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What to Expect From the Apple Card This Year

Apple MessagePad said:
There's a good chance this thing is dead. No other backer is going to want to take on a card that's currently losing them over $1 billion a year. For any other company to even consider it, Apple will have to take a smaller cut, they'll have to lower cash back, and most importantly, cancel anyone with a credit score under 700. Most of the loss is coming from low score folks who are defaulting at far higher than the standard industry rate. That's where they need to stop the most bleeding.
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I'll be honest I was thinking a big chunk of the loss was coming from people like me. I use my Apple Card / Apple Pay for literally 99% of all my purchases but I keep the balance at zero by paying the entire balance usually once a week and therefore I have not paid 1 cent in interest since getting the card when it came out, but I have received a ton of money in the cash back rewards and the savings account over the years.
 
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orangeadrenaline said:
You overestimate the average person. They are far too lazy to switch from the Bank of America/Chase/Wells Fargo checking account they set up with their parents 25 years ago.
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Damn this hurt to read lol, literally my parents helped set me up with a Bank of America checking account when I was a teen 25 years ago and that's what I still use to this day haha. Should I move it to a credit union?
 
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Eh. I was initially jazzed two years ago when I got this card, but at this point I use it for Apple and App store purchases and nothing else.
 
thelion7 said:
They need to bring it to the uk.
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VulchR said:
It's been years it has been available in the US, but no availability in other countries? Odd for a company that supposedly does all of its research via an organisation in Ireland. 🙄
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Cards like this with benefits and cashback are common in the US because over there the fees charged for credit card transaction (interchange fees) are uncapped and are typically around 2%-3% of the transaction amount, which gives the banks a nice profit to be 'generous' with. By comparison, EU and UK fees are capped at 0.25%, so there's not really much financial incentive for Apple to launch a card outside of the US, and even if they did, you'd just get a trendy card, not the perks that they get in the US (and pay for with higher fees).
 
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KaliYoni said:
If Chase does take over the Apple Card, it will be interesting to see if Chase (parent company JPMorgan Chase) generates the same vitriol as Marcus (parent company Goldman Sachs) did from people who are uninformed about the financial services industry. JPMorgan Chase, while similar to Goldman Sachs in many ways, has been less of a target for attacks by activists and activist journalists.
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Which may change given their CEO Jamie Dimon earned over 700 Million dollars in 2025.
 
MacMikePro said:
I'll be honest I was thinking a big chunk of the loss was coming from people like me. I use my Apple Card / Apple Pay for literally 99% of all my purchases but I keep the balance at zero by paying the entire balance usually once a week and therefore I have not paid 1 cent in interest since getting the card when it came out, but I have received a ton of money in the cash back rewards and the savings account over the years.
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Same with me paying and interest. Not a penny for interest.
 
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Apple MessagePad said:
There's a good chance this thing is dead. No other backer is going to want to take on a card that's currently losing them over $1 billion a year. For any other company to even consider it, Apple will have to take a smaller cut, they'll have to lower cash back, and most importantly, cancel anyone with a credit score under 700. Most of the loss is coming from low score folks who are defaulting at far higher than the standard industry rate. That's where they need to stop the most bleeding.
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I’d be happy to see the Apple Card wallet app features just expand to other cards.
 
halfmac said:
I will cancel my card if Chase takes over.
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I'm not sure if I would stay or leave.
The best bank I ever used by far was Washington Mutual, and when Chase bought them, everything went to sh*t overnight. I closed my accounts that same month.
 
britboyj said:
I think the US probably heading to a place where most consumers stick to credit unions for banking, and most of the current major banks are large scale financial services for businesses and such and credit cards only.
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You may be right. Chase’s em phasis on serving businesses rather than consumers pretty much makes it akin to hiring PriceWaterhouseCoopers to do one’s personal taxes every year.
 
MacMikePro said:
I'll be honest I was thinking a big chunk of the loss was coming from people like me. I use my Apple Card / Apple Pay for literally 99% of all my purchases but I keep the balance at zero by paying the entire balance usually once a week and therefore I have not paid 1 cent in interest since getting the card when it came out, but I have received a ton of money in the cash back rewards and the savings account over the years.
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Nope, we aren't the issue. Goldman Sachs has said the issue is far and away bad debt. That's the people who run up their balance and then default, resulting in GS having to write off their debt and take a loss on it. Which is why they're going to need to cut off those more likely to do so.

While credit card companies do make a ton of money on those who hold a balance and pay interest, they can survive by just making money on the processing fees. It's largely how Amex has done it for decades. But it does mean Apple may need to take a smaller cut.
 
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I will be watching the news on this very closely because I have an Apple Card that I use for almost everything. I love it, and I love that being able to have all my cash back automatically deposited in a savings account got me refocused on building a rainy day fund. I hope they don't screw it up.
 
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britboyj said:
I think the US probably heading to a place where most consumers stick to credit unions for banking
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I have my paycheck directly deposited in my credit union checking account, and I pay my Apple Card with that checking account. I only opened a Goldman's Sach's savings for that high interest rate which WAS over 4% when I opened it.
 
britboyj said:
Yep. I fully expect the HYSEs to be closed and the cash back be limited to App Store and Apple Store purchases only, not every single purchase with the card.

A lot of the technical stuff like the physical card being able to rotate number and CID in the wallet app has been very handy in the US since I can hand a restaurant the card and guarantee the number is safe in a way other cards cannot.
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That’ll never happen. It’ll pay at least 1% cash back on all purchases, just like another other rewards credit card.

1% on all other purchases.
2% back on Apple related purchases.
Foreign transaction fee of 3%
Late fee of up to $40

Problem solved.
 
We can’t expect anything as the same story keeps getting redone over and over. Once we have some real facts and a confirmed timeline, then we can start expecting x, y, and Z.
 
Dark_Omen said:
That’ll never happen. It’ll pay at least 1% cash back on all purchases, just like another other rewards credit card.

1% on all other purchases.
2% back on Apple related purchases.
Foreign transaction fee of 3%
Late fee of up to $40

Problem solved.
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Nooooo foreign transaction fee 🙁. I love using this card in the UK.
 
Good to know about the possible changes. However it looks like it will be extremely unlikely that it will expand outside the US in the near future.
 
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Dark_Omen said:
That’ll never happen. It’ll pay at least 1% cash back on all purchases, just like another other rewards credit card.

1% on all other purchases.
2% back on Apple related purchases.
Foreign transaction fee of 3%
Late fee of up to $40

Problem solved.
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There are several other cards with no foreign transaction fee. I don't see them removing this one.

1% back would be one of the lowest rates on any rewards card, but if they're pushing it towards the lower credit score crowd, then maybe..
 
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WarmWinterHat said:
There are several other cards with no foreign transaction fee. I don't see them removing this one.

1% back would be one of the lowest rates on any rewards card, but if they're pushing it towards the lower credit score crowd, then maybe..
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Most of them have an AF unless you’re using a Capital One or a credit union branded card.

The Apple Card simply isn’t profitable enough to have no AF, no late fees, and no FTF, and then to offer 2% and 3% back categories.

If Apple wants to keep features like the interest rate calculator, no FTF, and 0% financing on Apple Purchases — something has gotta give so Chase can make the card profitable.
 
Art Mark said:
That is not the cards problem, but with how GS thought they would plow into consumer credit. The card is NOT losing them a billion dollars a year. They had horrible due diligence and seemed to know nothing about the consumer credit business. How many credit card companies lose billions? With 24% interest being charged - they are profit centers.
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I think people also forget (I don’t remember the article) but Apple Pay’s the cash back.
I think the same report echoed what you said. GS is loosing money because they don’t realize how much effort it would take.
 
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