I’m concerned! Should I pause my plan to take advantage of the Apple Savings account? I don’t want anyone messing with my hard earned money.
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Goldman Sachs Wants to End Apple Partnership, American Express Might Take Over
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When it comes to Apple Card, GS is doing what Apple has instructed them to do. They follow the same processes as Apple Support.
I've had TMobile for 10 years and I just got the email last week. I HATE using a Debit card and I'm sure as hell not giving them direct access to my bank account. I guess I'll have to use Debit to keep the $15 per month saving.
I don't use my Apple Card for POS transactions much, but I know Amex has less retailers that accept AMEX. MC and Visa are pretty much able to be used at most places that accept credit card payments.
So, switching to AMEX CC payments from MC payments could prove troublesome for some users.
So, switching to AMEX CC payments from MC payments could prove troublesome for some users.
TheYayAreaLiving 🎗️
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To be honest with you I would suggest waiting. Let’s see how this plays out.
Next to zero. Apple would have to become a bank itself to do that.
If Goldman Sachs has lost 3 billion in the last three years, how can it be successful?
WSJ: Goldman Sachs wants to bail on Apple Card partnership after $1B loss, in talks with Amex - 9to5Mac
Apple has developed a deep relationship with Goldman Sachs through Apple Card, but apparently, it’s an unhappy marriage. According to...
9to5mac.com
How is Goldman losing so much money on Apple Card?
First, Apple Card doesn’t charge users any fees other than interest. Other card companies nickel and dime with things like late fees and foreign transaction fees, but Apple Card does not.Second, Goldman has also been very liberal in approving people for Apple Card. This has led to the bank having to charge off balances at a much higher rate than banks like Chase and Bank of America. Here are some numbers from the company’s recent regulatory filings:
- Goldman has a 2.93% net charge-off rate, double that of Chase and Bank of America
- “Charge-offs” are typically after a customer misses payments for six months
- Interest is one of the most lucrative ways credit card companies make money, but if the customer simply stops paying their bill altogether, the bank can’t collect that interest (at least right away).
- More than a quarter of Goldman’s card loans have gone to people with FICO scores below 660
- Chase says 12% of its loans are to users with scores below 660. Bank of America says that 3.7% of loans are tied to FICO scores under 620.
- According to Goldman employees, the company is less aggressive (and less successful) at recovering charge-off debt than other banks.
TheYayAreaLiving 🎗️
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Good points! I think Goldman Sachs is upset Apple has become a $3 Trillion dollar company today and they want a piece of that?If Goldman Sachs has lost 3 billion in the last three years, how can it be successful?
WSJ: Goldman Sachs wants to bail on Apple Card partnership after $1B loss, in talks with Amex - 9to5Mac
Apple has developed a deep relationship with Goldman Sachs through Apple Card, but apparently, it’s an unhappy marriage. According to...
How is Goldman losing so much money on Apple Card?
First, Apple Card doesn’t charge users any fees other than interest. Other card companies nickel and dime with things like late fees and foreign transaction fees, but Apple Card does not.
Second, Goldman has also been very liberal in approving people for Apple Card. This has led to the bank having to charge off balances at a much higher rate than banks like Chase and Bank of America. Here are some numbers from the company’s recent regulatory filings:
- Goldman has a 2.93% net charge-off rate, double that of Chase and Bank of America
- “Charge-offs” are typically after a customer misses payments for six months
- Interest is one of the most lucrative ways credit card companies make money, but if the customer simply stops paying their bill altogether, the bank can’t collect that interest (at least right away).
- More than a quarter of Goldman’s card loans have gone to people with FICO scores below 660
- Chase says 12% of its loans are to users with scores below 660. Bank of America says that 3.7% of loans are tied to FICO scores under 620.
- According to Goldman employees, the company is less aggressive (and less successful) at recovering charge-off debt than other banks.
How long are you willing to wait? Their contract doesn't end for 7 years. If GS wants out early Apple needs to agree to it and there is no way they would agree to anything that would "mess" with your money. Worst case is your savings account is transferred to another company and your account/routing number changes.
Things like this take time. I would expect at least a year or two transition time after a deal is announced (and nothing is announced).
Say bye to the Apple iCard Mastercard, and hello to the Apple iCard Pro AmEx!
Your talking about this:
We have no idea that how that was agreed to, the assumption that a partnership is iron clad might be incorrect given recent changes financially? Would a bank agree to continued operations at a loss without some wiggle room?
Ok. That has never happened to me for non-technical (which I read to mean related to banking) issues. I’ve always been able to get my issue quickly sorted out through card reps who can see my transactions and other things related to accounts and transactions.
I bet it was Apple that wants to get them replaced. Their service is horrible.
I would think that the Bank of China seems more likely than AMEX to take over the Apple credit card business.
Obviously I don't know the details of that deal. And I am sure Apple won't want to force Goldman Sachs into something they want out of. I do however know how long transitions like this can take. Even if the deal was announced today, nothing would change for at least a year.
You can pay your GS Apple Card out of your Apple GS savings account.
Any money in there before payment is due earns 4.15 APR.
American Express would make much more sense and would be a behemoth partnership with Apple. AMEX's worldwide footprint would also help facilitate expansion of Apple Card which Goldman Sachs hasn't been able to manage.
You wouldn’t want to use it at Costco gas.
You want to use Costco visa as it pays 4% rebate on gas.
For in store costco pays 2% and you have to Apple Pay w Apple Card to get 2%.
In Switzerland you get an AMEX and a V or MC from some banks. The AMEX is issued by a JV AECS.
Same here.
My mom with 840 FICO got a 1500$ limit when she applied. So she only uses it to pay her iCloud+ monthly fee. Used her visa for Costco and AMEX for a few other things.
She wanted to use the Apple Card for non Costco shopping for the 2% rebate vs 1% from Costco Visa.
Has 60,000$ in the GS Apple savings account. She owns her home and car.
Needed a credit increase as her monthly balance is 1500$ (she is an autopay balance payer). To have a reasonable utilization ratio below 25% she needs a limit of 6000$ to protect her FICO score.
Applied for a credit limit increase. Automatic reply of increase to 1750$.
Sent text to apple/GS complaining. Said they could not raise it further; try again in a month.
So she will not use the Apple Card for more than she already does.
GS might not earn any interest fees off my mom but they don’t even get the card fees the way they run the business.
Things happen it sounds like Goldman Sachs wanted to establish itself as a bank or that it's worried about the future of its own business and doesn't want to carry this debt to screw up their P&L which is probably more likely.
Goldman Sachs does not want to continue its partnership with Apple, according to a new report from The Wall Street Journal. Apple has teamed up with Goldman Sachs for the Apple Card credit card in the United States, Apple Pay Later, and the Apple Savings account that Apple Card users can opt for.
The banking company wants to cut back on its consumer business, and is now in talks with American Express (or Amex) about a potential takeover. A deal would see Goldman Sachs offloading its credit card partnerships to another company, which would include the Apple Card and other credit cards like one it offers for General Motors.
American Express has not yet established an agreement with Goldman Sachs, and a deal is not "imminent or assured," according to people who spoke to The Wall Street Journal.
Goldman Sachs recently extended its partnership with Apple through the end of the decade. Apple would have to agree to a transfer, and is aware of the talks that Goldman Sachs has been having with Amex.
Article Link: Goldman Sachs Wants to End Apple Partnership, American Express Might Take Over
My mom locked away her Citi Mastercard and after a few years Citi cancelled it without notice. She had had it since 1995.
She has a Costco visa she uses for most things. Pays her monthly cable bill on her AMEX (member since 93). Pays her iCloud+ in her Apple Card. Her fico was unaffected by these changes.
I cancelled my 1993 era US Bank visa a few months ago. Got tired of 49$/yr fee for card I didn’t use. Have only amex w/a (93 era membership) and Apple Card. Fico score unaffected.
Both the Costco visa and apple Mastercard have lousy supplemental coverages. If I buy something that needs a warranty or a free supplemental insurance coverage I use my AMEX.