Apple’s Show Time event was packed with services announcements from the company. Apple announced not one or two but four different services, with most of them launching later this year. Apple also announced Apple Card — a “new kind of credit card” that has been “created by Apple, not a bank.”
In typical Apple fashion, the company is changing many aspects of how a credit card works with the Apple Card. It also focuses heavily on privacy, security, and simplicity which other credit card offerings in the market currently lack. Apple Card ties in heavily with Apple Pay to offer an ease of use that no other credit card in the market can match.
Interested in Apple Card and wondering what makes it so special? Below is everything you need to know about it.
Apple Card FAQ: Everything You Need to Know
Made by Apple and Goldman Sachs
Despite Apple’s claim of Apple Card not being created by a bank, Apple has teamed up with Goldman Sachs for Apple Card. Additionally, Mastercard is the payment processing partner for Apple Card.
The USP of Apple Card are as follows:
- Integration with Wallet and Apple Pay
- No hidden fees
- Detailed spending data
- Daily Cash
First, let’s talk about integration with Apple Wallet and Apple Pay. The integration means that one can use Apple Card and all transactions done via it will be neatly shown inside the Wallet app. The integration means one can easily sign up for Apple Card right from their iPhone using the Wallet app and start using it with Apple Pay. Apple Card will work where Apple Pay is accepted — online or offline — and in case Apple Pay is not supported, Apple is offering a physical card as well.
The integration also means one can see a detailed overview of their spending habits. The Wallet app will automatically categorize your transactions in different categories and provide detailed transaction history. For example, if you cannot remember a transaction, you can tap on it and you will be shown the exact location in Apple Maps where the transaction was done.
Q) What are the pre-requisites for signing up for Apple Pay?
A) Apart from living in the United States and owning an iPhone, the only other pre-requisite for Apple Pay is that you must have two-factor authentication set up for your account.
Q) How does one sign up for Apple Card?
A) Once released, one can sign up for Apple Card right from within the Wallet app. Users will have to enter their address, birthday, income level, and the last four digits of their SSN during the signup process.
Your registration will be approved by Apple and Goldman Sachs before you’ll be able to start using Apple Cash. Having a low credit score means your application might be rejected.
Q) How long does it take for Apple to approve the Apple Card request?
A) Apple and Goldman Sachs will approve Apple Card applications in real-time. Goldman Sachs will conduct a credit check via TransUnion.
Q) How is Apple Card integration with the Wallet app in iOS beneficial?
A) The integration means that all transactions you do via the Apple Card automatically show up in the Wallet app. Your expenses will be categorized in different categories and you would be able to see your highest spend category on a weekly/monthly basis.
Q) Can one Apple Card have multiple users or shared cards?
A) No, that’s not possible. Right now, Apple Card is limited to one person per account as of now.
Q) How does one get the physical Apple Card?
A) A user can request the physical Apple Card from the Wallet app.
Q) Does the card come pre-activated or does it need to be activated?
A) Once you receive your physical Apple Card, you will need to activate it manually. The process is similar to how one pair AirPods with an iPhone. Simply bring the card near your iPhone and you will automatically get a pop-up to activate it.
Q) Is there any fee involved with the physical Apple Card?
A) No, there are no fees involved with the physical Apple Card. Apple will send you one for free.
Q) What happens if one loses their physical Apple Card or it gets stolen?
A) This is where the tight integration of Apple Card and the Wallet app comes into play. You can simply use the Wallet app to block your physical Apple Card and then request a replacement.
Q) How much do replacement Apple Card costs?
A) Apple currently is not charging any fees for replacement Apple Card.
Q) Does the physical Apple Card support contactless transactions?
A) No, it does not. Apple expects you to use Apple Pay in such situations.
Q) How does the physical Apple Card work since it has no numbers printed on it?
A) The physical Apple Card has no numbers printed on it but the mag stripe has the card number stored. Even the Wallet app will only display the last four digits of the physical card number. There’s no way to know the full card number of the physical Apple Card.
Q) Since the actual Apple Card number is not printed, how will one use Apple Card for online transactions?
A) For online transactions, one can use Apple Card via Apple Pay. If that’s not available, one can generate a virtual card number and CVV using the app on their iPhone and use it for online transactions.
This number will be valid as long as you want it to. It will only stop working when you generate a new card number. Otherwise, the last generated card number and CVV from Apple Card will continue to remain valid.
Q) Do Apple Card transactions require a signature for verification purposes?
A) No, they don’t.
Q) What kind of cashback is Apple offering with Apple Card?
A) All physical Apple Card transactions have a 1 percent cash back, while all online Apple Cash transactions offer 2 percent cash back. For products purchased through Apple’s online store, Apple is offering a 3 percent cash back. Apple is calling this Apple Daily Cash.
Q) Where is this cash back credit and how can it be used?
A) Apple will credit the cash back a.k.a Apple Daily Cash to your Apple Cash card account every day. You can use Apple Daily Cash for other transactions as well as for paying your outstanding amount.
Q) What happens when one switches to a new iPhone?
A) As soon as you sign into your new iPhone with your iCloud account, all your details and Apple Card related information will be transferred to the device.
Q) What are the late payment fees associated with Apple Cash?
A) As Apple highlighted during the event, there are no late payment fees associated with Apple Cash. So, even if you don’t pay your entire Apple Cash outstanding amount, you will not be charged any fees from Apple.
Q) What charges does one pay if they only pay the minimum amount due of their Apple Cash statement?
A) Only the interest on the amount outstanding will need to be paid. This interest rate will vary depending on your credit score. One positive aspect of Apple Card is that Apple will not increase the interest rate on the outstanding balance like other banks do.
Q) What are the Apple Card interest rates?
A) Apple will charge anywhere between 13-24 percent as interest rate depending on one’s credit score.
Q) Can an Android smartphone user use Apple Cash?
A) Yes, they can but the experience won’t be the same which kind of makes it pointless. Since there’s no Wallet app for Android, Android users can only use the physical Apple Pay card.
Q) When will Apple Card expand outside of the U.S.?
A) There’s no word from Apple as to when it will bring Apple Card to other parts of the world.
Q) How is Apple Card different from other credit cards in terms of ads and privacy?
Apple always puts a great deal of stress on the privacy and security of all its products and services. Apple will not be sharing any transaction data with Goldman Sachs which means Apple Card users will be spared from targeted ads. It will also not sell your information to third parties.
Have any other questions about Apple Card? Drop a comment and we will answer them for you.
Last updated: August 7, 2019