Apple Card: no multi-user support, no penalty rates, foreign transactions, more

Posted:
in General Discussion edited March 28
While Apple News+ and Apple TV+ were the focus of Monday's "It's show time" event, Apple's first foray into the credit industry -- Apple Card -- arguably stole the show. Apple painted the product in broad strokes on stage and in its promotional material, but with a dearth of details, questions about the upcoming service remain.

Apple Card


TechCrunch's Matthew Panzarino addressed a few lingering questions and offered additional information on Apple Card's particulars in a report on Thursday.

Perhaps most interesting are specifics regarding general usability. For example, Apple Card does not support multiple users or shared cards, meaning cards are, at least at launch, designed to be used by only one person. Further, while foreign purchases do not incur a transaction fee, Mastercard determines the exchange rate.

Apple said Apple Card offers "lower rates" -- specifically variable APRs ranging from 13.24 to 24.24 percent -- based on credit history, but failed to specify how customers would fall into the rate spectrum. According to Panzarino, Apple will place users at the lower end of their respective rate tier, meaning users might save a few points.

As promised by Apple, Apple Card comes with no fees or penalties. This includes penalty rates for failure to pay off a balance on time. It should be noted that while Apple and Goldman Sachs do not charge fees or bump rates due to late payments, such action will negatively impact a user's credit score.

Security is obviously a main selling point, and to that end Apple is presenting a slew of features and capabilities unique to its platform. The card itself lacks any identifying markings, including a card number or traditional CVV. As can be expected, the physical card does have a number encoded into its magnetic stripe, but users will not have access to that information. Instead, the corresponding virtual card in the Wallet app only displays the last four digits of a user's personal account number.

When making purchases that require recitation of a card number, the app generates a virtual number and CVV. This process can be repeated manually if a user so chooses.

In addition, Goldman Sachs is disallowed from using customer data for external or internal advertising purposes, though the bank does need a slice of that information for internal reporting.

Finally, the physical card is activated through what appears to be an NFC tag that interacts with iPhone. That does not mean, however, that a physical Apple Card is compatible with touchless payments systems; the titanium card features a typical chip and mag stripe. Users who misplace their card can request a replacement for free.

Apple Card is slated to debut in the U.S. sometime this summer, with an international launch to follow.
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Comments

  • Reply 1 of 48
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    genovelleLordeHawkcornchipolsSoundJudgmentwlymlaytechracerhomie3repressthislostkiwi
  • Reply 2 of 48
    jbdragonjbdragon Posts: 2,135member
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    It's just you!

    But really, if the Credit Card number is always changing, how do you use it to pay some of your bills like Garbage, or Water, etc. How do you have automatic payments without going back to the site every month and enter a new token number?
    edited March 28 chemenginGeorgeBMacsandorlostkiwicurtis hannah
  • Reply 3 of 48
    cornchipcornchip Posts: 1,335member
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    LoL! I’m mildly interested… and I’ve never been interested in a CC ever. At all. Maybe that’s what you mean. 
    watto_cobra
  • Reply 4 of 48
    rob53rob53 Posts: 2,051member
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    I agree but I wish it wasn't backed by a MasterCard although that's what Costco uses in Canada (Visa in the US). I wish the Card wasn't associated with any credit card company. Why does there have to be a middle company? Why can't Goodman Sachs have their own bank card? I know it would be very difficult, time consuming, and expensive for Apple to be listed as a bank but why are there only a few credit card companies? Credit card readers (chip and magnetic) should be able to be programmed to go anywhere for banking/card information. Maybe it's time for Apple to really do something different and totally bypass the monopolistic credit card companies? Congress-people want to break up tech companies, what about breaking up the cartel of Visa, MasterCard, Amex, and Discover card?
    cornchipwatto_cobra
  • Reply 5 of 48
    Maybe this is a dumb question but how can it be secure if it has a mag stripe? That means it can be cloned like any other card and the number encoded on the stripe stolen?

    I suppose that number might be disposable in the sense they would issue you a new card without closing your account and opening a new one but I would prefer a card with no stripe. Swiping is becoming rare and I could always use a different card. 
    GeorgeBMacwatto_cobra
  • Reply 6 of 48
    lordpixel said:
    Maybe this is a dumb question but how can it be secure if it has a mag stripe? That means it can be cloned like any other card and the number encoded on the stripe stolen?

    I suppose that number might be disposable in the sense they would issue you a new card without closing your account and opening a new one but I would prefer a card with no stripe. Swiping is becoming rare and I could always use a different card. 
    You used to be able to peel the stripe off certain cards with a hair dryer and a x-acto knife.  You could always just rub a neodymium magnet across it, too.
    watto_cobra
  • Reply 7 of 48
    sirlance99sirlance99 Posts: 1,143member
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    Why? It’s a middle of the road type of card. I can literally beat the rewards with every purchase I make with my other cards. It’s ok for a general card but not the best by any stretch. 
    chemenginwilliamlondonsandor
  • Reply 8 of 48

    rob53 said:
    I agree but I wish it wasn't backed by a MasterCard although that's what Costco uses in Canada (Visa in the US). I wish the Card wasn't associated with any credit card company.
    That would mean you couldn't use it on any network, and there wouldn't be any infrastructure to handle payments and suchlike.  The last time someone invented something completely new like that was the Discover Card, and it was pretty useless in the first half-dozen years after it was introduced, even though it was backed by Sears and Dean Witter Reynolds.
    anantksundaramrepressthisrazorpitmike1randominternetpersonravnorodomrhinotuffsandorcurtis hannahwatto_cobra
  • Reply 9 of 48

    jbdragon said:
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    It's just you!

    But really, if the Credit Card number is always changing, how do you use it to pay some of your bills like Garbage, or Water, etc. How do you have automatic payments without going back to the site every month and enter a new token number?
    It doesn't constantly change.  The card number on the stripe is never divulged, except the last 4 digits.  In general, the card number given to you in the app is a virtual card number (as offered by other cards) that you can change any time, but it doesn't automatically roll.  I dunno if you can generate multiple virtual card numbers (which is handy for paying bills and suchlike) or if the previous numbers are invalidated when you create a new one.


    lostkiwiwatto_cobra
  • Reply 10 of 48
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    Why? It’s a middle of the road type of card. I can literally beat the rewards with every purchase I make with my other cards. It’s ok for a general card but not the best by any stretch. 
    This is Apple. Expect a + Version at some point.
  • Reply 11 of 48
    This is Apple. Expect a + Version at some point.
    Since credit is DEBT, maybe the "+" needs to be a "-".
    dedgeckobeowulfschmidtravnorodomlostkiwi
  • Reply 12 of 48
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    Would it be your first credit card?  I remember being excited for my first card back in '95.  Other than that, credit card are simple financial tools.  Some good, some not so much, and some should be avoided at all costs.

    But you're not alone.  There are a lot of people who seem excited about this card as if it's somehow different.  I don't get it, but I'm sorta old so what do I know.  
    GeorgeBMacwatto_cobra
  • Reply 13 of 48
    sflocalsflocal Posts: 4,652member
    jbdragon said:
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    It's just you!

    But really, if the Credit Card number is always changing, how do you use it to pay some of your bills like Garbage, or Water, etc. How do you have automatic payments without going back to the site every month and enter a new token number?
    The credit card number, along with expiration date and CV code is viewable within the wallet app in one's iPhone.  So one can still use that CC# to pay off utilities, etc...  nothing changes, but everything is much more secure.
    anantksundaramwatto_cobra
  • Reply 14 of 48
    mazda 3smazda 3s Posts: 1,572member
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    Why? It’s a middle of the road type of card. I can literally beat the rewards with every purchase I make with my other cards. It’s ok for a general card but not the best by any stretch. 
    Yeah, not seeing much of a benefit over my go-to rewards card: my Uber rewards card 

    No annual fee
    $50 in annual credit for digital services (Apple Music, Netflix, Spotify, etc)
    1% back on everything 
    2% on all online purchases
    3% back on travel/hotels 
    4% back on restaurants 
    No reward caps

    I never carry a balance so I rack up with this card. 
    repressthischemengin
  • Reply 15 of 48
    It is still a stupid credit card, with 15%+ interest rates!  For god’s sake don’t carry a balance.

    I love Apple products, but this is just another way to make it even easier to give them your money ߘ顠 Don’t get let them reel you in.

    https://youtu.be/e874AUNCJo0
    edited March 28 chemenginwilliamlondon
  • Reply 16 of 48
    jdwjdw Posts: 753member
    I was very excited about the Apple Card UNTIL I read on another site the Apple will require stupid Two-Factor Authentication to sign up. NO WAY! I hate 2FA. With 2 Apple IDs it's bothersome to say the least, but there are times when I access a computer and don't have my iPhone with me. Great for those of you who like the bother, but for me, that's an Apple Card deal-breaker. Quite sad too! Tim [email protected]#
  • Reply 17 of 48
    laytechlaytech Posts: 145member
    I just want frequent flyer points like those offered by Amex to make this my card of choice over any other. Regardless, I will be getting one, but it may not be the first I reach for... that is of course, when it arrives in Australia, which could be a very long wait if ApplePay is anything to go by.
    watto_cobra
  • Reply 18 of 48
    mac_128mac_128 Posts: 3,448member
    sflocal said:
    jbdragon said:
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    It's just you!

    But really, if the Credit Card number is always changing, how do you use it to pay some of your bills like Garbage, or Water, etc. How do you have automatic payments without going back to the site every month and enter a new token number?
    The credit card number, along with expiration date and CV code is viewable within the wallet app in one's iPhone.  So one can still use that CC# to pay off utilities, etc...  nothing changes, but everything is much more secure.
    Did you read the article? That’s not what it says:

    the physical card does have a number encoded into its magnetic stripe, but users will not have access to that information. Instead, the corresponding virtual card in the Wallet app only displays the last four digits of a user's personal account number.  

    When making purchases that require recitation of a card number, the app generates a virtual number and CVV. This process can be repeated manually if a user so chooses. 
    GeorgeBMacwatto_cobra
  • Reply 19 of 48
    mac_128mac_128 Posts: 3,448member

    jbdragon said:
    insync88 said:
    I don’t know if it’s just me....But I’ve never been this excited for a credit card before 
    It's just you!

    But really, if the Credit Card number is always changing, how do you use it to pay some of your bills like Garbage, or Water, etc. How do you have automatic payments without going back to the site every month and enter a new token number?
    My understanding of how this works on other cards that have offered random numbers, is that they are active until revoked. I believe the idea is that every merchant has a different card number, so in the event of a breach of their data and your card number is stolen, it’s tied to that transaction and not authorized for use anywhere else. The way it is now, is your master number is held by dozens of merchants, stealing it from any one of them gives an active card access to anyone who posses it.
    edited March 28 lostkiwiwatto_cobra
  • Reply 20 of 48
    slurpyslurpy Posts: 5,154member
    It is still a stupid credit card, with 15%+ interest rates!  For god’s sake don’t carry a balance.

    I love Apple products, but this is just another way to make it even easier to give them your money ߘ顠 Don’t get let them reel you in.

    https://youtu.be/e874AUNCJo0

    Please explain to use how Apple is "taking your money" with this credit card? In detail, I'd LOVE to know. 

    So much stupidity here. And yeah, we all know Dave Ramsey's religiously against credit cards, because most of his fans are too damn idiotic to know how to use one responsibly. The vast majority of people in 1st world countries use credit cards, that's a fact. If Apple provides a better CC, what's the issue? 

    Oh, and will patiently wait for your elaboration on how Apple makes money with this credit card. 
    repressthismacguiStrangeDayswatto_cobra
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