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Report Delves Into Why Apple and Goldman Sachs Want to Break Up
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Apple Card is not a good consumer product compared to other credit cards anyway with no real benefits. Even the cash back is a joke, you can easily get 5-10% cb with other cards.
The apple card users have a higher than normal default/non payment. Apple wanted easier lending limits, as well as lend to people where any bank wouldn't normally do.
GS basically said its due to the default rate its almost double the default rate of other cards.
Apple wanted to lend to people that others wouldn;t touch and it came back on them really hard. but GS took the brunt.
More than likely if GS ends this then any other bank won't let apple lend to who they want.
Also it could end up with GS ending the relationship, no other bank taking this on due to the losses, and apple having to sort it out or change the terms to where apple bears the brunt of write offs and losses instead.
This card is very consumer friendly. But large write off percentages does mean your lending to people who have no intention of paying anything back and that will ruin any bank.
I hope little changes on the consumer end no matter which way this goes. Apple Card is by the best thing that's happened to me credit wise in a long time. I've stayed away from them for years because of Wells Fargo and the underhanded approach most take with their services/fees/support.
I decided to jump back into the ring with Apple Card and it's amazing.
I decided to jump back into the ring with Apple Card and it's amazing.
What are your favorites in the 5-10% cashback space? I’m looking for a replacement daily driver but most cards I found seem more like 2-3% when you average the category games.
Do those other cards require annual fees? Most do from what I’ve seen. The Apple Card doesn’t.
Tell you the truth chances are you can beat the Apple card with no fees.
End of the day the Apple card is rewards are meh at best. It is an ok cash back card but reality there are better free cash back cards. It is not a bad card for Apple products but after that if falls off hard compared to other choices out there.
In terms of CC rewards card the Apple card is not great and the higher income people are willing to pay some fees for the card as they can get a lot more benefits out of the card than the fees are worth.
"Goldman Sachs does not get a portion of the fee that merchants pay to Apple to accept the Apple Card. Retailers pay a percentage of each transaction when taking a credit or debit card payment, and Goldman Sachs gets no funding from this"
Who TF agreed to that? If you aren't allowed to charge any fees - that is just about your ONLY revenue stream. Bananas.
I can see why they want out - but I can't understand why they sign on. No one would have ever agreed to these terms - so much negotiation they could have done.
Who TF agreed to that? If you aren't allowed to charge any fees - that is just about your ONLY revenue stream. Bananas.
I can see why they want out - but I can't understand why they sign on. No one would have ever agreed to these terms - so much negotiation they could have done.
Hmm.... There are some cards with rotating 5% (capped) categories with no fees or 3% back on dining (Cap1 Savor) .... but those categories are not going to be high spend for people to net rewards.
The best no fee cards are 2% back on everything cards - which is basically Apple card when using Apple Pay.
Most cards with fees are more than worth it though. Amex Preferred - 6% back at groceries stores (recoup 3-6X the $99 annual fee alone there), 3% back on gas & transit (uber, bus), 6% on streaming and music subscriptions, 1% on everything else and hundreds of bonus cash back offers. $1650 at the grocery store recoups the fee - everyone is spending that in 1-2 months.
That wasn't the problem. AMEX was outbid by Citi, who upped all the rewards by 1% and expanded their category caps. They both kind of suck, imo. You really want to high reward category to be purchases at Costco - and its not.
The clincher was a 0.4% transaction processing fee Citi offered and Amex couldn't match that.
This is more like the inverse of WalMart trying to ditch Capital One.
Yup nothing like using that card and getting a free membership. Of course I rarely get out of Costco under $200. lol
Apple can't if GS walks at the end of their contract period. and or use cancelation rules built into the existing contract.
The tell tale sign that Apple is the issue here is that no other banks has even considered apples portfolio. If GS walks at end of contract and no one steps in. it's going to get real interesting, real fast.
Obvs I’m talking about walking on a running contract; arbitration judges and courts are kept busy by this kind of thing.
You say no other but are you privy to the universe of apples discussions with banks?
If the banks balk, Apple will a) back off in some demands (that’s called negotiating), b) or just move up timing to become a bank or to buy a bank (my money is on them buying AMEX as it’s a bank, it’s a credit card, it’s a network, it’s world wide, and it’s affordable. **)
GS Apple contract runs to 2029, so there’s plenty of time for this to get sorted. I expect no drama or customer disruption.
** Yes, AMEX has a large business with cobranded cards but Apple has bought companies before that were doing business with Apple competitors (the TouchID company, or DarkSky, for examples.) and integrated them (dropping other customers in the process). To buy AMEX Apple would need a clever solution to keep all those cobrands happy and in board, but in reality, there would seem to be room to do that.
Oh that would be funny if Apple did that but oddly enough threw an indirect path it would completely screw over Apple music at least in the short term.