Apple card: the fine print that Tim Cook didn’t mention
Apple Card is a credit card that exists as a physical card with details on an iPhone. Today Apple introduced the Apple Card for the first time – and made a pretty compelling argument about how the card could be better than any other credit card. The Apple Card will launch later this year, and we’ll know more about how you’ll get that card at that time. For now, we’re digging into details released by Apple – especially when those details don’t appear on stage today at Apple’s event.
1. You NEED an iPhone
You can’t have an Apple card without owning an iPhone. Each Apple card is uniquely attached to your unique iPhone. Specific models have yet to be released at the time of this article going live, but given the details we have now, it looks like we’ll need an iPhone with Face ID or Touch ID.
It is likely that the oldest iPhone that will be able to use an Apple card will be the iPhone 8, or MAYBE the iPhone 7. By the end of this year, Apple will no longer list the iPhone 7 on its. site or won’t put it on sale in their store if they follow the tradition, so count on 8. Apple might also bring back Touch ID in an in-screen fingerprint scanner, but that’s less important as the following detail.
2. Locked up
“When you first get your Apple Card,” says Apple’s official Apple Card webpage, “a unique device number is created on your iPhone. Then it’s locked into the Secure Element. C ‘is the area where other sign-in information is stored – not accessible by any means other than your preferred sign-in method. As such, every time you use your Apple card, you must have your iPhone turned on, unlocked and available for viewing.
3. One-time security code
When using Apple Card, you need to use Face ID or Touch ID on your phone to authorize card payment. When you authorize successfully, you get a unique, unique and dynamic security code from the app, which you then plug into the credit card scanner at your point of transaction.
4. No charge
Apple suggests they have “no annual fees” and “no cash advance fees” and “no international fees”. No over limit fees or return payment fees. They also suggested this morning that there would be “no hidden charges”. Apple also claims that their goal is to “provide some of the lowest interest rates in the industry” and that if you miss a payment you don’t have to worry because they “don’t charge a penalty rate either. “.
Two caveats reside in this collection of complaints. For the first part, the bit with the Apple Toll Free Card, Apple has some fine print: “Variable APRs range from 13.24% to 24.24% depending on creditworthiness. Rates in March 2019. “Regarding penalty rates, well…” Late or missed payments will result in additional interest accruing on your balance. ”
So Apple claims that they don’t charge a penalty rate if you miss payments. But they also suggest that missed payments will result in “additional interest building up on your balance.” So even though you won’t have a $ xx penalty fee on your record, the amount you will need to reimburse Apple will continue to increase over time.
5.Apple Card, Apple Wallet, Apple Pay Cash Card
You can get an Apple Wallet now and use it to pay for products and services in places that specifically accept Apple Pay. Users have the option of getting an Apple Pay Cash card in the Apple Wallet app. This card is like a debit card, but the money is handled by FDIC member Green Dot Bank.
Apple Card is a credit card that exists as a physical card that does nothing unless it’s connected to your iPhone. (See: 1). The Apple Card gives users 1, 2, or 3% “cash back” (they call it “daily cash”) on all purchases, and that money goes to one of two places. The “Daily Cash” can go to a user’s Apple Cash card, or it can be placed “as a credit on your statement balance”.
When it comes to credit, banks, non-banks (as Apple basically puts it), and digital money, even the simplest service can be confusing. Even on a no-fee card, credit card debt can add up quickly – we’ll see how that plays out later this year.