a Synchrony Bank (Sam's Club) card, but haven't used it since I called the membership when we moved away from the Sam's Club. I expect them to close it for inactivity.
I had a Living Spaces (furniture store) card. Made two furniture purchases and never used it again. Paid everything off in a year and a half. One day last year my credit score dropped 25 points. Synchrony closed my account with no notice.
Surely the sales tax was not so much that you would've gotten rich off the 3%?!?
Not to deprecate the physical aspect . . . it always seemed silly (to me) that I received a physical card for a primarily virtual construct.
Shiny, though
barklaycardus closed my account a few years ago (no activity; no balance; communicated in an appropriately/timely manner).
I let it happen, and I appreciate the tombstone that now resides in a corner-desk-drawer.
Keep in mind that during that time they were making hardware and software, they:
- lost the desktop battle to IBM, Acer, Dell, Gateway, HP, and others;
- lost the OS wars to Microsoft;
- Never even had a chance in the browser war that had been going on since those OS wars started;
- fired their CEO who went to start another OS company and majorly participate in (yep, you guessed it!!) A MOVIE STUDIO; and
- had their stock drop to $.99/share, and almost was dropped by NYSE/NASDAQ.
Surely the sales tax was not so much that you would've gotten rich off the 3%?!?
Not to deprecate the physical aspect . . . it always seemed silly (to me) that I received a physical card for a primarily virtual construct.
Shiny, though
No.. but comparing between getting double digits back to getting nothing back, I'd take the double digits. That's gas money for the week and 8 rolls of sushi! 😁
BL.
I have a couple of cards (USAA Visa and PenFed Visa) that send me an E-Mail or letter a couple months before the card expires with much fancier, and more polite words saying, "use it or lose it". I can see why banks would have an interest in closing unused accounts, but they should be classy about it.
"Job opening hints at Brazilian fintech replacing Goldman Sachs as Apple Card issuer"
A fintech might replace Goldman Sachs as Apple Card issuer
A recent report from The Wall Street Journal revealed that Apple and Goldman Sachs are ending the partnership they made...
9to5mac.com
What will be interesting is how the other banks, that were interested during the initial negotiations for Apple Card, respond now that the cat is out of the bag. Many of GS's customer service problems were because Apple dictated how they handled customer service. For example, as time when on, the Apple Technical Support approach became more and more problematic. Apple insisted the first level staff (Tier 1, Apple Card Specialists, equivalent to Apple Support Specialists) only have access to what you see in your wallet, the second level staff (Tier 2, Apple Card Supervisors, equivalent to Apple Support Senior Advisors) only have access to basic transaction details but be able to collect additional information to send (aka, RTA) to the third level (Tier 3, Apple Card Managers, equivalent to Apple Support Engineering), who had full access like customer support has at every other consumer bank. Apple's insistence on using their technical support model for banking support is not sustainable - it leads to delays and misinformation, which is very problematic when it comes to financial regulation.
Apple Card has been nice, but not sure how someone that appreciates Apple’s hardware and software is automatically someone that would have an Android phone just because they feel Apple is spread across too many verticals. It’s a valid and fair point of view. Not everyone has to agree.
And GS general attitude to customers with less than $10M in equity has nothing to do with it.
Apple got a sweetheart deal from Goldman because the latter was desperate to break into the consumer market. I’m guessing Apple will be more realistic with its next partner. The biggest issue is the losses from issuing cards to those with bad credit. Apple will need to absorb more of those in order to get another bank to partner with them.
Dealing with clients with poor credit and debt collection is something synchrony bank appears to be skilled at. Although the might be discouraging to many MR members based on comments in this thread
Chase Sapphire Preferred is one card that I kind of got in the last month and half..