Apple Card
The Apple Card is a credit card product developed by Apple Inc. and issued by Goldman Sachs Bank USA, launched on August 20, 2019, exclusively for United States residents and designed for primary use via Apple Pay on compatible Apple devices.[1][2] It features a digital card in the Wallet app with optional titanium physical card for in-person purchases without Apple Pay, prioritizing user privacy by ensuring Apple does not access transaction data or sell it to third parties, advanced security through device-based authentication and tokenization, and financial incentives including Daily Cash back rewards of 1% on physical card purchases, 2% via Apple Pay, and up to 3% at select merchants, alongside no annual fees, late fees, or foreign transaction fees.[2][3][4] By 2024, it served approximately 12 million cardholders, recognized for its user experience in promoting healthier financial habits through tools like spending categorization and payment reminders.[5] Notable controversies include early 2019 allegations of gender-based disparities in credit limit approvals attributed to algorithmic decisions, later attributed by issuers to income reporting differences between joint and individual applicants, and a 2024 Consumer Financial Protection Bureau enforcement action fining Apple and Goldman Sachs over $89 million for failures in handling disputed charges, misleading customers on resolution processes, and inadequate customer service, affecting hundreds of thousands of users.[6][7]History
Announcement and Early Development (2018–2019)
Apple's exploration of a branded credit card began gaining public attention in early 2018, as the company sought to extend its ecosystem into consumer finance by leveraging the iPhone's Wallet app for seamless digital payments and transaction management. Reports indicated that Apple was in advanced discussions with potential banking partners to issue a rewards-focused card that would prioritize user privacy and integration with Apple Pay, aiming to challenge traditional credit card issuers burdened by high fees and opaque practices.[8] On May 10, 2018, Apple selected Goldman Sachs as its issuing partner, with Mastercard handling the payment network, marking a strategic alliance between the technology firm and the investment bank to co-develop a card emphasizing low costs and data security. This partnership reflected Apple's intent to disrupt the $1 trillion U.S. credit card market by embedding financial tools directly into its hardware and software, reducing reliance on third-party banks for everyday spending. Goldman Sachs, traditionally focused on high-net-worth clients, viewed the collaboration as an entry into mass-market consumer lending, while Apple maintained control over user experience and privacy protocols, ensuring it would not access detailed purchase data shared only with the issuer.[8][9] The Apple Card was officially announced on March 25, 2019, during a special event at Apple's Cupertino headquarters, where CEO Tim Cook positioned it as a tool for healthier financial habits through features like no annual or international fees and real-time spending insights via the Wallet app. The announcement highlighted the card's titanium physical design for select users, virtual card numbers for online security, and a commitment to privacy, with Apple stating it would never sell transaction data or require Goldman Sachs to share specifics beyond approval needs. Regulatory groundwork, including compliance with U.S. banking laws, had been underway through Goldman Sachs' Marcus division, enabling the product's structure as a Mastercard-backed charge card.[10][11][12] In the months following the announcement, Apple initiated pre-launch testing with a limited group of employees to refine the app integration and backend processes, expanding access to thousands of retail staff by June 2019 to identify operational issues before broader availability. This internal beta phase focused on usability within the iOS ecosystem, ensuring smooth synchronization of spending categories and payment notifications, while gathering feedback on privacy safeguards amid growing scrutiny of fintech data practices.[13][14][15]Launch and Initial Rollout (2019–2020)
The Apple Card became available in a preview phase on August 6, 2019, initially limited to select users including Apple employees who had tested the product internally.[16][17] This early access allowed a controlled rollout through the Wallet app on compatible iPhones, emphasizing the card's digital-first design integrated with Apple Pay for contactless transactions.[18] Users in this phase received invitations via email and could apply directly in the app, undergoing a credit check processed by Goldman Sachs.[19] Full public availability followed on August 20, 2019, extending access to all eligible U.S. residents with an iPhone running iOS 12.4 or later.[1][20] Enrollment required applicants to be at least 18 years old, provide a valid U.S. address, and pass a soft credit inquiry without impacting their credit score initially.[17] The process was streamlined within the Wallet app, taking minutes to complete, with instant approval for qualified applicants revealing a personalized APR based on creditworthiness.[18] From inception, the card prioritized virtual functionality, generating unique device-specific card numbers and per-transaction numbers to enhance security and privacy, reducing reliance on a single exposed card detail.[1] This digital emphasis supported seamless Apple Pay usage at millions of terminals, while physical card requests were available but secondary to the app-based experience.[21] By late 2019 into 2020, adoption grew steadily among U.S. iPhone users, with no reported geographic or phased restrictions beyond credit eligibility within the country.[20]Feature Expansions (2021–2023)
In May 2021, Apple introduced Apple Card Family, allowing account holders to share their credit line with up to five participants aged 13 or older, including co-owners who build credit history and participants subject to spending limits and parental controls without impacting the primary holder's credit.[22] This feature enabled co-owners—such as spouses—to merge credit lines for joint responsibility on payments and utilization, while participants received virtual cards for tracking and received Daily Cash rewards directly.[22] Available via iOS update in the United States, it required the primary holder to be 18 or older and pass eligibility checks, with all users needing compatible iPhones.[23] On April 17, 2023, Apple launched the Apple Card Savings account, a high-yield option integrated with the Wallet app offering an initial 4.15% annual percentage yield (APY) on deposits of Daily Cash and other funds, with no minimum balance or fees required.[24] Exclusive to Apple Card holders and co-owners, the account allowed automatic transfers of cash back rewards and manual deposits up to $250,000, managed through Goldman Sachs but accessible solely via Apple devices for enhanced security.[24] The APY was variable and subject to change based on market conditions, positioning it as a tool to encourage saving within the Apple ecosystem without traditional banking interfaces.[25]Partnership Transition and Recent Updates (2024–2025)
In October 2024, the U.S. Consumer Financial Protection Bureau (CFPB) imposed a total penalty of $89.8 million on Apple and Goldman Sachs for systemic failures in processing Apple Card customer disputes, including delays exceeding regulatory timelines and inadequate investigations that impacted thousands of consumers.[6] Goldman Sachs was required to provide $64.8 million in redress to affected customers and pay a $10 million civil penalty, while Apple faced a $15 million penalty for its role in oversight lapses.[26] This action highlighted operational strains in the partnership amid rising complaint volumes.[27] Apple accelerated efforts to wind down its issuing partnership with Goldman Sachs, which had been under strain since late 2023, by proposing an orderly exit within 12 to 15 months to allow for a seamless transition to a new issuer.[28] In January 2025, Goldman Sachs CEO David Solomon confirmed during an earnings call that the bank was open to concluding the arrangement ahead of the 2030 contract term, citing strategic shifts away from consumer lending.[29] By mid-2025, the Apple Card's active user base had expanded to approximately 18.2 million, reflecting sustained adoption despite the impending change.[30] Negotiations advanced with JPMorgan Chase as the frontrunner to assume the Apple Card portfolio, entering late-stage talks in July 2025 to handle issuing, underwriting, and customer servicing responsibilities.[31] [32] This potential shift aimed to stabilize operations, with JPMorgan leveraging its scale in credit card issuance to integrate the program without major disruptions to users.[33] Incidental software refinements, such as improved transaction monitoring in iOS 18 updates, supported ongoing fraud prevention efforts during the transition period.[34]Enrollment and Issuance
Application and Approval Process
The Apple Card application is conducted entirely through the Wallet app on an iPhone with iOS 12.4 or later, or via the Settings app on an iPad, requiring an eligible Apple device and an Apple ID signed in with two-factor authentication. Eligible applicants must be at least 18 years old (or the age of majority in their state), U.S. citizens or lawful residents with a valid U.S. residential address, and possess a Social Security number. The process involves tapping the "+" icon in Wallet, selecting Apple Card, and providing personal details such as full name, date of birth, Social Security number, annual income, and employment information; identity verification may require uploading a government-issued ID if discrepancies arise.[35][36] Goldman Sachs Bank USA, the issuer, evaluates applications using a soft credit inquiry from TransUnion as the primary bureau, supplemented by data from other credit bureaus, which does not affect the applicant's FICO score or credit report visibility to lenders. This pre-approval step delivers an instant decision for most users, often within seconds to minutes, based on algorithmic assessment of credit history, including FICO Score 9, payment reliability, debt-to-income ratio, recent inquiries, and self-reported income; qualified applicants receive a conditional offer detailing credit limit and APR without commitment.[36][37][36] Acceptance of the offer triggers a hard credit inquiry, potentially lowering the score by a few points temporarily, while factors like stable income above $21,000 annually and credit scores exceeding 600 improve approval likelihood, though no strict minimum exists. Apple ecosystem integration, such as prior Apple Pay transaction patterns, may inform supplementary risk models alongside traditional inputs, but denials often stem from recent delinquencies, bankruptcies, or high utilization; declined applicants may receive tailored guidance via the Path to Apple Card program to build eligibility over time.[36][38][39]Physical Card Options
The Apple Card's physical manifestation is an optional titanium card designed for use at merchants lacking Apple Pay acceptance, emphasizing a digital-first approach while providing a fallback for non-contactless transactions. Introduced alongside the digital card in August 2019, the titanium version features laser-etching for the cardholder's name on the front, with no printed card number, expiration date, CVV, or signature to enhance security by minimizing exposure of sensitive information.[40][41] Crafted from titanium alloy, the card presents a minimalist, white-colored aesthetic without customizable designs or colors, aligning with Apple's focus on simplicity and premium materials over personalization options. The back includes a magnetic stripe for swiping and an EMV chip for insertion-based payments, but lacks an NFC chip, preventing contactless tap-to-pay directly on the card itself and reinforcing reliance on the iPhone or Apple Watch for such functionality.[42][43] Users can request the physical card for free through the Wallet app after approval, with shipment typically occurring within days; it arrives ready for activation via the app without needing to enter details manually. Replacement for lost, stolen, or damaged cards follows the same process: users initiate a request in the app, the original is deactivated remotely for security, and a new card ships at no charge, ensuring continuity without fees or complex procedures.[44][1]Core Features
Rewards and Cashback (Daily Cash)
The Apple Card provides tiered cashback rewards known as Daily Cash, with rates varying by payment method and merchant category. Purchases made directly with Apple or at select partner merchants using Apple Card via Apple Pay earn 3% Daily Cash.[45] General transactions using Apple Pay yield 2% Daily Cash, while swipes with the physical titanium card return 1%.[46] These rates apply without caps, minimum spending requirements, or annual fees tied to the rewards program.[2] Select partners eligible for the 3% rate include Uber and Uber Eats for rides and deliveries, Walgreens for pharmacy and retail purchases, Nike for apparel and footwear, and Exxon/Mobil for fuel, among others; however, partnerships evolve, with changes such as Panera Bread shifting from 3% to the standard 2% rate effective February 1, 2025, and T-Mobile following suit in July 2025.[47][48] Users can view current 3% merchants in the Wallet app on iPhone by tapping the Apple Card and accessing the rewards section.[45] Daily Cash accumulates on eligible purchases after transactions post to the account, typically within one to two business days, and deposits automatically each day into the user's Apple Cash balance.[49] Rewards do not expire as long as the account remains in good standing, enabling indefinite accumulation and use via Apple Pay, transfers to linked bank accounts, or other spending options.[50] By January 2024, Apple Card holders had collectively earned over $1 billion in Daily Cash since the product's 2019 launch, reflecting substantial real-world uptake among its approximately 12 million users at that time.[51] For users heavily integrated into the Apple ecosystem or frequent Apple Pay adopters, the effective cashback yield often exceeds that of many traditional rewards cards, which typically offer 1-2% flat rates without the incentivized 3% digital tiers, though outcomes depend on spending patterns.[52]Fee Structure and Costs
The Apple Card eschews traditional penalty fees, charging none for annual membership, late payments, foreign transactions, or exceeding the credit limit, a policy that promotes accessibility and encourages full monthly payoffs by removing disincentives for minor infractions.[46][53] This fee-free approach, except for interest on balances, aligns with unsecured lending practices where issuers forgo upfront penalties to boost adoption among low-risk users who avoid carrying debt, while relying on interest to cover operational costs and defaults from revolvers.[54] Interest accrues daily on unpaid purchase balances at a variable annual percentage rate (APR) ranging from 17.99% to 28.24% as of October 1, 2025, with the specific rate assigned based on the applicant's credit score, income, and other factors evaluated at approval.[55][56] The upper end of this spectrum—exceeding 25% for many—has faced scrutiny for its severity on users who carry balances, as it amplifies debt costs in an environment of elevated prime rates, though such tiers reflect actuarial pricing calibrated to individual default probabilities rather than uniform leniency.[34]| Fee Type | Charge |
|---|---|
| Annual Fee | None |
| Late Payment Fee | None |
| Foreign Transaction Fee | None |
| Over-Limit Fee | None |
| Cash Advance Fee | None (cash advances not offered) |