Oh, and will patiently wait for your elaboration on how Apple makes money with this credit card.
Does that mean you think Apple is getting into the credit card business to NOT make money? I mean, come on, of course they’re making money on this card. None of us knows how. They make money on every Apple Pay transaction, so it stands to reason they’re getting a chunk of each card transaction’s swipe fee, or something like that.
Between getting into the credit card business, that awful “if you subscribed to each of these separately, you’d pay over $8000, but with Apple News+, you get it all for $9.99” infomercial sales pitch, and a confusing product line, things are starting to look more and more like 1995 again.
Maybe this is a dumb question but how can it be secure if it has a mag stripe?
Good question. The answer is probably the same as with modern "chip" cards, and that is "the mag stripe doesn't have all the information needed to complete a transaction." Certainly the Apple Card won't!
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.
"Best" is wildly subjective, and depends on what you're looking at, or for. You're completely correct that there are cards with better rewards -- but very few of them have no annual fee, for starters. Then take a look at the all other fees most cards charge or rate hikes if you're late with a payment etc, and the money you actually save over the course of a year with the Apple Card may start to really add up to a good deal more than you're getting from that "more rewards" card.
That said, if your goal is free air travel then there are cards that are more focused on that (or whatever the specific reward you want is).
For people who want some rewards with no annual fee for just having it -- and no hidden fees for other things -- the Apple Card looks pretty attractive, particularly from a security standpoint.
Oh, and will patiently wait for your elaboration on how Apple makes money with this credit card.
Does that mean you think Apple is getting into the credit card business to NOT make money? I mean, come on, of course they’re making money on this card. None of us knows how. They make money on every Apple Pay transaction, so it stands to reason they’re getting a chunk of each card transaction’s swipe fee, or something like that.
Between getting into the credit card business, that awful “if you subscribed to each of these separately, you’d pay over $8000, but with Apple News+, you get it all for $9.99” infomercial sales pitch, and a confusing product line, things are starting to look more and more like 1995 again.
Could you imagine if John Sculley had marketed Apple branded cola?
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.
I looked into virtual credit cards last year after discovering fraud on my debit card. Supposedly using virtual cards can complicate getting refunds on returns since the number expires.
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 Cook!!!!@#
I hate 2FA but because of HomePod I have to get it and until now it doesn’t give me any problem.
So I'm game for Apple Card when it’s launched outside USA.
Strange Apple uses GS bank instead of becoming a bank itself. 200 billion in cash even burning it at incredible rates doesn’t make a dent in it - surely qualifies it as a bank already. If I recall correctly, GS is a bunch of assholes ...
Strange Apple uses GS bank instead of becoming a bank itself.
Not strange at all. To become a bank, Apple would fall into a whole new bag of regulatory scrutiny hurt. I can't think Cook would welcome that. Not that he has anything to hide, just that it's more administrative stuff to deal with.
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.
I remember that. Seems like ApplePay is accepted in more places than Discover was at it’s same period of life.
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?
I suspect (but don't know for sure) but that a legal bank has to be part of the loop due to federal banking regulations. Otherwise, you or I could start issuing our own credit cards. .... Mine offers 10% cash back and no fees or interest -- ever.
The Fintech industry is reportedly trying to loosen up those regulations.
A card usable in Family Sharing -- Or, even better, the ability to provide AppleCash to family members under Family Sharing.
... But I suspect Apple would have to be a bank in order to do such things.
In any case, there is a need for young family members to have access to Apple Wallet without having their own credit or debit cards. So far, the only thing I've seen are prepaid debit cards -- but I don't think they would be activated under ApplePay.
Oh, and will patiently wait for your elaboration on how Apple makes money with this credit card.
Does that mean you think Apple is getting into the credit card business to NOT make money? I mean, come on, of course they’re making money on this card. None of us knows how. They make money on every Apple Pay transaction, so it stands to reason they’re getting a chunk of each card transaction’s swipe fee, or something like that.
Between getting into the credit card business, that awful “if you subscribed to each of these separately, you’d pay over $8000, but with Apple News+, you get it all for $9.99” infomercial sales pitch, and a confusing product line, things are starting to look more and more like 1995 again.
Remember the tag line ‘there’s an app for that’? Well Apple’s new tag line seems to be ‘there’s a service for that’.
Apple will make money on this new apple card business.
Apple's intent is push out more Apple products not make money on fees and interest.
Currently you can buys interest free Apple products with Barclay card.
Now Apple card gives you 3% back on same day instead interest free.
This Apple card has less rewards because there is no fee and low interest rate. Most of credit cards have high reward because it has fees and high interest rates.
If you are carefully manage your cards then your reward will decrease by fess and interest payment.
Good part is any transaction you made with Apple pay will gives you 2%.
Most of no annual fee cards has 2% rewards apply on specific transaction.
So if your card gives you 2-3% rewards on restaurant then use that cards. But buying something at CVS and your card gives you 1% and if CVS takes Apple pay then you use Apple pay to get 2% rewards.
If Apple gives you titanium card with less than $50 then I will get that card as well.. It just look nice..
Since new iPad mini & air has A12, I guess next year Apple will introduce POS for small business as instant money transaction on their Apply cash.
Square needs to be concern for this..
If you are not savvy about credit card rewards then Apple card is not that bad.. Specially you forget to pay on time.(I think lots of people pay late fees.)
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
It does not have a mag stripe. Only a chip. The article was incorrect.
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?
Credit cards involve several networks of middlemen.
First, you have the terminal vendor. They sell the physical device, and write the software determining how it can connect upstream. Second, you may have an aggregator which takes the data from the terminals and kind of bundles it together. This lets you run transactions from a lot of stores over a smaller number of dedicated links. Third, you have the payment processor. These accept connections from many terminal vendors or aggregators and let each of them talk to a card brand with a similar interface. Fourth, you have the card brands (Visa, MasterCard, American Express, &c.). Fifth, you have the backing banks.
Some of these can be combined, of course. As an example, Square provides their own terminals and their own payment processing. Their terminals only work with their processing network, and their processing network only accepts transactions from their terminals.
The card brands exist because each backing bank has their own systems for transaction processing and settlement. The card brand has negotiated details with the bank, and they have sort of conversion software to accept transactions in one format, then send them to the bank in whatever specific format the bank wants. The card brands all have different formats they want, so the payment processors give you one transaction format which the processor will convert to deal with many card brands. Then the aggregators or terminal vendors let you talk to multiple payment processors so if you don't like one, you can switch.
It's all a nightmare held together with baling wire and tape. Not using MasterCard would involve negotiating transaction processing with about 30 payment processors, and Walmart (as an example, since they run their own payment processor) could just refuse to support the card. By using an existing card brand, they guarantee compatibility with existing stores with no changes.
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
It does not have a mag stripe. Only a chip. The article was incorrect.
You are the only one saying that AFAICT. Ars, Techcrunch and AI all agree it has one.
The physical Apple Card, of course, has no number. The app displays the last 4 digits of the card number that is on the mag stripe of the card only, you never see the full card number.
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.
The magnetic stripe on most credit cards is what's called a "high-coercivity" stripe. It would take an 8000 Oe magnetic field at minimum to effectively erase it. Most neodymium magnets aren't that strong. Probably would be easier to heat the card up to the stripe's Curie temperature, at which point its magnetic domains get randomized. Of course, that would also probably destroy the chip.
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.
I remember that. Seems like ApplePay is accepted in more places than Discover was at it’s same period of life.
ApplePay uses NFC services which uses Visa, Mastercard, American Express or Discover still. It’s the same with just a different way of paying. The background is all the same.
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.
I remember that. Seems like ApplePay is accepted in more places than Discover was at it’s same period of life.
ApplePay uses NFC services which uses Visa, Mastercard, American Express or Discover still. It’s the same with just a different way of paying. The background is all the same.
Correct.
My British Airways credit card has had NFC built into it for a while now.
Works on any NFC terminal, can pay on the tube with it, etc.
Next iteration apparently has NFC & a finger print reader in the card...
Oh, and will patiently wait for your elaboration on how Apple makes money with this credit card.
Does that mean you think Apple is getting into the credit card business to NOT make money? I mean, come on, of course they’re making money on this card. None of us knows how. They make money on every Apple Pay transaction, so it stands to reason they’re getting a chunk of each card transaction’s swipe fee, or something like that.
Between getting into the credit card business, that awful “if you subscribed to each of these separately, you’d pay over $8000, but with Apple News+, you get it all for $9.99” infomercial sales pitch, and a confusing product line, things are starting to look more and more like 1995 again.
Remember the tag line ‘there’s an app for that’? Well Apple’s new tag line seems to be ‘there’s a service for that’.
If service you mean cloud data, music, tv shows, or games. And what of it? People like you complained they were too dependent on iphone/hardware sales, why not offer additional revenue streams? You act as if having optional services is some sort of bad thing. It isn’t.
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Between getting into the credit card business, that awful “if you subscribed to each of these separately, you’d pay over $8000, but with Apple News+, you get it all for $9.99” infomercial sales pitch, and a confusing product line, things are starting to look more and more like 1995 again.
That said, if your goal is free air travel then there are cards that are more focused on that (or whatever the specific reward you want is).
For people who want some rewards with no annual fee for just having it -- and no hidden fees for other things -- the Apple Card looks pretty attractive, particularly from a security standpoint.
So I'm game for Apple Card when it’s launched outside USA.
If I recall correctly, GS is a bunch of assholes ...
Otherwise, you or I could start issuing our own credit cards.
.... Mine offers 10% cash back and no fees or interest -- ever.
The Fintech industry is reportedly trying to loosen up those regulations.
In any case, there is a need for young family members to have access to Apple Wallet without having their own credit or debit cards. So far, the only thing I've seen are prepaid debit cards -- but I don't think they would be activated under ApplePay.
First, you have the terminal vendor. They sell the physical device, and write the software determining how it can connect upstream.
Second, you may have an aggregator which takes the data from the terminals and kind of bundles it together. This lets you run transactions from a lot of stores over a smaller number of dedicated links.
Third, you have the payment processor. These accept connections from many terminal vendors or aggregators and let each of them talk to a card brand with a similar interface.
Fourth, you have the card brands (Visa, MasterCard, American Express, &c.).
Fifth, you have the backing banks.
Some of these can be combined, of course. As an example, Square provides their own terminals and their own payment processing. Their terminals only work with their processing network, and their processing network only accepts transactions from their terminals.
The card brands exist because each backing bank has their own systems for transaction processing and settlement. The card brand has negotiated details with the bank, and they have sort of conversion software to accept transactions in one format, then send them to the bank in whatever specific format the bank wants. The card brands all have different formats they want, so the payment processors give you one transaction format which the processor will convert to deal with many card brands. Then the aggregators or terminal vendors let you talk to multiple payment processors so if you don't like one, you can switch.
It's all a nightmare held together with baling wire and tape. Not using MasterCard would involve negotiating transaction processing with about 30 payment processors, and Walmart (as an example, since they run their own payment processor) could just refuse to support the card. By using an existing card brand, they guarantee compatibility with existing stores with no changes.
- The physical Apple Card, of course, has no number. The app displays the last 4 digits of the card number that is on the mag stripe of the card only, you never see the full card number.
https://techcrunch.com/2019/03/28/how-apple-card-works/The magnetic stripe on most credit cards is what's called a "high-coercivity" stripe. It would take an 8000 Oe magnetic field at minimum to effectively erase it. Most neodymium magnets aren't that strong. Probably would be easier to heat the card up to the stripe's Curie temperature, at which point its magnetic domains get randomized. Of course, that would also probably destroy the chip.