Why You Should Care About the Apple Card, Even If You Aren’t Getting It
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Yesterday, Apple unveiled a slew of new subscription services that will let you read the news, play video games and watch documentaries produced by Oprah. The company also wants you to pay for all that content using the Apple Card.
Basically, the event showed that Apple wants your eyeballs and your money. Plenty of TPG readers weighed in with less-than-excited comments about the card, which will be available this summer. “Snooze,” “Hard pass” and “honestly, has no use to me” can sum up the attitudes of the savviest points-hungry readers, and I’ll admit that I initially shared the level of indifference to the news. However, I think Apple will do more than get people who love Apple to applaud at its event with this product.
While I do not agree with Apple CEO Tim Cook’s belief that Apple Card will be “the most significant change in the credit card experience in 50 years,” my perspective has changed. There are some crucial reasons why Apple’s entrance to credit cards will create positive changes for all of us.
Instant Rewards Impact
The Apple Card’s Daily Cash offer is built for the era of instant gratification. Rather than waiting until the end of a billing cycle to post accrued monthly earnings, customers who use Apple Card will see cash back totals on a daily basis. Imagine if other cards decide to copy Apple’s approach and issue points on a more frequent basis. For customers in need of a small amount of additional rewards points, the immediacy of posting a reward can make the difference of capturing a great deal or letting it slip away while waiting for a monthly rewards total. I would love to see Chase start posting Ultimate Rewards points on a daily basis.
Lowering the Bar for Fees
The Apple Card seems to want to occupy the most consumer-friendly position in the credit card landscape when it comes to fees. The absence of late fees and foreign-transaction fees could push more competitors to embrace a zero-fee approach to their most basic offerings and expand the list of cash-back cards with no foreign transaction fees. And Apple’s aim to offer the lowest interest rates in the industry is good news for anyone who is guilty of carrying a balance on their credit cards.
Apple said that Goldman Sachs, its partner for the card, will not share or sell data to third-party companies. If you’re looking to limit how many companies know how much you spent at the bar last weekend, Apple seems to be setting an example for the banking industry.
Beyond keeping your information away from third parties, the Apple Card appears to set a new standard for credit card fraud protection. The physical card has no card number, no CVV, no expiration and no signature — just your name and a chip. To access those card numbers when making a purchase online, card holders will need to pull up their card in the Wallet app. Additionally, the Apple Card features a “one-time unique dynamic security code” that changes after each purchase you make, adding another layer of protection against fraud.
Apple’s rewards structure won’t attract interest from anyone carrying premium credit cards. The 3% on purchases made with Apple/2% on mobile purchases/1% on purchases made with the physical card deal can’t compete with 5x points with airlines, lounge access, complimentary WeWork access and the other lucrative offers that swirl in the high-end credit card landscape. But the company could prove to be a difference-maker in the way that credit card companies approach entry-level card holders.
Featured image by Zach Honig.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.