I don't know Jack about this area but why can't Apple fund its own card? Why do they need anyone to help them with this? Just make that a new part of the biz and forget these banks who are giant losers. They just don't care the same way Apple does...
I don't know Jack about this area but why can't Apple fund its own card? Why do they need anyone to help them with this? Just make that a new part of the biz and forget these banks who are giant losers. They just don't care the same way Apple does...
It's not about funding, it's about being a financial institution. As you can see from the growing pains with GS who has a long history of financial services but has never issued a CC, it's not easy. That isn't to say that it's not something Apple will ever consider, but if they do I'm guessing it'll be a subsidiary company they either start from the ground up or, more likely, purchase for a song and build into for their own needs.
Probably because banks make money on credit cards by charging late fees and high interest on customers who carry large balances and make the minimum payment. Keep in mind, that a bank pays a fee to the company who processes the credit card transaction which in this case is Mastercard. Many Apple customers are more financially well-off and pay their entire balance off on-time. Good for Apple because of the incentives customers get on Apple products, but not so good for Goldman Sachs which likely loses money on every transaction.
That would be my guess too. I've never carried a balance on any credit card into the next month in over fifty years.
Goldman Sachs also badly managed the card. They made it impossible to use financial management apps like Quicken, let alone Quickbooks, or even to view activity on the web. Big spenders need those abilities. And Goldman hasn’t taken much advantage of the benefits of being iPhone-centric. How about free Apple products, or at least swag for good customers? Free AirTag holders, which cost next to nothing. It comes off as amateur hour, with a pretty interface.
Most people don’t want to hassle with managing a card with a proprietary, annoying, interface.
Apple Card isn't for "most people." But for the rest of us, it's very desirable.
I had expected it would be, but I declined their card offer. The terms weren't good compared to other cards in my wallet.
I can't resist... "So what's in your wallet?" Haha.
Do you carry the debt over into the next month? Maybe that makes a difference. I confess I only have three cards, my Amex and my Apple Card, and a SouthWest Chase, which is tied to Jaguar USA. My wife, on the other hand, won a competition on a flight once for who had the most credit cards! LOL.
I am a proud deadbeat + freeloader. Not only do I pay my balance off every month and pay 0 interest to the blood-suckers, I get about $1k / year in cash back from all my purchases.
Us too. But get an Amazon Prime card. We get 5 times that (although in Amazon credits, all of which get spent).
Good for you, great idea; my wife does the same. What was life like pre-Amazon? I can barely remember.
I don't know Jack about this area but why can't Apple fund its own card? Why do they need anyone to help them with this? Just make that a new part of the biz and forget these banks who are giant losers. They just don't care the same way Apple does...
I agree. Like how Apple started its own music label business: iTunes. Why not? The goal is to sell Apple products, not making money off credit card fees. I think Apple is using GS to test the water.
Apple wants to be in the banking business so now is the time to either start one or buy one. When the Car comes around, having their own GMAC-type in house financing will be a boon.
An Apple car when stuff like this is why no automaker is ever going to partner with Apple? This was heavily discussed back in 2020-2021 when Apple was actively seeking partners but found no takers with (of course off-the-record) comments like "we aren't Foxconn" and "Apple's terms would drive us out of business" being bandied about. View the archives for a recollection. It is precisely because of experiences like this that only companies that are going to deal with Apple are those with the experience and leverage to negotiate deals that will allow them to actually make money directly (Samsung, Intel, Qualcomm) or resell what they develop for Apple to other companies and/or use in their own products (Intel, Samsung, Qualcomm) and/or have lawyers good enough to keep Apple in line if Apple tries to change terms mid-contract (Qualcomm).
By the way as for the people saying "don't feel bad for Goldman Sachs as they are a scummy company anyway and they are big enough to lose the money ... yeah pretending as if Sachs is just going to eat these losses instead of passing them onto their customers - which will be even smaller players who can ill afford it - is just being willfully myopic.
I don't know Jack about this area but why can't Apple fund its own card? Why do they need anyone to help them with this? Just make that a new part of the biz and forget these banks who are giant losers. They just don't care the same way Apple does...
I agree. Like how Apple started its own music label business: iTunes. Why not? The goal is to sell Apple products, not making money off credit card fees. I think Apple is using GS to test the water.
Apple started its own music label? That's news to me. I thought they were simply a retail outlet and weren't signing musicians.
Probably because banks make money on credit cards by charging late fees and high interest on customers who carry large balances and make the minimum payment. Keep in mind, that a bank pays a fee to the company who processes the credit card transaction which in this case is Mastercard. Many Apple customers are more financially well-off and pay their entire balance off on-time. Good for Apple because of the incentives customers get on Apple products, but not so good for Goldman Sachs which likely loses money on every transaction.
I pay my account in full every month and use the 2% to my benefit instead of the banks.
LOL!!! Too many cardholders paying off their balances every month (you get alerts to pay in your wallet). 2% discount on ApplePay. 3% for using ApplePay on Apple products.
Apple Card doesn’t charge users any fees other than interest. Whereas other card companies nickel and dime with things like late fees and foreign transaction fees, Apple Card does not. Add to that $350 per customer acquisition cost mentioned in the article.
Don't cry for Goldman Sachs, America. From their 2022 yearly report, and I quote: "Net revenues were $47.4 billion, net earnings were $11.3 billion and diluted earnings per common share were $30.06." Contrastingly, Apple in 2022 reported net revenues of $94.84 billion. net earnings of $24.16 billion, but diluted earnings of only $1.52 per common share. Of course there are far more shares outstanding at Apple.
I do not understand the role of Goldman Sachs as the bank for Apple Card. Apple Card is a credit card the transactions is handled by MasterCard. So what is the role of Goldman Sachs?
LOL!!! Too many cardholders paying off their balances every month (you get alerts to pay in your wallet). 2% discount on ApplePay. 3% for using ApplePay on Apple products.
Apple Card doesn’t charge users any fees other than interest. Whereas other card companies nickel and dime with things like late fees and foreign transaction fees, Apple Card does not. Add to that $350 per customer acquisition cost mentioned in the article.
Don't cry for Goldman Sachs, America. From their 2022 yearly report, and I quote: "Net revenues were $47.4 billion, net earnings were $11.3 billion and diluted earnings per common share were $30.06." Contrastingly, Apple in 2022 reported net revenues of $94.84 billion. net earnings of $24.16 billion, but diluted earnings of only $1.52 per common share. Of course there are far more shares outstanding at Apple.
I do not understand the role of Goldman Sachs as the bank for Apple Card. Apple Card is a credit card the transactions is handled by MasterCard. So what is the role of Goldman Sachs?
I am a proud deadbeat + freeloader. Not only do I pay my balance off every month and pay 0 interest to the blood-suckers, I get about $1k / year in cash back from all my purchases.
Us too. But get an Amazon Prime card. We get 5 times that (although in Amazon credits, all of which get spent).
Yes one of my credit cards is Amazon Chase, but how are you getting 5x? It is 3% on Amazon/ Whole Foods purchases, 2% restaurants, and 1% everything else. (Used to be 3% grocery purchases at any grocery store but I refuse to shop at WF)
LOL!!! Too many cardholders paying off their balances every month (you get alerts to pay in your wallet). 2% discount on ApplePay. 3% for using ApplePay on Apple products.
Apple Card doesn’t charge users any fees other than interest. Whereas other card companies nickel and dime with things like late fees and foreign transaction fees, Apple Card does not. Add to that $350 per customer acquisition cost mentioned in the article.
Don't cry for Goldman Sachs, America. From their 2022 yearly report, and I quote: "Net revenues were $47.4 billion, net earnings were $11.3 billion and diluted earnings per common share were $30.06." Contrastingly, Apple in 2022 reported net revenues of $94.84 billion. net earnings of $24.16 billion, but diluted earnings of only $1.52 per common share. Of course there are far more shares outstanding at Apple.
I do not understand the role of Goldman Sachs as the bank for Apple Card. Apple Card is a credit card the transactions is handled by MasterCard. So what is the role of Goldman Sachs?
Let me walk you through this.
Do you have any credit or debit card? Of course you do.
Do you see Mastercard or Visa on those card? Of course you do.
Do you also see a bank on there? Of course you do.
Well there you go. It is the financial institutions that issue and distribute credit and debit cards. It's the job of MC and Visa to be the payment networks to facilitate the processing of payments between your bank and the merchant.
Us too. But get an Amazon Prime card. We get 5 times that (although in Amazon credits, all of which get spent).
If at all possible I refuse to do business with Amazon. Deceptive business practices. Screws suppliers. False advertising. Rips off successful products with "Amazon Basics" and then ranks their products higher in search. Refuses to crack down on fake reviews. Refuses to crack down on "me too" Chinese ripoffs. Refuses to pay adequate wages to workers...
The list goes on and on.
And since more and more web sites now take Apple Pay, it's much, much easier to do business with the people who actually make the products without going through the hassle of setting up new accounts Nor do I need to worry about sharing card details with yet another company who may have questionable security practices.
Us too. But get an Amazon Prime card. We get 5 times that (although in Amazon credits, all of which get spent).
If at all possible I refuse to do business with Amazon. Deceptive business practices. Screws suppliers. False advertising. Rips off successful products with "Amazon Basics" and then ranks their products higher in search. Refuses to crack down on fake reviews. Refuses to crack down on "me too" Chinese ripoffs. Refuses to pay adequate wages to workers...
The list goes on and on.
And since more and more web sites now take Apple Pay, it's much, much easier to do business with the people who actually make the products without going through the hassle of setting up new accounts Nor do I need to worry about sharing card details with yet another company who may have questionable security practices.
I often don't succeed because no one is able to do what Amazon can do, but I do try to avoid using Amazon.
I had expected it would be, but I declined their card offer. The terms weren't good compared to other cards in my wallet.
The APR is high, but as I'm one of those deadbeats who pays the card off each and every month that doesn't matter. Besides, doesn't make sense to get cash back and then hand it right back in interest fees.
Goldman Sachs also badly managed the card. They made it impossible to use financial management apps like Quicken, let alone Quickbooks, or even to view activity on the web. Big spenders need those abilities. And Goldman hasn’t taken much advantage of the benefits of being iPhone-centric. How about free Apple products, or at least swag for good customers? Free AirTag holders, which cost next to nothing. It comes off as amateur hour, with a pretty interface.
Most people don’t want to hassle with managing a card with a proprietary, annoying, interface.
Apple Card isn't for "most people." But for the rest of us, it's very desirable.
I had expected it would be, but I declined their card offer. The terms weren't good compared to other cards in my wallet.
What other card do you have that gives you 3% back (or more) on Apple purchases plus 0% financing?
You can easily purchase Apple products on Amazon for 5% off with the Amazon credit cards.
I am a proud deadbeat + freeloader. Not only do I pay my balance off every month and pay 0 interest to the blood-suckers, I get about $1k / year in cash back from all my purchases.
Us too. But get an Amazon Prime card. We get 5 times that (although in Amazon credits, all of which get spent).
Yes one of my credit cards is Amazon Chase, but how are you getting 5x? It is 3% on Amazon/ Whole Foods purchases, 2% restaurants, and 1% everything else. (Used to be 3% grocery purchases at any grocery store but I refuse to shop at WF)
You probably have the regular Amazon Visa. The Prime Amazon Visa is 5% back.
Goldman Sachs also badly managed the card. They made it impossible to use financial management apps like Quicken, let alone Quickbooks, or even to view activity on the web. Big spenders need those abilities. And Goldman hasn’t taken much advantage of the benefits of being iPhone-centric. How about free Apple products, or at least swag for good customers? Free AirTag holders, which cost next to nothing. It comes off as amateur hour, with a pretty interface.
Most people don’t want to hassle with managing a card with a proprietary, annoying, interface.
Apple Card isn't for "most people." But for the rest of us, it's very desirable.
I had expected it would be, but I declined their card offer. The terms weren't good compared to other cards in my wallet.
What other card do you have that gives you 3% back (or more) on Apple purchases plus 0% financing?
You can easily purchase Apple products on Amazon for 5% off with the Amazon credit cards.
Which is less than what I get from Apple with a student/educators discount + 3% cash back + 0% financing for 12 to 24 months + not giving money to Amazon.
Additionally, Amazon and other general retailers usually only have only the bae models for sale, and I like to max out my RAM when it comes to my Macs for obvious reasons so a BTO (build-to-order) )option from apple.com is usually the way to go. B&H and other tech-focused resellers will often have pre-made BTO Macs with additional RAM and storage with a better discount than what Amazon offers customers, but then I'm not using getting my student/educator discount, getting 3% back from buying via Apple, and would have to use a different party if I wanted to do a 0% financing which means unlocking credit, applying, and then setting up a separate payee system which I don't want to do.
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Do you carry the debt over into the next month? Maybe that makes a difference. I confess I only have three cards, my Amex and my Apple Card, and a SouthWest Chase, which is tied to Jaguar USA. My wife, on the other hand, won a competition on a flight once for who had the most credit cards! LOL.
By the way as for the people saying "don't feel bad for Goldman Sachs as they are a scummy company anyway and they are big enough to lose the money ... yeah pretending as if Sachs is just going to eat these losses instead of passing them onto their customers - which will be even smaller players who can ill afford it - is just being willfully myopic.
Do you have any credit or debit card? Of course you do.
Do you see Mastercard or Visa on those card? Of course you do.
Do you also see a bank on there? Of course you do.
Well there you go. It is the financial institutions that issue and distribute credit and debit cards. It's the job of MC and Visa to be the payment networks to facilitate the processing of payments between your bank and the merchant.
The list goes on and on.
Additionally, Amazon and other general retailers usually only have only the bae models for sale, and I like to max out my RAM when it comes to my Macs for obvious reasons so a BTO (build-to-order) )option from apple.com is usually the way to go. B&H and other tech-focused resellers will often have pre-made BTO Macs with additional RAM and storage with a better discount than what Amazon offers customers, but then I'm not using getting my student/educator discount, getting 3% back from buying via Apple, and would have to use a different party if I wanted to do a 0% financing which means unlocking credit, applying, and then setting up a separate payee system which I don't want to do.