topic Article About Apple Card Issues in Credit in the News

Article About Apple Card Issues

Jordan23ww — Thu, 27 Jul 2023 20:40:20 GMT

Saw this article actually in an Apple Card group on Facebook. Interesting article about issues with the Apple Card and Goldman Sachs splitting up. How it can’t go to Amex until 2026 because of an agreement that it will be on a MasterCard payment network until then. Also how Tim Cook applied and got denied for the Apple Card when testing things out years ago. https://www.macrumors.com/2023/07/25/apple-goldman-sachs-apple-card-issues/

Re: Article About Apple Card Issues

CYBERSAM — Thu, 27 Jul 2023 21:25:59 GMT

@Jordan23ww wrote:
Also how Tim Cook applied and got denied for the Apple Card when testing things out years ago.

😂 That is hilarious! 😂

I like how these big companies threaten to go to AMEX for securing better deal.

3% on Apple pay would give them millions of new customers.

Re: Article About Apple Card Issues

Jordan23ww — Thu, 27 Jul 2023 23:48:33 GMT

@CYBERSAM wrote:
@Jordan23ww wrote:
Also how Tim Cook applied and got denied for the Apple Card when testing things out years ago.
😂 That is hilarious! 😂
I like how these big companies threaten to go to AMEX for securing better deal.
3% on Apple pay would give them millions of new customers.

@CYBERSAM yes it would! Maybe they should do that. Also make using the card at least 2%. That would also be helpful I believe.

Re: Article About Apple Card Issues

md_rebuild — Fri, 28 Jul 2023 02:20:30 GMT

Posted the below on another thread about the same article:

From the article:

Because Goldman Sachs was new to consumer banking and was eager to establish a deal with Apple, it is not collecting fees that it would typically get in a partnership for a credit card. Goldman Sachs does not get a portion of the fee that merchants pay to Apple to accept the ‌Apple Card‌. Retailers pay a percentage of each transaction when taking a credit or debit card payment, and Goldman Sachs gets no funding from this.

Goldman Sachs is unable to collect annual fees, late fees, or fees for foreign transactions because the ‌Apple Card‌ does not charge these fees. Apple does pay for the Daily Cash that users earn, and Goldman Sachs is able to earn money from loans issued to cardholders who split Apple product purchases into installments, but it is not making enough for the deal to be appealing to a new partner.

If the reporting is accurate, then you have to wonder how the heck did GS think they were going to make any $$$??? No wonder they're anxious to get out. If they have to eat 2-3 more years of losses, well, that would not make shareholders happy.

Re: Article About Apple Card Issues

CYBERSAM — Fri, 28 Jul 2023 05:56:42 GMT

There are sooo many cards that don't have those fees and have better rewards than Apple card!

Re: Article About Apple Card Issues

Anonymalous — Fri, 28 Jul 2023 13:43:51 GMT

@md_rebuild wrote:
Posted the below on another thread about the same article:

From the article:
Because Goldman Sachs was new to consumer banking and was eager to establish a deal with Apple, it is not collecting fees that it would typically get in a partnership for a credit card. Goldman Sachs does not get a portion of the fee that merchants pay to Apple to accept the ‌Apple Card‌. Retailers pay a percentage of each transaction when taking a credit or debit card payment, and Goldman Sachs gets no funding from this.

Goldman Sachs is unable to collect annual fees, late fees, or fees for foreign transactions because the ‌Apple Card‌ does not charge these fees. Apple does pay for the Daily Cash that users earn, and Goldman Sachs is able to earn money from loans issued to cardholders who split Apple product purchases into installments, but it is not making enough for the deal to be appealing to a new partner.

If the reporting is accurate, then you have to wonder how the heck did GS think they were going to make any $$$??? No wonder they're anxious to get out. If they have to eat 2-3 more years of losses, well, that would not make shareholders happy.

It's particularly ironic, because the article talks about how Goldman was focused on profitability.

Honestly, this whole debacle makes it sound like Goldman Sachs had no idea what they were doing in the credit card space, so they let Apple set unsustainable requirements. This makes the rumored pass to Amex seem less likely, because Amex knows exactly how the industry works, and they're known for walking away from deals that won't be profitable. Combine that with the deal with MasterCard that prevents switching to the Amex network until at least 2026, and it makes the pairing seem rather improbable.

Re: Article About Apple Card Issues

mau471 — Thu, 03 Aug 2023 18:03:16 GMT

@md_rebuild wrote:
Posted the below on another thread about the same article:

From the article:
Because Goldman Sachs was new to consumer banking and was eager to establish a deal with Apple, it is not collecting fees that it would typically get in a partnership for a credit card. Goldman Sachs does not get a portion of the fee that merchants pay to Apple to accept the ‌Apple Card‌. Retailers pay a percentage of each transaction when taking a credit or debit card payment, and Goldman Sachs gets no funding from this.

Goldman Sachs is unable to collect annual fees, late fees, or fees for foreign transactions because the ‌Apple Card‌ does not charge these fees. Apple does pay for the Daily Cash that users earn, and Goldman Sachs is able to earn money from loans issued to cardholders who split Apple product purchases into installments, but it is not making enough for the deal to be appealing to a new partner.

If the reporting is accurate, then you have to wonder how the heck did GS think they were going to make any $$$??? No wonder they're anxious to get out. If they have to eat 2-3 more years of losses, well, that would not make shareholders happy.

I thought the exact same thing and feel like this has to be someone getting the details wrong. It pretty much leaves the only way they could possibly make money to interest but they also do a lot to help educate people to avoid it. While they are new to consumer credit, I can't imagine they were THAT dumb and renew the deal on top of that once they realized how big of a loss it was.