Apple Card shifting to another big bank will probably kill this small company

AppleInsider

The transition of the Apple Card from being financed by Goldman Sachs to JPMorgan Chase will probably cut out a smaller company, CoreCard, that currently handles the credit card.

The financial giant behind the Apple Card is changing, but users are unlikely to see any big changes.

Goldman has been using fintech payment processing company CoreCard to manage the Apple Card business, reports the Wall Street Journal

When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.

CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.

CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.

For users of the Apple Card, the changes are likely to be perceived as minor. Goldman Sachs, which currently manages the card, announced in 2023 that it would be withdrawing from the consumer credit market. It originally took on the Apple Card in 2019.

Changes unlikely in the short term

Because JPMorgan Chase has its own processing capabilities, CoreCard owner Richard Strange believes it likely that the Apple Card processing job will go in-house, dropping CoreCard.

The transition will mean the loss of its biggest client. When Goldman first announced in early 2023 that it would be withdrawing from consumer lending, CoreCard's stock fell some 70 percent.

The stock has recovered some ground since then. The change, however, forced CoreCard to sell itself to Euronet, which provides debit-card processing for banks and other financial firms mostly in Europe and Asia.

JPMorgan will be unlikely to make noticeable changes to how Apple Card holders are handled as the transition completes.

The card's features, including CoreCard's billing cycle and graphic presentation of payment options, have proven popular with users. Thus, any new features or changes will presumably be rolled out over time.

JPMorgan has not spoken about its future plans for the Apple Card. Euronet bought CoreCard for $248 million in an all-stock deal.



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zenwaves

Just wish they would use a bank / service that plays nicely like other banks / wealth advisory tech.

Would like to have my purchases shared with e-Money for tracking trends, etc.

macgui

AI said:
When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.
CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.
CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.  

The "payment" wheel is one of my favorite features of the Apple Card. It greatly simplifies keeping track of payments and facilitating adjustments should the need arise. There are other features unique to the Card that I like. They may survive for a bit after the transition but I don't expect them to last. I foresee Chase saying "keep your payment wheel - we're not buying it from you".

My next concern is whether or not Chase keeps the Card a MasterCard or makes it a Visa card. I have no idea how costly it would be to swap them, or if it's at all feasible to Chase to do so. I'd prefer it to be a Visa card.

ios_guy80

macgui said:

AI said:
When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.
CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.
CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.  

The "payment" wheel is one of my favorite features of the Apple Card. It greatly simplifies keeping track of payments and facilitating adjustments should the need arise. There are other features unique to the Card that I like. They may survive for a bit after the transition but I don't expect them to last. I foresee Chase saying "keep your payment wheel - we're not buying it from you".

My next concern is whether or not Chase keeps the Card a MasterCard or makes it a Visa card. I have no idea how costly it would be to swap them, or if it's at all feasible to Chase to do so. I'd prefer it to be a Visa card.

I agree with you on all points. Change is good but habits for me are hard to change. I am so use to how the current Apple Card works, the interaction, the user interface, etc. etc. I would hate to lose any of those features. The Apple Credit Card and it’s functionality within the Apple Wallet along with Apple Pay is just a seamless user experience on a daily basis. Everything about it just works. Don’t change anything..

mplsp

macgui said:

AI said:
When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.
CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.
CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.  

The "payment" wheel is one of my favorite features of the Apple Card. It greatly simplifies keeping track of payments and facilitating adjustments should the need arise. There are other features unique to the Card that I like. They may survive for a bit after the transition but I don't expect them to last. I foresee Chase saying "keep your payment wheel - we're not buying it from you".

My next concern is whether or not Chase keeps the Card a MasterCard or makes it a Visa card. I have no idea how costly it would be to swap them, or if it's at all feasible to Chase to do so. I'd prefer it to be a Visa card.

Why does it matter? Mastercard is accepted in a few more countries but they’re virtually identical and the card benefits are usually determined by the issuing bank, not the platform. As I understand it, the main difference is how swipe fees are charged which doesn’t really affect consumers. 

iOS_Guy80 said:

macgui said:

AI said:
When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.
CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.
CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.  

The "payment" wheel is one of my favorite features of the Apple Card. It greatly simplifies keeping track of payments and facilitating adjustments should the need arise. There are other features unique to the Card that I like. They may survive for a bit after the transition but I don't expect them to last. I foresee Chase saying "keep your payment wheel - we're not buying it from you".

My next concern is whether or not Chase keeps the Card a MasterCard or makes it a Visa card. I have no idea how costly it would be to swap them, or if it's at all feasible to Chase to do so. I'd prefer it to be a Visa card.

I agree with you on all points. Change is good but habits for me are hard to change. I am so use to how the current Apple Card works, the interaction, the user interface, etc. etc. I would hate to lose any of those features. The Apple Credit Card and its functionality within the Apple Wallet along with Apple Pay is just a seamless user experience on a daily basis. Everything about it just works. Don’t change anything..

The biggest request I have would be to allow automatic downloading into Quicken. Having a web site like every other card has would also be nice. 

applepoor

I would guess that Chase will convert the Apple system to be just like any other of their "specialty card offerings" and the unique features we all like will vanish. At which point I will cancel the card. 

mike1

macgui said:

AI said:
When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.
CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.
CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.  

The "payment" wheel is one of my favorite features of the Apple Card. It greatly simplifies keeping track of payments and facilitating adjustments should the need arise. There are other features unique to the Card that I like. They may survive for a bit after the transition but I don't expect them to last. I foresee Chase saying "keep your payment wheel - we're not buying it from you".

My next concern is whether or not Chase keeps the Card a MasterCard or makes it a Visa card. I have no idea how costly it would be to swap them, or if it's at all feasible to Chase to do so. I'd prefer it to be a Visa card.

Chase offers both Visa and MasterCard cards. I don't pretend to know what would make them want to or not want to switch to Visa.

williamlondon

ApplePoor said:

I would guess that Chase will convert the Apple system to be just like any other of their "specialty card offerings" and the unique features we all like will vanish. At which point I will cancel the card. 

Assume the negative, then condemn. Good god.

macgui

mike1 said:

macgui said:

AI said:
When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card's processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.
CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.
CoreCard also developed the "payment wheel" graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.  

The "payment" wheel is one of my favorite features of the Apple Card. It greatly simplifies keeping track of payments and facilitating adjustments should the need arise. There are other features unique to the Card that I like. They may survive for a bit after the transition but I don't expect them to last. I foresee Chase saying "keep your payment wheel - we're not buying it from you".

My next concern is whether or not Chase keeps the Card a MasterCard or makes it a Visa card. I have no idea how costly it would be to swap them, or if it's at all feasible to Chase to do so. I'd prefer it to be a Visa card.

Chase offers both Visa and MasterCard cards. I don't pretend to know what would make them want to or not want to switch to Visa.

Yes I said as much in the last paragraph of the post you quoted. Nor do I pretend to know if they  they would/wouldn't want/not want to switch. But I would prefer it to be a Visa.

williamlondon said:

ApplePoor said:

I would guess that Chase will convert the Apple system to be just like any other of their "specialty card offerings" and the unique features we all like will vanish. At which point I will cancel the card. 

Assume the negative, then condemn. Good god.

In fairness he did say "I would guess" and not "they will". Given typical business practices I would expect Chase to put their brand on it (not just their logo) to make it a Chase product.

I too expect to lose some unique features of the card and will frankly be surprised if we don't. All the features? I think not. But being a Chase card holder I know they don't have nearly the number of user friendly features of the Apple Card.

All cards I've had or have offer some terms the Apple Card doesn't but that's not what I mean be user friendly features. Being able to get so much information about my account just from within the wallet is pretty amazing. 

So do I have confidence Chase will create an app that rivals what we have now? I do not. Do I believe they will trash the card and deliver something I can't/won't use? I do not.

I probably wouldn't cancel the card if the Chase version is far enough from what G-S gave us. That has a hoop to consider regarding credit ratings. It just might not be my primary card as it is now.

blaurieter

I wonder how this will effect the Apple Savings? That has been a major attraction for many people. One good part would be better connection between a Chase managed Apple Card and third party management systems like emplan.com which can integrate expense analysis across multiple credit cards, checking accounts, etc. 

macgui

MplsP said:

Why does it matter? Mastercard is accepted in a few more countries but they’re virtually identical and the card benefits are usually determined by the issuing bank, not the platform.

Um, I'm US centric, so any benefits outside the country don't matter to me.

MasterCard is not excepted everywhere in the US as is or as much as Visa. This is the function of the retailer, not the platform or the issuing bank.

An individual customer can probably request either card from Chase but the Apple Card will be assigned one or the other.

Blaurieter said:

I wonder how this will effect the Apple Savings? That has been a major attraction for many people.

I got the Card on Day One when there wasn't the Apple Savings feature just Daily Cash. I shifted that money into Apple Savings and the amount grows very quickly. I would miss Daily Cash and Apple Savings big time.

vtvita

The Apple Card stinks. It's the worst credit card experience I've ever had by far. I presume Goldman-Sachs deserves the bulk of my disgust.

mplsp

macgui said:

MplsP said:

Why does it matter? Mastercard is accepted in a few more countries but they’re virtually identical and the card benefits are usually determined by the issuing bank, not the platform.

Um, I'm US centric, so any benefits outside the country don't matter to me.

MasterCard is not excepted everywhere in the US as is or as much as Visa. This is the function of the retailer, not the platform or the issuing bank.

An individual customer can probably request either card from Chase but the Apple Card will be assigned one or the other.

Blaurieter said:

I wonder how this will effect the Apple Savings? That has been a major attraction for many people.

I got the Card on Day One when there wasn't the Apple Savings feature just Daily Cash. I shifted that money into Apple Savings and the amount grows very quickly. I would miss Daily Cash and Apple Savings big time.

Where is Mastercard not accepted that visa is? In over 30 years of having a Mastercard I’ve never found a retailer that took visa but not MC