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New Apple Cash Accounts Now Branded as Visa Cards
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The same is true in Canada. We were swimming in NFC payment systems years before Apple Pay came along. I was able to use Apple Pay in Canada over a year before it officially launched up here (with my U.S. Visa debit card).
By contrast, when Apple Pay launched in the U.S., only 2% of retailers supported any contactless payment solutions at all, so it's easy to see how it was quite magical arriving in an environment like that. In fact, my physical U.S. credit and debit cards didn't get updated with contactless chips until around 2017, so for a few years Apple Pay would have been the only way to do contactless payments.
But this is why I distinguished between taxable and non-taxable monies in my comment. Transferring your own money into Apple Cash would not be taxable. But receiving payment to Apple Cash (or PayPal etc) for products and services rendered would be taxable.
THE POINT IS: it looks like ALL these monies would count toward the $600, for every single payment handler that you use throughout the year, whereas the amount used to be $20,000 -- and the payment handler would likely not distinguish for you what is taxable and what is non-taxable (how could it?).
So you will get a 1099-K form from every one that got triggered by the $600 threshold. So by the time you file taxes, you will need to have all your transactions sorted to file the proper amount of taxes, and in case there is an audit.
Might be no big deal in terms of how much taxes you need to pay. (You only need to pay more if you would otherwise evade.) But it could be a logistical nightmare.
Disclaimer: I am also not a tax expert. But this is something that many people are not clear about, including some experts.
Just checked - mine switched over. USA user, have been using Apple Cash pretty much since it came out as a way to pay back family and have them pay me back. Went to request money from a family member yesterday and it brought up a screen about setting Apple Cash up again. It wasn't as involved as I recall the original process being - basically just accepting a few things - and then it worked as usual. Monetary balance unchanged. I just assumed it was something relating to an operating system update but I checked just now and see the Visa logo, so it was probably the shift from Discover to Visa.
Yay! I now have a way to go to Costco again since I only use my Apple Card for everything. I don’t keep my debit cards in Apple Pay, but I have a convoluted process to get money on Apple Cash. I Zelle the money to my wife and tell her to Apple Cash it back to me. And boom, now I have the money in Apple Cash.
I’m just weird and like a clean looking Apple wallet is all the reasoning for this.
I’m just weird and like a clean looking Apple wallet is all the reasoning for this.
Whenever Discover is brought up I think of the Futurama (show set in the 31st century) bit:
Fry to salesperson: “Do you take Visa?”
Salesperson: “Visa hasn’t existed for 500 years.”
“American Express?”
“600 years.”
“Discover card??”
“Oooh sorry, we don’t take Discover.”
Fry to salesperson: “Do you take Visa?”
Salesperson: “Visa hasn’t existed for 500 years.”
“American Express?”
“600 years.”
“Discover card??”
“Oooh sorry, we don’t take Discover.”
It sounds to me as if you are suggesting that the Daily Cash that is received when using the Apple Card for payments - that this is taxable.
Uh, no, it is not.
The Apple Cash is essentially a rebate from the payments you are making using the Apple Card. That is not interest, or capital gain. It is a rebate to you, a reduction in what you have spent using the card. Just like all of the various credit cards that offer cash back in various percentages.
None of these send users a 1099-K, because these cash rebates are not taxable.
Not taxable. It doesn't matter if it exceeds $600, or any other amount.
Have any of the folks here who have been using Apple Card for several years - have any of them received 1099-K forms? No, they have not. If the Apple Cash amounts were taxable, they would be sending out 1099-K's.
This is just common sense, one does not need to be a tax expert to understand this.
Not completely accurate. Apple Cash can be used to transfer money between people via Messages for example.
My post is specifically addressing only Daily Cash, not all of the other uses of the Apple Cash service. It is accurate.
Same here. Not only did this work but I now seem to have $99,000 in cash on my card. Thank you, Apple!
You would do well to get the free Costco Visa card.
The cash back rates are very competitive. Enough for average Costco shoppers to earn enough back to pay their annual membership fee.
Just be aware that the supplemental protections, while better than the Apple Mastercard, are less than the Costco visa had at launch, and are not as good as a free AMEX card. But in every case the rebates and supplementals are better than the Apple Cash card (which has none of the former and probably none of the latter.).
I didn’t have the visa network update as part of the latest 15.5 Public beta 2. But after the manual toggle I described elsewhere in these comments it appeared.
Perhaps at the start but I have every expectation that apple would push out a change to visa eventually.
Credit union network better get organized to allow atm validation and withdrawal like chase offers.
If apple offers this without fees, they will pull new customers out of banks and credit unions.
I’m a yank but longtime Swiss resident.
USA allowed itself to fall behind the world on many things. As to payments, people still write cheques (in Switzerland, for those that aren’t using ebanking, and receive invoices by post, they can scan a QR code in their banking app to pay them), and the build out of contactless in the states is dragging on half a decade after most countries made that conversion (and swipe to pay is in zombie mode only in the USA) this delay largely due to big oil that didn’t want to upgrade their gas pumps (and greedy merchants like Kroger, Home Depot and Walmart who force payment through their proprietary systems for fee capture purposes.)
That said a couple years ago, my sister paid the full amount for a new car with AMEX using Apple Pay on her Apple Watch. So progress is being made.
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Your weirdness isn’t serving you here (better to grow a beard and wear cartoon socks instead.)
This is a poor reason, and a lot of tedious pointless time loss for your wife, just to forgo cash back rebates that you could get if you used a Costco visa for everything instead.
Assuming you frequent Costco you are pi$$ing away all the card related rebates there (this is totally exclusive of and additive to the executive member rebates).
Good news for an international roll out. Discover is a niche player, primarily (exclusively?) in the US. VISA has a world-wide network.
Same with me, they’re definitely updating some existing accounts too. I’ve had mine since Apple Cash launched (as Apple Pay cash) in 2017 and now it’s visa debit. I do see the logo when I double click to pay, after the face id authentication. Other people are still seeing it as Discover, though, as reported in this thread I opened on the topic: https://forums.macrumors.com/threads/apple-changes-card-network-for-apple-cash-card.2342313/
And in Mexico too. I tried using the Apple Cash card when it was Discover and the POS wouldn’t even recognize it. Even at places advertising that they do take Discover. Now that it’s visa I tried again on the same POS’s and it worked flawlessly.
The question pertains to the new laws that focus on taxable income for P2P payments like those on Venmo and Cash. Prior to this, one could use these for commercial purposes - say, a barber or hairdresser - and have it be under the table, same as cash. Apple Cash can also be used for P2P payments in the same manner, which drives the question. But even with Venmo and Cash, you only need to file against it if you’re using it for commercial purposes. It can be cleared up with receipts, or a simple explanation. This is way down from the previous 20 grand/200 transaction limits.