In March, at the much-awaited Time Show Event at the Steve Jobs Theatre, Apple announced something completely different from their usual devices. After 2014, when Apple Pay was launched, the multi-national tech giant announced the Apple credit card.
This card is revolutionary as it has features not many credit cards offer along with being co-partnered by MasterCard and Goldman Sachs, a giant in the banking industry who have never offered a consumer credit card before this one. The Apple credit card has big shoes to fill.
The credit card will be linked to your Pay account on any of your Apple devices and any kind of transaction made will ensure that you get some amount as cashback. More so, the card comes with zero annual fees, over-limit fee or mark-up fee.
First and foremost, you will need to own an Apple device to make sure that you have the facility of Apple Pay. Either an iPhone or an iPad will include the Pay option through which your credit card will be registered.
Once you have synced your card with the app, the credit limit which you have on your card will be present your app as well. Just like any other credit card, the limit will be at the discretion of Goldman Sachs and MasterCard, hence you will need to have an impeccable credit report and history to secure a higher credit limit.
After your card is synced with the app, you can make it your default card for payments. This will work as a digital credit card.
However, for the purchases were Apple Pay is not accepted, the company has also launched a seamless, titanium made credit card which will be given to you by the company. Once you receive the physical card, all you must do is tap the card against your device and it will be activated immediately. Much like the Airpods.
The Apple credit card is loaded with features and even more so, features which have not been seen before in other credit cards.
One of the most striking features which this card possesses is that the physical card has only the name of the holder, the magnetic strip and the RFID chip and no card number, expiration date or even a CVV. This makes it easier just to use the card without remembering all sorts of numbers before making any kind of transaction.
Here are some of the other features and benefits of the card
Most credit cards offer cashback and reward point benefits for all purchases made. This cashback comes after 4-5 days after the transaction has been made. The major benefit of the credit card is that the concept of ‘daily cash’.
With this, purchases made with the Apple card will get you a cashback of 1% on all your purchases will be credited to your card immediately on a real-time basis. On the other hand, if you are making purchases with your Apple Pay account, a cashback of 3% of your purchase amount is credited to your account on a real-time basis.
However, to get the cashback rewards immediately, you will need to sign up for Apple Cash. If you do not have Apple Cash, the cashback will be credited to your account at the end of the statement cycle.
The cashback you receive on your Apple Cash account can be sent to friends and family. It can also be directly deposited to your account without any kind of extra charges.
What you might have seen only on your business credit cards with the Management Information Systems, the Apple credit card helps you keep a track on your spends and help you budget every month.
By tracking, we mean literal tracking where if you do not remember a certain transaction, the app will show you your purchase history along with a pin on the exact location of your purchase on your Apple Maps.
More so, all your transactions are recorded on the Apple Pay app with colour codes for various categories of expenses. For example, Orange for Food and Drinks, Pink for Entertainment, etc.
The app also provides you with a weekly and monthly expenditure summary with the same colour codes to help you budget better.
To increase security and have a track of all your purchases, the apple pay app sends you an immediate notification for any transaction which is made with the card. This helps you keep a track of your purchases and report any recognise any fraudulent transactions which you have not made but has been charged on your card.
Apple uses machine learning and mapping technology to keep a track of all your purchases and categorise them based on the location of the purchase made. If you have made a purchase at a theatre, it will categorise that purchase under entertainment.
All your transactions made will be mentioned with the merchant name, the date, the amount and the exact location of where the purchase was made.
Apple’s credit card repayment system is something no other credit card has offered before. Instead of the traditional method of monthly payments, Apple has offered its customers multiple intervals to pay their bills such as weekly, bi-weekly and monthly.
Not only that, by keeping a track of all your purchases, Apple Pay will show you these options depending on your expenditure till date. It will also show you the interest which needs to be paid in all these different payment options. If on your total card bill, the interest on a weekly payment is lesser than what you will be paying monthly, this is what the app helps you with.
Apple to help make balance payments easier, has excluded any kind of fees and charges to its credit card. There is no annual fee, no over limit fee, cash advance fees or even late charges.
However, since there are no charges for making late payments, Apple will check repayment behaviour and if it is continuous, will increase your interest rate on the card.
This helps customers to focus on the amount which needs to be paid and the interest, apart from all the additional charges as well which some credit cards add.
As far as interest rates are concerned, Apple charges an interest rate between 13.24% and 24.24% per annum. The rates will be applied based on the credit score of the applicant and the credit report checks done by the bank and MasterCard. To get a good interest rate, it is advised that you maintain a higher credit score.
Apple aims to make this credit card available for the population with less than great credit scores and the app helps the cardholder to budget, finance and offers tips to pay off bills faster to avoid increased interest rates.
Unfortunately, the Apple credit card is available in the United States of America and does not seem to be entering the Indian market soon. More so, even Apple Pay has not been facilitated in India even though it has been 5 years since its introduction.
The market in India has been low for many Apple products due to the increase in the price range and high maintenance costs.
However, for more information, you can visit the official website of Apple India and submit your e-mail ID to get notified when the product enters the country.
Like the purchases made on the app store of Apple, all kinds of transactions made from the app will require a touch ID or face ID along with a one-time dynamic code to ensure increased security. Apple has also created a unique ID for the card which is stored in the app.
With this, Apple has a record of which store the customer has shopped at, what was brought, the total expenditure along with a map marker of the same.
Goldman Sachs will also be able to view this data for any internal purposes however this data and the ability to get this data cannot be marketed by the bank.
The credit card has not been launched yet, it has only been announced, even in the United States of America. However, it is said to be launching when iOS 12.4 will be released.
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