I also never had this issue but I guess it existed for some.
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U.S. Regulators Want More Control Oversight Into Apple Pay
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There are clearly plenty of misunderstandings that need to be cleared up in these forums.
- Apple Pay is not the same thing as Apple's credit card. Apple's credit card and savings accounts are issued by Goldman Sachs. Goldman Sachs has nothing to do with Apple Pay other than enabling the credit cards they issued to be added to it.
- Apple Pay is a payment processing system run by Apple in conjunction with the major credit card processing platforms.
- Apple Cash is used to house rewards and P2P payments and is housed on a stored value card account issued by Green Dot Bank.
- Most importantly: The CFPB's actions are not specifically targeting Apple, but the entire FinTech industry - PayPal, Venmo, Square, etc. The goal here is to make sure the financial services offered by all of these companies follows the same rules as banks and are subject to similar examination/inspection requirements. If Apple is using reputable, already regulated partners to provide financial services to consumers then it will have a minimal impact on them.
I read that, but I don't understand why they would have lost staggering amounts of money on the Apple Card.
I don't believe they actually said the did. But my understanding is the anticipate to make money via interest and with the Apple Card it is super easy to avoid paying interest.
If you want to work like a bank, you should be held to the standards that banks are. This is relatively reasonable as described so far. Hit up all the major players and make sure they are behaving.
I have a fair bit of faith in Apple. However, trust but verify makes sense here.
I haven't had any real issues (adding and removing cards for a new phone or iOS update). I use Apple Pay connected to an Apple Card multiple times a week.
Of course they want more control, of course they do.
I’m guessing the “Complaints“ are from other Credit Card companies that missed the boat on Digital Wallet services and want a piece out the Google Wallet and Apple Pay pie.
Glad everyone has the exact same question I had reading this: what complaints? From whom?
Some excerts from the article cited below:
First, Apple Card doesn’t charge users any fees other than interest. Whereas other card companies nickel and dime with things like late fees and foreign transaction fees,
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 (via CNBC):
- Goldman as (sic) a 2.93% net charge-off rate, double Chase and Bank of America
- Goldman is less aggressive (and less successful) at recovering charge-off debt than other banks
Goldman Sachs has lost billions on Apple Card, but it's optimistic
In January, a report indicated that Goldman Sachs had lost over $1 billion through its partnership with Apple for the...
9to5mac.com
In addition most credit cards stage their billing through out the month. Apple billing is on a single date causing major problems with customer service.
No, I said in my post point of sale transactions where consumers complain…Looking for something like this?
‘A Total Nightmare’: Transfer Delays With New Apple-Goldman Savings Accounts Prompt Complaints
When Kevin Smyth learned in April that Goldman Sachs and Apple were offering a savings account with higher yields than anyone else, he jumped at the chance to shift money that was earning less at another online bank. But within a few weeks, when he had to withdraw a small portion of the funds to ...www.theinformation.com
I really, really, really hope Apple Card doesn't become an Amex Card. I want it to continue to be a Mastercard credit card, or a Visa (and no Discover either!). Amex is truly quite, quite useless outside of North America, and even within the US, it's not as accepted as Visa or Mastercard. Discover is even more useless than Amex outside of North America.
Oh yeah, the feds want more of that sweet sweet over$ight.
Finance and banking absolutely require regulation and oversight. I'm fine with that-- as long as all players face the same scrutiny. There's something about how this is written that makes me feel like they're focusing on companies like Apple when I'd still like transaction skimmers like Visa and actual banks to get more scrutiny.
I hope this isn't creating a new boogie man just to draw attention away from the real boogie man.
I hope this isn't creating a new boogie man just to draw attention away from the real boogie man.
The Macrumors headline is a bit misleading, given that the CFPB article doesn't mention Apple Pay specifically. I don't think Apple has much to be concerned about, since Apple Pay transactions are largely handled directly by the issuing bank without much involvement from Apple. It's another story with services like Paypal, which acts as a true man-in-the-middle and has employed some dubious practices in the past (such as arbitrarily freezing accounts). And Google Pay, being cloud-based, has far weaker privacy protections.
Honestly guys, we should welcome this and all regulation. Any time the government gets involved things become more efficient, cheaper, and easier. We should have been asking for this all along.
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Central bankers gonna central bank!
The United States Consumer Financial Protection Bureau (CFPB) today proposed new oversight requirements for technology companies like Apple that offer digital wallets and payment apps.
According to the CFPB, payment services like Apple Pay are growing in popularity, but the companies behind them are not subject to the same "supervisory examinations" that banks undergo.
The newly proposed rule would require companies that handle more than five million transactions per year to adhere to the same rules as large banks, credit unions, and other financial institutions that are supervised by the CFPB.
The CFPB claims that there have been an increasing number of complaints about tech companies in the consumer finance market, and it argues that examiners should be able to carefully scrutinize the activities of tech companies to ensure they are following the law.
The CFPB wants to be able to conduct examinations of tech companies to make sure that they are following funds transfer, privacy, and consumer protection laws, and adhering to the same rules that banks must follow. If finalized, the proposed rule would give the Consumer Finance Protection Bureau more oversight into the financial services provided by companies like Apple and Google.
Article Link: U.S. Regulators Want More Control Oversight Into Apple Pay
Like other commentors, I want to see the nature of these complaints against Apple. If the consumers already have recourse, then my answer to the government is butt out. A lot of innuendo flies around anonymously on a variety of topics. Typically they cite vague or anonymous sources hoping that will cause enough concern to catch the public’s attention. But we need to know facts and what is being addressed.
I see ApplePay as a mechanism for processing the transaction. Fine if they want to regulate it, but by the same token there should be equal regulation placed upon Point of Sale (POS) mechanisms. With several companies refusing to allow ApplePay simply because they want to track customers, and offering their own versions of digital wallets (CurrentC), I would say they deserve a regulatory spotlight just as much if not more than ApplePay does.
LMAO, “Not subject to the same supervisory examinations that banks undergo.”
Hows that goin anyway? Oh wait. Citibank just announced a restructuring plan to reduce its workforce by up to 25,000 employees (10%.)
There will be 700 less Small and Regional Banks in operation this time next year.
The Feds just want a piece of the action. As always.
Hows that goin anyway? Oh wait. Citibank just announced a restructuring plan to reduce its workforce by up to 25,000 employees (10%.)
There will be 700 less Small and Regional Banks in operation this time next year.
The Feds just want a piece of the action. As always.
Say what you want about Apple Pay. It's been nothing but great for us. A no-touch system that made it safer to pay at checkouts when COVID was killing thousands every week. 2% instant cash for all transactions, or 3% on Apple products (although using the Amazon Prime card nets a 5% credit, and there are sales Apple doesn't offer). The convenience of not needing to reach into the pocket or purse, not needing a physical wallet, or even an iPhone (if you have the watch).
But government always makes things better for consumers when it steps into the free market, right? Better they should investigate Goldman Sachs or Wells Fargo or Chase or JP Morgan.
But government always makes things better for consumers when it steps into the free market, right? Better they should investigate Goldman Sachs or Wells Fargo or Chase or JP Morgan.