....the thrill of feeling lucky when you look at your cash back amount at the end of a shopping day
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Apple Card Users Earned More Than $1 Billion in Daily Cash Last Year
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Apple Card is only available in the US.
If people pay interest in the card that is their own fault and they're not earning any rewards at all by choosing to pay finance charges.
I've enjoyed the experience so far, compared to other credit cards.
Let's not forget, as others have commented, cash back is not earned. You are paying for it through merchant / interchange fees (or, God forbid, interest). On average, this is around 3% total (which is why many sellers tack on an extra 3% when using credit cards). It is simply a cyclical loyalty program and should never be used as a factor in making purchase decisions.
For instance, my fiber bill is $65/mo. They charge 3% extra for using credit. I can get 2% back with Apple Pay, or only 1% if I swipe or use the card number. That's a 1-2% spread, monthly. That's roughly equivalent to me paying 12-24% interest rate, minus what my cash makes sitting an extra month until the bill gets paid (hopefully in a HYS at say 4.5% APY). So even if you think "I don't carry a balance so I don't pay any interest", depending on the merchant, you're likely still paying the equivalent of 8-20% "interest" in a roundabout way.
Of course, most point-of-sale merchants don't selectively itemize the extra 3% because it's a hassle. They just raise their prices transparently to make up for it. So you're still paying for it, but sometimes it's unavoidable and you might as well get as much cash back as possible.
Let's not forget, as others have commented, cash back is not earned. You are paying for it through merchant / interchange fees (or, God forbid, interest). On average, this is around 3% total (which is why many sellers tack on an extra 3% when using credit cards). It is simply a cyclical loyalty program and should never be used as a factor in making purchase decisions.
For instance, my fiber bill is $65/mo. They charge 3% extra for using credit. I can get 2% back with Apple Pay, or only 1% if I swipe or use the card number. That's a 1-2% spread, monthly. That's roughly equivalent to me paying 12-24% interest rate, minus what my cash makes sitting an extra month until the bill gets paid (hopefully in a HYS at say 4.5% APY). So even if you think "I don't carry a balance so I don't pay any interest", depending on the merchant, you're likely still paying the equivalent of 8-20% "interest" in a roundabout way.
Of course, most point-of-sale merchants don't selectively itemize the extra 3% because it's a hassle. They just raise their prices transparently to make up for it. So you're still paying for it, but sometimes it's unavoidable and you might as well get as much cash back as possible.
Foreign transaction fee? I didn’t think it had one. I use it with Nintendo just for that reason. Is that new?
I'd assume that GS gets the interest payments. And Apple gets a cut of the interchange fees.
Who sells donuts by 5 count?
Probably the same group of fools that have to broadcast that their cash back bonus or savings interest APR is .25% higher than Apple's rate every time they announce a rate increase.
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The Apple card doesn't, but I was replying about the Wells Fargo Active cash card, which is my primary CC.
From: https://creditcards.wellsfargo.com/active-cash-credit-card?sub_channel=SEO&vendor_code=DG
One factor to consider, Apple can dump your cash back into an Apple savings account daily that’s currently paying 4.50%. While other cards (e.g. Bank of America - Customized Cash Rewards) will only pay out your cash back monthly. This means your cash back can begin to earn interest sooner than with other cards.
Apparently not enough then, since GS supposed to be unhappy with the arrangement.
The price of products is increased to account for the cut the credit card companies take. People who pay cash or equivalent are paying more for products than they should be. There is no free money.
I think it was more about GS not being committed to consumer banking. GS was losing money on their whole consumer division. They decided to get out of consumer banking all together.
That’s great for the user but it’s all part of a systemic problem of credit cards adding to inflation. The money you receive back was likely part small part of the cost you incurred as the result of the merchant passing along the fees they get charged for accepting credit cards.
Sadly those who don’t pay with credit cards often still pay the increased fee 🙄.
Cash back isn’t a bonus it’s partial refund of the extra fees you pay to use it.
Sadly those who don’t pay with credit cards often still pay the increased fee 🙄.
Cash back isn’t a bonus it’s partial refund of the extra fees you pay to use it.
Sure, for those individuals who have no joy and are cynical and negative about everything.
Imagine how much money you'd save, if you could buy every good and service at cost too. Then imagine how much cheaper everything would be if we all earned the same wage.
At a certain point, you have to accept the reality of the world we live in both the good and the bad. These cash-back credit cards, credit card fees, profits and disparity in wages aren't going anywhere.
Well, reports seem to have been that Goldman Sacs wants out because it's losing a lot of money. Presumably because Apple seemingly makes it too easy to avoid interest charges. Whether its by making it transparent what those interest charges will be or because they makes it easy to pay / auto pay, dunno.
From people who do not clear their balances and pay interest and also a transaction fee for the merchant. (This is one reason why the card is not in Europe and also why generally credit cards there have lower rewards compared with the USA. The EU, with its incessant meddling, capped the credit card merchant fee a while back).
And therefore not taxable income either. You don’t have to report cash back received. I just downloaded my Apple Savings account 1099-INT form and THAT is taxable. Boys and girls, don't forget to download that form from your Wallet app as you are not going to get anything in the mail.
Interest earned from the savings account it's deposited into, however, is taxable.
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You make a good point, but almost all the places I have shopped at (minus a few odd balls) what you pay at the POS is the same if card or cash. Only places that have a surcharge has been government locations like the DMV etc.
I enjoy what little I get back, specially as I carry 0 balance, and fall in that 30% group that makes two or more payments a month.