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'Elite' Apple card and Interchange Fees

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Community Leader
Super Contributor

'Elite' Apple card and Interchange Fees

I wonder if MasterCard classifying the Apple card as elite will affect the industry in regards to rewards and Interchange Fees. As far as I'm aware, it's not labeled as World or World Elite, correct?

 

https://9to5mac.com/2019/12/10/apple-card-retailer-pushback/amp/







Message 1 of 8
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Super Contributor

Re: 'Elite' Apple card and Interchange Fees

Yeah its definitely hidden that its a WEMC. The only reason I knew about it was because of this reddit post - https://www.reddit.com/r/AppleCard/comments/cqnbf4/apple_card_mastercard_world_elite_or_not/



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 2 of 8
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Moderator Emeritus

Re: 'Elite' Apple card and Interchange Fees

@Saeren look at the Citi Double Cash Back Master Card. It get's issued as a World Elite Master Card with $300 CLs and virtually no benefits that would be envisioned on a WEMC?!
Message 3 of 8
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Super Contributor

Re: 'Elite' Apple card and Interchange Fees


@Dinosaur wrote:
@Saerenlook at the Citi Double Cash Back Master Card. It get's issued as a World Elite Master Card with $300 CLs and virtually no benefits that would be envisioned on a WEMC?!

yeah I know but they have to pay for that 2% somehow.

 

I think we are going to see rewards cards as we know them die off very soon. Regulation is going to happen, its just a matter of time. The Apple Card will accelerate that since its putting rewards cards in the hands of people who wouldn't normally care about or use rewards - I mean its becoming many people's first credit card period for that matter.

 

The merchants aren't wrong that the fees are too high. They end up having to pass the cost on to the customer and prices go up for everyone with only those of us savvy about rewards cards coming out ahead.



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 4 of 8
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Valued Contributor

Re: 'Elite' Apple card and Interchange Fees

Somewhat along these lines.. a local establishment sent out emails here as well saying they are no longer accepting credit cards.  If you choose to use one, they'll charge you the 3% transaction fee.  I for one won't be going back but, the wheels are apparently turning in this direction.


Message 5 of 8
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Super Contributor

Re: 'Elite' Apple card and Interchange Fees


@Cred4All wrote:

Somewhat along these lines.. a local establishment sent out emails here as well saying they are no longer accepting credit cards.  If you choose to use one, they'll charge you the 3% transaction fee.  I for one won't be going back but, the wheels are apparently turning in this direction.


Thankfully that's illegal in Colorado. They can offer a discount off the menu price for customers not using a credit card but they cannot charge a surcharge for people who use cards.



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 6 of 8
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New Contributor

Re: 'Elite' Apple card and Interchange Fees

Defining non- premium cards as premium for the purpose of manipulating interchange fees could push the regulatory pendulum closer to the E.U where 1% cash back is a rarity. Same old story- replayed in various contexts over centuries- not knowing when to quit with the blatant greed.  

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Valued Contributor

Re: 'Elite' Apple card and Interchange Fees

It's all a wash anyways then, right? If we pay the fee via higher cost of goods, what use is that 2% rewards card? Or even the 4X points etc.

It's like "we're" paying ourselves to earn rewards, meanwhile the only one ahead is the CCC. And maybe the stores because of passing on the fee.

 

But I think it's wrong to bill a CC as "Elite" just to get higher swipe fees at retail, when it isn't that for the actual user when comes to coverages etc. Especially when they start cutting said coverges on an AF product!

 

If they were after higher swipe fees, then maybe they should have signed a deal with Amex. Then again this is on Goldman, not Apple?

 






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