Good luck there, GS. You're going either have to pay an absolute fortune to break the contract or ride it out.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Goldman Sachs CEO Says Contract With Apple May End Early
- Thread starter MacRumors
- Start date
- Sort by reaction score
Apple will have contingencies in place to make the transition transparent when they switch institutions.
I really wish Costco would up their game and offer at least 3% back on the Costco Visa in their stores.
If they really don’t want you, they’ll just close your account.
In the US, they were exclusively American Express before their switch to Visa.
It’s not so much a regulation thing as Costco making deals with the card companies. They’ve switched between Amex, Mastercard, and Visa over the years. This only applies to credit cards, you can use a Mastercard debit and, of course, cash.
No other credit cards, you can use Mastercard debit.
Banks will happily do business with financially responsible customers. They are not cartoon villains, just amoral profit maximizers.
Apple Card is simply a bad product from any bank's perspective. Either the fees are too low or the rewards are too high (or Apple takes too large share of the revenue) to make it viable with the customer base it has. If you want to make it profitable, you need to increase the fees and/or lower the rewards. But then you get bad publicity and the product becomes less attractive.
Depends what you mean by "most." Part of the problem GS has faced with losses on their Apple Card holdings is their ratio of bad debt is higher than other, similar cards. They issued cards to people who had no business being given credit, or with extremely high credit risk, likely under pressure from Apple (and themselves) to grow the userbase since this was the first card GS had ever issued.
When Chase first entered the picture as a possible suitor, some months back, the financial press noted that a sticking point was Chase wanted a discount to take over the existing holdings. This is unusual—usually when the issuer changes, it's a 1-to-1 transaction. The reasoning was that the amount of bad debt GS was holding on AppleCard balances was out of line with industry norms.
Last edited:
Goldman Sachs is losing money (or at best making a teeny tiny profit) on the Apple partnership because they (GS) were too eager to get into the consumer banking business and gave Apple terms so favorable and one-sided that no other sane bank would have.
For instance, Goldman Sachs gets zero from swipe fees. Then there was the rush for Goldman to approve almost as many people as they could to get ahold of them as a customer, where over 25% of them are sub-prime. The result? Higher than average default and delinquency rates and where the credit card loan loss rate is the worst among U.S. credit card issuers.
🤦♂️
The Apple card dragged down Goldman's return on equity by 75 to 100 basis points last year, but "that will improve in 2025 and 2026," he added.
The business is housed within Goldman's platform solutions unit, which posted an $859-million annual net loss in 2024.
Last edited:
I guess Costco has a deal with Visa for their own card, that’s my guess as to why they refuse Mastercard.
As for the Apple Store question, typically Apple requires that you use Apple Pay vs a physical card to get the 3% back.
Many of the customer service problems will continue if Apple insists on putting secrecy above all else, allowing T1 & T2 reps to only see the same information as is in the Wallet app, and require standard financial information to only be accessible to T3, who you can only talk with if you “file a complaint,” wait up to 10 days, and are able to talk when they randomly call. Hopefully Apple realizes the tech approach to customer service doesn’t work in the financial sector.
You just brought me back to a time when I thought I was going to be washing dishes to pay for a beer and snack while abroad because the place didn't accept Amex.
When traditional banks mergers or acquisitions happen the accounts automatically transition from bank A to bank B's systems, you don't close accounts and reopen. This usually occurs on a weekend or long holiday weekend to minimize disruption. How the transition works and how impactful it is (ie: new account numbers, new online login credentials, new checks/cards, etc.) depends on the specifics of the bank merger, and how smooth it goes depends on how good the bank's IT department is. I've been through several and some have been incredibly easy, some were not.
Apple Card is a bit different because Apple provides the entire front-end user experience and GS provides the back end systems. Because Apple controls the front end, any transition to a new backing bank should be much more seamless from and end user experience. Any changes that would need to be considered (such as updating the sixteen digit full card number, the savings account number, or the routing number) would be communicated to users well in advance for any recurring payments or deposits they have set up. Apple might even take care of updating those automatically as some larger banks do.
I had an account at HSBC which got bought out by Citizens bank. My account stayed as is, but I got new account numbers.
I prefer it stay with MasterCard forever. My Chase Amazon Prime card is a Visa, my Amex is a Blue cash preferred.
3 credit cards ought to be enough, one on each major network.
3 credit cards ought to be enough, one on each major network.
I use my Apple Card without any issues. I don’t have anything in the savings account side, and the credit ceiling on the card is relatively low. That works perfectly for me since my main goal is to have just one or two cards with modest limits. 💸
Goldman refuses to cooperate with my bank (major major bank) in allowing them to initiate a transfer from savings. The only answer my bank had was to initiate from the GS/Apple side, but AFAIK, there is no way to set a recurring transaction this way.
Good riddance GS. Apple needs to find someone who knows what they are doing.
Good riddance GS. Apple needs to find someone who knows what they are doing.
Nothing on your end as a customer should need to be done. Generally they keep the accounts as is. It’s more an internal process that changes their way of working with existing customers.
I would consider it but I have the Costco card so I can get cash back for gas which you can't do without the Citi card. Well, I should say Costco is not going to give it to you on the membership. With the Costco Citi, you get 4% in the store and at the pump. I like my Apple Card but that is a better deal.
This will be a very unpopular reply, but it's because Goldman Sachs' loss rate on Apple Card customers is the worst of all US credit card companies. Apple Card customers have low credit scores—a quarter of them have scores below 660, the threshold for "prime" credit. This is risky for the bank backing the credit card, because they take losses when they aren't repaid by borrowers. People will want to blame the banks or the lack of fees, because that's easy to say, but it's really the number of Apple Card customers who haven't been making their payments.