Posted by Chuck on August 20, 2019
Credit Cards

Published on August 20th, 2019 | by Chuck

186

Apple Credit Card Full Details – 3% at Apple & Uber, 2% with Apple Pay, 1% with Physical Card; No Fees

Update 8/20/19: Apple Card is now publicly live for anyone with an update iPhone (requires iPhone 6 or later).

Update 8/7/19: Readers are reporting no hard pull is done if you’ve been invited to apply for the card. Update #2: Many readers are now saying that a hard pull is, in fact, done (Transunion), and a frozen credit report will impede the application.

Update 8/6/19: Apple card is now live for select early adapters and media members. It’s expected to roll out publicly within the next few weeks.

Update 6/22/19: Apple employees have been able to apply for the card for some time, cards have now been shipped out to some employees. More details can be found here.

[5/13/19: Added an image of the card at the end of this post.]

At the Apple Event today, they unveiled full details on the release of the impending Apple credit card which we’ve covered before. The card is called Apple Card and will become available this summer. The Apple launch video can be found below.

Apple Card

Direct Link to Apple Card

The new Apple Card is issued by Goldman Sachs and will run on the Mastercard network. The card runs entirely through Apple Pay, and I’m not sure it’s possible to signup for the card if you don’t have an iPhone.

Card will earn the following rewards:

There’s no limit to how much rewards you can earn.

No mention of a signup bonus, but we’ll have to wait until launch to see if they offer a little something (they’ve already said previously that there was no plans on a big bonus).

 

Card Details

  • No annual fee
  • No foreign transaction fee
  • No cash advance fees
  • No late payment fees (late or missed payments will result in additional interest accumulating toward your balance)
  • No over-the-limit fees, no balance transfer fees, no expedited card delivery fee
  • Variable interest rates (as of March 2019: APRs range from 13.24% to 24.24% based on creditworthiness). No penalty interest rates, even if you miss a payment.
  • Card instantly available upon signup for use with Apple Pay; physical card will come later, but most stores accept Apple Pay making it another one in the list of cards instantly available upon approval.
  • Physical card is made from titanium laser etched with your name. There will be no card number, no expiration date, and no signature on the card.
  • Cash back is issued daily to your Apple Cash card and can be used immediately to buy something, pay your bill, send to a friend via iMessage, or transfer to your bank.
  • Customer service via text from your iPhone
  • Organization tools to clearly show your spending totals and more
  • No word on whether there’ll be any sort of protections, like purchases protection, return protection, car rental insurance, etc.
  • For apps and website use, there’s a virtual card number in the Wallet app. It autofills for you when you’re using Safari. It’s not clear in the presentation or on the apple site whether transactions made with this card number are like Apple Pay transactions which earn 2% or like physical card transactions which earn 1%.

Our Verdict

It’s basically another 2% card, but only for Apple Pay transactions (and possibly for purchases with the keyed-in number from the app, see above). Most stores accept Apple Pay; depending where you shop, the 2% earn rate may apply for most of your purchases.

Going through the fine details, it does come out at the top of the pack due to the lack of foreign transaction fees, lack of cash advance fees (makes it safe for bank funding and the like), and the fact that the cash back is instantly available.

And of course, you’re dealing with the Apple brand – I have to admit that Apple does a good job at introducing it like a revolutionary thing. In reality, it’s numerous tweaks to a regular 2% card (privacy, transaction clarity, text customer service, no card number etc). Seems pretty cool overall, to be honest, and especially useful for international purchases.

The biggest limiter of the card is that it’s only for iPhone users. And some people prefer to just swipe a physical card – that will only get you 1% rewards. There may be some stores or websites where Apple Pay doesn’t work, and in these cases you are limited to 1% rewards.

For someone, who anyway uses Apple Pay for most transactions, and who anyway uses a 2% card, I’d say this card is a go. Otherwise, it’s still another 2% card added to the market, and one with no annual fee and no foreign transaction fees. Check out this follow-up post for Five Better Alternatives To The New Apple Credit Card.

Here’s an image of the card:



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Casual Churner
Casual Churner

Factoring in 5/24, 6/24, value of hard pull, etc., unless there’s a decent sign up bonus i can hardly imagine this card would create a huge buzz like when CSR was first introduced. I for one would not be tempted to apply.

Burton
Burton

Never underestimate the desire of the billion Apple users to buy things made/promoted by Apple even if they are basically the same as products already on the market.

LC
LC

yep, thats america – uninformed buyers!

Celia
Celia

I can agree to an extent. I am a full Apple user from iPhone to iPad to ATV to my desktops and laptops. But I won’t get the card unless there’s a sign up bonus. 90% of my AP purchases are for dining or grocery, both of which I get more than 2% on with other cards. As for Apple purchases, I would jump on it normally but I can usually get a better deal than 3% on my Apple purchases.

Quomier
Quomier

Literally none of that is true lmao

JMR0303
JMR0303

To be completely honest, there are very few other no-FTF credit cards out there with no *cash advance* fee. It’s good to have as a last resort when traveling, if nothing else.

MrObvious
MrObvious

CSR really only created a buzz within this community. Yes, it made broader news a couple times, but it wasn’t really Earth shattering. Most people heard the annual fee and ran. Because this comes from Apple, millions will have their guard down and be mesmerized by what is really, again, not Earth shattering.

CJ
CJ

It looks like a whole lot of nothing. A 2% card only if using ApplePay; otherwise, a run-of-the-mill 1%.

Kevin Nguyen
Kevin Nguyen

So I can’t ditch the Fidelity rewards card just yet?

Zack
Zack

I would ditch my Fidelity for just about anything

Christian

How about the Paypal 2% card? Fidelity and Citi didn’t want me so I settled with the Paypal 2%. Can’t see any difference when paying in full every month.

Rob
Rob

I don’t know why people use this over the double cash. Citi’s price protection can’t be beat and you can easily get $1000 yr from it. Case in point: I bought a pair of pants for $60 at the mall. I price matched it with the same brand but an ugly color that was on clearance for $21 on some random website. They honored it

LG
LG

Easy, no forex. I have double cash and it’s pointless in Europe. A true 2% is Penfed. Not this crap double cash where you get the second percent when you pay off and there are forex fees

TB
TB

price protection is going away in September 2019.

Chucks
Chucks

The neater trick is stacking price protection with return protection. You can buy something on, say, Amazon, use it for a few weeks, then return it on Amazon AND file a return protection claim. Often the return protection claim will just cut you a check for the value of the item without asking for the item back. Oh, and then the item will drop in price so you can file a price protection claim on the item even if you don’t still have it. The end result is you end up earning more than the value of the item.

You certainly can’t guarantee all of the bits and pieces will fall into place, and certainly can’t go about buying and returning tons of items on Amazon all the time, but there are plenty of times this has just occurred from organic Amazon shopping behavior.

I share this because all this is disappearing soon so oh well.

Jack
Jack

And that is fraud, plain and simple.

Dubya
Dubya

And that’s why they dropping these benefits left and right. Price protection has already been dropped.

People defraud the system and ruin it for the rest of us.

Davif
Davif

Better off with the Penfed Credit Union Power cash Visa credit card…

Ken
Ken

PayPal 2% card anyone? The most underrated card of all time

Jeremy
Jeremy

Don’t know about it being the most underrated. SDFCU Premium Cash back+ offers the same benefits. If you buy a lot outside of domestic, I’d go for either Paypal or SDFCU (my preference). If you stay domestic, I’d pick Citi Double for the price protection. You could swap Fidelity if you prefer their ecosystem, but Citi has better benefits.

What I use for non-bonused spend when not working on sign-up bonuses? Either Amex Blue Business Plus or BoA Premium Rewards with Preferred Rewards. Another option for people who fly Southwest (WN) a lot is one of their cards, because if you use the companion pass it winds up being about 3.2% (1.6 cents/point times 2). After you hit the spend for companion pass though, I’d switch back.

Abe
Abe

@ Ken Yes I prefer PayPal 2% over the Citi Double Cash because it has no foreign transaction fees and no minimum redemption.

hey
hey

i like it

JW
JW

So glad to hear others are unimpressed with the subpar Fidelity card. I love Fidelity Investments, but this alliance with Elan/US Bank is awful. Twice now, I’ve had “spend and get” bonuses that were never paid and required multiple calls to resolve. Don’t even get me started on that rudimentary website. I love the simple 2%, but that simply isn’t worth the hassle of dealing with Elan.

Random Reader
Random Reader

Agree. Fidelity needs to find a new partner, or stand it up themselves.

Avi
Avi

I thought I heard them say during the event that the card number, etc. would be available inside of the Apple Wallet app if you need it (likely so it can be used for online transactions). I’m most curious if the physical card uses PIN as the Primary CVM on the chip since they advertise no signature. With only a handful of cards in the US offering Primary PIN, another one would be more than welcome.

Without PIN being primary, it might be difficult to use the physical card overseas, where it’s far more likely for them to look at the Signature than in the US.

Jags
Jags

You’re not required to sign for any transactions anymore on any card… Smart to advertise something that is a available on every single card but no one points out.

K-Man
K-Man

That’s not what Avi is saying. If you use your US card in Europe they will require a signature and they WILL check the signature on your card if your card isn’t PIN first.

Andrey
Andrey

Actually, they almost never require a signature, unless it is a major purchase. And they never check it on the card.

Peter Lobl
Peter Lobl

in germany, with chip cards from usa, i always have to sign. with apple pay (in watch) no sig needed.

Charlie
Charlie

If the card is PIN primary, I’ll get it.

Adam
Adam

I’m also curious about the option for Chip and PIN on the physical card. If so, then I’d like to use it internationally for cash advances. I already have the gold standard Schwab debit card, but this might actually earn 1% cash back on the transaction with no fees. It’s not likely, but one can dream, right? I mean, c’mon, these titans of Wall Street and Silicon Valley (Goldman Sachs and Apple) aren’t hurting on their profit margins.

Philip D
Philip D

No word on warranty extension and price protection. I’ll stick with my Double Cash card.

Stan
Stan

yawn

gb
gb

Wonder if I would be able to ditch my debit card and use the physical apple cc to get cash as there is no cash advance fees and no foreign transaction fee

As there is no info but name on the apple card itself and as it’s a cc, wouldn’t this be safer than carrying a debit card?

K-Man
K-Man

I don’t think no fees means no interest. I bet you start getting charged interest immediately.

Hari
Hari

This brings in a question if its a daily rewards card, does it start charging interest the very next day instead of Statement date/Payment date etc like regular credit cards?

Christian

Unlikely. They showed a “slider” that lets you decide how much of your bill you want to pay and what interest it incurs. You can slide to 100% with no interest.

SRG
SRG

Yes, it’s safer to use your credit card overseas for cash advances. No need to pay the interest, as you can add cash to your account beforehand or pay it off as soon as the cash advance transaction is posted. I’m using my old CapitalOne card with no cash advance fee. It was compromised once in Ukraine. Disputing the transaction was super easy even though it was PIN-based.

SounderTID
SounderTID

This doesn’t make any sense, but if you say Capital One does this, I’ll believe you.

The Schwab debit remains the gold standard for international ATM use. No conversion fee, no ATM fee and full refunds of ATM operator fees worldwide.

aubergine
aubergine

Citigold customers get those same benefits too for intl ATM use. It’s just not something that is a huge dollar value though to us. We mostly pay by credit card when traveling internationally, and only carry a small amount of cash. To be fair, that’s just in Western Europe. Maybe if someone was in other parts of the world, cash would be more necessary. fwiw I have both citi and schwab accounts….

gb
gb

For me I don’t like carrying my debit card when traveling. It’s basically the only time I take it out of the drawer is to get cash from an atm when traveling. If the Apple cc can be linked to Apple cash, then I could link the Apple cash to my debit card. Unfortunately I’m still out of luck due to 5/24.

Celia
Celia

Doesn’t 5/24 only apply to when going for Chase credit cards? This card is issued by Goldman. Do they have the “unwritten” 5/24 rule as well?

gb
gb

Correct. I’m waiting to be eligible for another chase cc. Getting another cc anytime soon would be added to the chase 5/24 cap.

Jason
Jason

Non-Chase cards still eat up a 5/24 slot, though. So the point is “is this card really worth a 5/24 slot?”

mrredskin
mrredskin

5/24 is for any credit application

SRG
SRG

My point was that it’s safer to use your credit card for cash advance overseas than debit, as it provides a much better protection for fraudulent charges under the US laws. Once in Ukraine they somehow managed to steal my PIN and used it in Kiev while I was back in the US with my card in my possession. I sure was happy I didn’t use my debit card in Ukraine!

My old Capital One credit card gives the same benefits like your Schwab debit for cash advances, except no refund of ATM fees. Well, most ATMs in Europe don’t charge any fees anyway. My CapOne doesn’t have cash advance fees, no annual fee, no foreign currency conversion fees and it gives 1% cash back on all purchases. I use it mostly for cash advances overseas (daily limit of $400). I put most of my charges to CSR and Citi Double

James
James

My solution is to only fund my debit card with the amount I will need for my trip . Then drain account to $0.01 at end of trip .

Emporio
Emporio

Is this the first credit card issued by Goldman Sachs?! That’s my takeaway from this. I’d love another major bank to enter the credit card market with new partners and sign up bonuses.

The physical Apple Credit card without the credit card number seems pointless since you’re really just using Apple Pay on your phone. But as an Android user I’m not in the target market anyway.

Chris
Chris

In the live presentation, they said you can find the actual card number in the app if you really need it. Otherwise, yeah it’s a nice 2% card with no fees.

Jags
Jags

Not sure how you can say it’s basically another 2% card when it’s only 2% on Apple Pay purchases. That’s like saying the Altitude Reserve is basically a 4.5% cashback card.

The only fee people should really worry about are annual fees and foreign transaction fees and PayPal MasterCard offers that without any Apple Pay requirement. Citi Doublecash has FTF but offers price protection.

I’m sure it will be wildly successful for all the people who don’t know better. But this card is a dud.

MoreSun
MoreSun

Dud to me as I’d rather use my Altitude Reserve for 3% back on Apple Pay transactions…

aubergine
aubergine

But I hope it pushes more vendors to accept Apple Pay , thus increasing the chances of using the USB AR!

Davy
Davy

But with Samsung Pay you can already use it almost anywhere.

aubergine
aubergine

I don’t want to spend the $180 for a gear watch…..

Davy
Davy

You can get a used Gear S2 for real cheap on ebay. The latest Gear watches (S3) don’t actually work the same.

doc
doc

The Altitude is 4.5% back, when redeemed for travel. I don’t know if Apple even has an option to increase their 2% back upon redemption. But, the Apple card is a nonstarter, if you have any other card with over 2% back.

5150d
5150d

These guys must think their customers are dumb:
1. First, they stop reporting iPhone unit sales – maybe no one will notice.
2. Second, they raise prices on iPhones to over $1,000 each and unit sales decline – maybe no one will notice.
3. Third, they announce a “new” streaming service that offers same as others – maybe no one will notice.
4. Now, they offer a credit card that only gives you 2% cash back if used apple pay and 1% by using a physical card – how bout Alliant 2 1/2%?

Charlie
Charlie

Alliant’s card has a fee and earns less than 2% at spending levels below $12,000 a year.

appledud
appledud

Couldnt agree more. 10 year iphone user and not much of their “innovations” in recent years have even tempted me to try them. I just dont care about this shit. Fix my battery life. Stop automatically hyperlinking numbers in iphone notes. I could go on. Hoping my iphone x lasts a few more years. I’m in no mood to hand over additional $ to apple and most certainly not for their hyped services like a streaming service or CC.

If they really wanted to kill it in the CC space, they took the wrong approach by structuring the rewards to incent apple pay use only. I get why they did that. But smarter, would have been to get people to sign up for your CC first, for general use, and then try to get them to move over to apple pay. 1% cb will result in only the most committed fanboys applying. The same minority that might give a shit about their streaming service, I suspect.

Burton
Burton

This strategy has made them a nearly trillion dollar company, why stop now?

Ploto
Ploto

You’re citing the past year or two of success as the reason? It started in 2001 and then again in 2007.

LC
LC

ummm, these customers that are willing to pay a grand for a new updated iphone every other year… are kinda dumb.

P
P

Yes, they are. I once mentioned to an apple fanatic that I’ve only had two iphones and I’ve been an iphone use for eight years and he just couldn’t understand how that’s possible. He says my math is wrong.

It’s like when I tell people that I’ve only voted in four presidential elections, and they tell me I should vote every election. I tell them I do, but there’s only been four presidential elections since I turned 18.

Ploto
Ploto

This is so cringy. Like one of those insufferable nerds who think they’re more clever than they really are. When’s the last time you were invited to a party? Just curious.

P
P

I suffer from depression and agoraphobia. And yes, I’m being serious.

Ploto
Ploto

This is hardly specific to Apple. Flagships from other major brands are around that price point, especially Samsung.

Onsale
Onsale

3% on Apple Purchases vs. the Citi Costco 2 year warranty extension will be the decision to make.

jonflow

Assuming you’d normally get 1% back using the Citi Costco card for the Apple purchase, it’s really only a 2% gain. I can’t think of one single practical example where I would trade that 2% cashback for an extra 2 years of warranty, given the typical high cost of out-of-warranty repairs. The exception being you planned on upgrading the product before the extended warranty would kick in, in which case, is 3% really the best deal out there for Apple purchases?

Onsale
Onsale

jonflow isn’t it 2% using citi at Costco for Apple purchases?

jonflow

In that case you’re talking about a 1% cashback gain vs 2 years of extended warranty.

Onsale
Onsale

jonflow yes, that is the decision

Dylan
Dylan

DOA card it looks to be

H Xu
H Xu

the only point where I may want to get this card is the card itself physically, nothing else

Davy
Davy

Of course! Particularly if the physical card without a number on it is made of titanium or platinum or even better some intersteller metal – that would make it worth an extra $500 annually to most iPhone fanboys. I mean, that’s barely half the cost of my must-have annual phone upgrade. C’mon!

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