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Citigroup Reportedly Passed on Apple Card Due to Profitability Concerns
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The card isn't out yet, how were people declined?
The card is not available to the public yet. As of today no one outside Apple has been approved or declined.
The rewards on this card are mediocre at best. As noted, they should've done 2% across the board on all transactions. But I may be interested in this for card for security purposes. Since there is no physical number I am interested if it generates a new number for every online purchase that can't accept Apple pay. If so I may get it.
I assume the sign up period has not started yet? I don't see it in Wallet.
Does this card have any benefits as other cards do, like extended warranty, shopper protection, product protection, etc? Is there a place to look at the card benefits?
It'd be hard to give up the Citi Costco card that gives an extra 2 years warranty!
Does this card have any benefits as other cards do, like extended warranty, shopper protection, product protection, etc? Is there a place to look at the card benefits?
It'd be hard to give up the Citi Costco card that gives an extra 2 years warranty!
Exactly. The profit margins on this is lower but should bring more consumers to use it. They’re not banking on getting their profits from late fees and high interest but a lot of small fees from a lot of transactions. Banks don’t want to take that risk.
Similar how Blockbuster didn’t want to risk getting into that new internet craze a few years ago.
I read the T&C's of the Apple Card.
This is how it measures for my financial use case:
Not to say that the Apple Card is a bad deal at all -- not at all, esp. for those just ramping their credit. But for my use case it just does not make the grade, on the state-tax region where I live.
[Credit-rating score, whatever it is, is not an issue, to me. And, I always pay 100% of the accrued 30-day debit. So, interest charges are a don't care.]
This is how it measures for my financial use case:
- 3% on purchases on Apple, brick-and-mortar or website. [My 100% Con: Apple charges state taxes (6% on my region) so my incentive is to tailor significant Apple product purchase from B&H (no tax, no shipping charge).]
- 2% on purchases with Apple Pay (website or brick-and-mortar). [My Partial Con: Never tend to use Apple Pay, because my Costco Exec-level City card (4%,3%,2%,1%) remains as my go-to card, and Costco will not accept AppleCard (MasterCard not accepted).]
- 1% else, everywhere. [See item 2 above.]
Not to say that the Apple Card is a bad deal at all -- not at all, esp. for those just ramping their credit. But for my use case it just does not make the grade, on the state-tax region where I live.
[Credit-rating score, whatever it is, is not an issue, to me. And, I always pay 100% of the accrued 30-day debit. So, interest charges are a don't care.]
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Not sure I agree with you there - a couple, maybe (most notably Germany), but I travel extensively through Europe and rarely need or use cash and most places seem to assume payment will be by card.
Costco does accept Apple Pay (did you miss all of those Costco announcement posts a few months back?). They won’t accept the Apple Card though because it is a MasterCard.
Does anyone else find this whole thing humorous?
Like these bands are not all working together?
I still find it utterly bizarre that Apple is launching a credit card.
Like, I know they had one of those branded cards before that lots of stores have, but this is another level. It feels like Apple is trying to monetise me, as a customer.
Sure they do. I use ApplePay every time I go there. They had issues when they rolled it out, but that has long since been resolved.
#1 will not be the case in the near future. Out of state sales taxes are coming soon to an internet store near you. B&H will definitely be one of them that will be required to collect out of state (I am guessing you are PA with the 6%, as I am) once state law makers catch up on the Supreme Court ruling. (and technically if you are in PA you are subject to use tax, so even though the overwhelming majority of people do not pay it, you are liable for it. Other states, policy unknown to me)
#2 There will always be better situational cards. if you spend that much money at Costco, then the Costco card > Apple Card. if you want to weight it purely on a cost / benefit system you will find better cards out there on the market for most people.
"In the spring of 2007, something changed—though at first it was hard to see what it was. On June 14, the pair of subprime-mortgage-bond hedge funds effectively owned by Bear Stearns were in freefall. In the ensuing two weeks, the publicly traded index of triple-B-rated subprime-mortgage bonds fell by nearly 20 percent. Just then Goldman Sachs appeared to Burry to be experiencing a nervous breakdown. His biggest positions were with Goldman, and Goldman was newly unable, or unwilling, to determine the value of those positions, and so could not say how much collateral should be shifted back and forth. On Friday, June 15, Burry’s Goldman Sachs saleswoman, Veronica Grinstein, vanished. He called and e-mailed her, but she didn’t respond until late the following Monday—to tell him that she was “out for the day.”
“This is a recurrent theme whenever the market moves our way,” wrote Burry. “People get sick, people are off for unspecified reasons.”
On June 20, Grinstein finally returned to tell him that Goldman Sachs had experienced “systems failure.”
That was funny, Burry replied, because Morgan Stanley had said more or less the same thing. And his salesman at Bank of America claimed they’d had a “power outage.”
Source: https://www.vanityfair.com/news/2010/04/wall-street-excerpt-201004
That is exactly what I said, under item (2). You missed it.
- 2% on purchases with Apple Pay (website or brick-and-mortar). [My Partial Con: Never tend to use Apple Pay, because my Costco Exec-level City card (4%,3%,2%,1%) remains as my go-to card, and Costco does not accept ApplePay.]
Citibank is risk averse given the history of the company the last 10 years. An older company as well so more conservative and doesn't have visionary younger view to take things in a newer direction or adapt to newer consumer ways of spending and consuming.
There was a Blockbuster streaming service before they went down for the count. They had a very different selection of videos compared to Netflix at the time (lots and lots of concert videos for example).
Huge if true.... Anytime a bank doesn't feel they can make huge profits and gouge consumers its a good sign for consumers.
I already have a Capital one venture card with double points on all purchases which I use for the points and always pay off each month... But otherwise I would be tempted to get the Apple card, if nothing else than for how cool it looks and how forward thinking it is.
I already have a Capital one venture card with double points on all purchases which I use for the points and always pay off each month... But otherwise I would be tempted to get the Apple card, if nothing else than for how cool it looks and how forward thinking it is.
When this rolls out and I can use it internationally I'll give it a look.
Till then my other cards will continue to do just fine.
Till then my other cards will continue to do just fine.
You are correct. I have edited my post to reflect that AppleCard/ApplePay will not be accepted as it is MasterCardv--I stand corrected.
[On an aside, if not using the Citi/Costco card, you do need the membership card at the entrance, and possibly when paying at the register. (Not sure about that, since I use the physical Costco/Citi Exec-level card, I show it, when asked, and I am good to go.)]
When considering joining Apple Pay (or Store, or Music) its always a decision on whether or not adding Apple’s consumer base is worth Apple’s percentage. Every company (and each MR member) does its own calculus.
For a moment, I was excited to see apple make a few overdue improvements to the credit card. ...until I looked at the numbers and realized it's still very much a typical credit card propping up the same unethical credit system in this country that every other slimy predatory lender does.
Rule 1 still applies. Don't spend other peoples money.
Rule 1 still applies. Don't spend other peoples money.
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While I have criticise Apple for its slow roll out on Apple Pay, Apple Pay Cash is 10 times more complicated. Apple Pay is only another Layer on top of the already established NFC and Mobile Payment via Visa or Master. Apple Pay Roll out limitation is likely more about business decision than technical or regulation.
Apple Pay Cash on the other hand, is on another level. Apple is basically acting as a third party operating with a bank ( Green Dot in US ) and you are transferring your cash within those Green Dot account. Anything that involves bank, money transfer will automatically means huge amount of regulation hurdle. ( And Cost )
I have no idea how Apple Card will work in EU, I know most of them prefer Debit Card. If it take 5 years for Apple to reach the current Apple Pay roll out, I doubt Apple Pay Cash will be any faster. ( Please prove me wrong Apple )
LoL. Citi failed to apply the number one rule: “if somebody is going to disturb your status quo for profit, it had better be you.”
So, you're willing to get a hard pull on your credit and get points deducted just for ***** and giggles?
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I find this interesting because several prominent credit card companies didn’t want to displace their profits or lose profit margin to themselves. Think about that. Assuming you decide this card will be a big hit, you have companies with challenged business models unwilling to take their profits wherever they will come by changing their model. They were offered to disrupt themselves.
One might argue one of the more genius moves made by Apple was disrupting the iPod to replace it with iOS devices like iPhone and iPad. Interesting to follow this one and see where the hindsight lies in 5 years.
One might argue one of the more genius moves made by Apple was disrupting the iPod to replace it with iOS devices like iPhone and iPad. Interesting to follow this one and see where the hindsight lies in 5 years.