Apple's laser-etched titanium credit card won't let you earn points

By Mark Gurman, March 26 2019

With its typically minimalistic design, Apple's new credit card could be a thing of lust that's most notable for what it lacks. The sheer white laser-etched titanium card won't have a credit card number, CVV, expiration date or signature. Nor will it earn you points.

Instead, the physical Apple Credit Card is a mere adjunct to the Apple Pay feature of your iPhone or Apple Watch, and is intended to be used only when the vendor doesn't accept Apple Pay.

Issued with Goldman Sachs Group and Mastercard, the Apple Card will let users track spending in the Wallet app, and, the company says, focuses on transaction privacy.

Rather than earning points, the Apple Card relies on a cashback program for rewards – including 2 percent cash back on all Apple Pay purchases and 3 percent on Apple Store and services like the App Store.  Purchases made through the physical card will get just 1 percent cash back. The discounts are applied straight to your Apple Card to spend or put toward your purchases.

The card excludes common charges like annual, foreign-transaction and late fees, Jennifer Bailey, Apple’s vice president of Apple Pay, said. Apple and Goldman Sachs won’t share user data with partners and advertisers.

Apple and Goldman are entering the intensely competitive field of consumer credit, where banks have been shelling out costly rewards to encourage consumers to spend through their cards.

Banks, which collect a fee from merchants each time a consumer swipes their card at checkout, have been eager to grow their card businesses in recent years and have benefited from low default rates.

Apple isn’t new to electronic payments. Apple Pay Cash is a virtual debit card of sorts that lets users transfer money over iMessage and can also be used as a tap-to-pay tool in stores. Apple partnered with Green Dot Bank for that service and has long offered a credit card with Barclays for Apple hardware purchases.

Additional material by David Flynn

Mark Gurman

Mark Gurman covers consumer technology for Bloomberg

MKS111

MKS111

Qantas - Qantas Frequent Flyer

26 Sep 2011

Total posts 85

Why exactly does this deserve a mention on an Australian site given that it's a credit card that's only available in America?

johnaboxall

johnaboxall

Virgin Australia - Velocity Rewards

24 Aug 2011

Total posts 732

It will eventually work its way out to Australia. Apple will convince some regional bank to tie in with them.

No points, no thanks.

Chris Chamberlin

Chris Chamberlin

24 Apr 2012

Total posts 2938

John: With credit card interchange capped at 0.8% in Australia, the amount of cashback on offer would be minimal at best if the product ever came to Australia, unless subsidised by Apple to grow market share. They have a bit more freedom to give higher cashback in the US, where merchant and interchange fees are much higher.

adethyasjce

adethyasjce

Qantas - Qantas Frequent Flyer

03 Jul 2018

Total posts 13

"No points, no thanks." - love this :)

cn7799

cn7799

22 Jul 2014

Total posts 9

Whether its by Apple or Google or any other provider they have spend millions of dollars maintaining their infrastructure so won't be giving free points. There is no such thing as free lunch. Would you run a business and provide free service?

David

David

24 Oct 2010

Total posts 2333

Because we have a worldwide audience with a keen interest in Apple and credit cards and developments in this area.

MKS111

MKS111

Qantas - Qantas Frequent Flyer

26 Sep 2011

Total posts 85

Since we’re discussing the wonderful world of Apple, the Americans have had Apple Cash for some time now, but it’s never been available here. If you go to your Wallet after upgrading to iOS12 you’ll find it’s now there. Small point - it’s there by mistake. After spending 15 minutes on the phone with Apple Support this morning it seems that its inclusion in the Australian release was a SNAFU

Hi Guest, join in the discussion on Apple's laser-etched titanium credit card won't let you earn points