Everything you need to know about Apple's new credit card
At yesterday's 'Special Event' in California, Apple debuted some pretty interesting services, including its first-ever consumer credit card. Dubbed 'Apple Card', the offering from the company comes through its partnership with Goldman Sachs and MasterCard. It offers features like instant approval, zero fees, and daily cash back on purchases, making an ideal package for shoppers. Here's everything we know about the Apple Card.
A credit card built into Apple Pay
Apple Card, as the Cupertino giant says, will work as a fully functional credit card at stores across the globe. It will be built into the Apple Pay wallet app on your iPhone, but there will also be a "titanium, laser‑etched" avatar of the card that you could use to swipe at places where Apple Pay isn't supported.
Apple Card will offer instant approval, detailed tracking
When Apple Card launches, you'd be able to apply for it through the Apple Pay app. The company will then determine your eligibility (terms not detailed) and issue the card if you qualify. After this, the card will show up in the wallet with detailed specifics of how much you owe, where you've spent your credit and when the amount has to be repaid.
Apple Card will also show when and where transactions happened
Apple will leverage machine learning and Maps to show when and where a transaction had happened. It will label the stores, allowing you to keep a track of everything. Notably, if something doesn't add up in your statement, you can contact customer service through iMessage.
Then, there are the monetary benefits
Unlike regular credit cards, the Apple Card won't have any kind of charges. This means you don't have to pay any fee in cases of missing the due date or going over the credit limit. Apple is also ditching the point-based system for Daily Cash; you get 1% on regular physical card purchases, 2% on virtual card payments, and 3% on Apple Store purchases.
Daily Cash would be credited in your Apple Cash account
The Daily Cash, earned in real dollars, could be used for statement credits or transferred to a bank or Apple Cash account for regular transactions. However, do note that the maximum limit of cashback for a billing cycle would be 3% of the credit limit.
Apple Card also comes with enhanced security
In case you're worried about the security of the Apple Card, rest assured. The company has said that all security features that come with Apple Pay, including Face ID/Touch ID and one-time dynamic number codes, will be provided for the Apple Card. Plus, the physical card won't have any numbers etched on it, something that would take security to a whole new level.
Also, Apple won't track your spends
Notably, Apple has assured that it won't store information related to your spending through Apple Card. The data won't be stored on Apple's servers, while Goldman Sachs will never share the data for advertising or any other purposes.
Interest rates would depend on your 'creditworthiness'
Apple didn't give specific details about interest, but a fine print of the card says that variable annual percentage rates will "range from 13.24% to 24.24% based on creditworthiness." The company will also give a feature to see how much interest would be charged on different payment amounts. So, simply put, you'd be able to make informed decisions and save more on interest.
Note: Missing payment deadline will lead to additional interest
While Apple won't charge late fees, it says "late or missed payments will result in additional interest accumulating toward your balance." So, instead of charging additional money over the owed amount, the company would earn money in the form of late payment interest from you.
Also, availability is a big question
Even with additional interest, the Apple Card sounds like a great deal for enhancing the purchasing power of customers. This could lead to an increase in iPhone sales and other hardware thanks to 3% interest benefit, but as of now, the card is only coming for US customers. It would launch this summer and there's no word on the India release.
