Any news on a signup bonus? The rewards aren't that compelling, so I don't see a reason to apply without a significant bonus.
Apple announces Apple Card credit card
301–310 of 778 posts
Re: Apple announces Apple Card credit card
#302Earlier quoted context omitted.
Apple said they've engineered the service such that Apple does not know what you're purchasing or even what vendors you're shopping at. If Apple doesn't know this, they can't very well apply arbitrary rules to it.
What do they gain from offering the card if they are not harvesting transaction data? Is it possible that this is some legal gymnastics (i.e. Goldman-Sachs receives the 'Apple doesn't know' data and promptly send it over to them under an opaque 'we share information with our affiliates' clause)? It does seem like a lot of work and potential risk if the sole purpose is to increase user dependency on the Apple ecosyste…
Apple likely save quite a lot from small transaction ( $0.99 ) if it was done on Apple Card.
Roughly $50B are spent on App Store, and even more with growing number of Subscription along with other Apple Credit Card usage. That is a potential of $100B+ transaction volume.
It will likely be another entry point for Apple Cash, sending and receiving money from friends.
Re: Apple announces Apple Card credit card
#303It seems to me that Apple can offer reduced fees due to the fact that they'll have less fraud as a result of requiring touch/face ID for every purchase. While interesting, it doesn't come close to solving what I feel is the largest problem with cards in the US today -- interchange fees.
If they removed interchange fees, they wouldn't be able to offer any kind of significant cashback.
Re: Apple announces Apple Card credit card
#304Earlier quoted context omitted.
I know this is a MasterCard, but it'd be more interesting if they were able to take out the $0.35 transaction fee on every transaction. This is the bread and butter of every payment processor, and it's complete rent seeking, AND supposedly all the major processors are going to RAISE it at roughly the same time in the coming months. Eliminating the set transaction fee could open up so many potential businesses. But I'…
Why is the per-transaction fee the rent-seeking part? I get why MC/Visa have a per-transaction fee. I don't understand why there's a percentage of the transaction on top of that. It's not any more work for a $1 transaction versus a $1,000,000 one on their end.
Wouldn't the risk of fraud make a $1 million transaction much more expensive to handle?
Re: Apple announces Apple Card credit card
#305Earlier quoted context omitted.
I know this is a MasterCard, but it'd be more interesting if they were able to take out the $0.35 transaction fee on every transaction. This is the bread and butter of every payment processor, and it's complete rent seeking, AND supposedly all the major processors are going to RAISE it at roughly the same time in the coming months. Eliminating the set transaction fee could open up so many potential businesses. But I'…
Why is the per-transaction fee the rent-seeking part? I get why MC/Visa have a per-transaction fee. I don't understand why there's a percentage of the transaction on top of that. It's not any more work for a $1 transaction versus a $1,000,000 one on their end.
The percentage fee is 1, for rewards necessary to get people to use the card and 2, to cover fraud which is actually a MASSIVE problem and 3, to cover defaults/payment issues.
The per-transaction fee existed to cover the additional cost of building out the network (literally running cables and wires to the merchants' stores) and providing card readers. The network is already built and has been paid for THOUSANDS of times over, and at this point it's largely obsolete. I'm also pretty sure merchants need to buy their own card readers now.
Finally, the best estimates for the cost to process a transaction is Oh the joys of running a cartel.
Re: Apple announces Apple Card credit card
#306Earlier quoted context omitted.
I wonder how you can challenge a fraudulent transaction when that information is missing
My understanding was that Goldman Sachs will have that information and they will be responsible for fraud prevention etc. -- they just won't share it with Apple.
Oh great, now I feel much better.
Re: Apple announces Apple Card credit card
#307Earlier quoted context omitted.
I know this is a MasterCard, but it'd be more interesting if they were able to take out the $0.35 transaction fee on every transaction. This is the bread and butter of every payment processor, and it's complete rent seeking, AND supposedly all the major processors are going to RAISE it at roughly the same time in the coming months. Eliminating the set transaction fee could open up so many potential businesses. But I'…
Why is the per-transaction fee the rent-seeking part? I get why MC/Visa have a per-transaction fee. I don't understand why there's a percentage of the transaction on top of that. It's not any more work for a $1 transaction versus a $1,000,000 one on their end.
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Re: Apple announces Apple Card credit card
#308Just allow me to create as many 'virtual' credit cards from a single card and that's enough. Every single provider that promised that feature has either underwhelmed, or gone out of business.
Revolut lets you do this, but I suspect they will be going out of business soon, given the new competition from Apple.
Apple isn't launching this in Europe (where Revolut operates) anytime soon, at least with this kind of offer.
Re: Apple announces Apple Card credit card
#309It seems to me that Apple can offer reduced fees due to the fact that they'll have less fraud as a result of requiring touch/face ID for every purchase. While interesting, it doesn't come close to solving what I feel is the largest problem with cards in the US today -- interchange fees.
A significant proportion of interchange fees goes to covering fraud chargebacks.
Re: Apple announces Apple Card credit card
#310Earlier quoted context omitted.
Why is the per-transaction fee the rent-seeking part? I get why MC/Visa have a per-transaction fee. I don't understand why there's a percentage of the transaction on top of that. It's not any more work for a $1 transaction versus a $1,000,000 one on their end.
Wouldn't the risk of fraud make a $1 million transaction much more expensive to handle?
Yes. This is roughly half of the transaction fee. The other half is to self-fund the rewards illusion that gets customers to use the card.