Credit Card News
Chase Officially Set to Take Over Apple Card Issuance
After years of rumors, it’s official: the Apple Card is hopping to a new issuer.
About the Chase-Apple Card Deal:
This week, Apple officially announced that Chase would become the new issuer of the Apple Card. The bank will be stepping in for Goldman Sachs, who originated the card in partnership with Apple, marking Goldman’s first entry into the consumer credit card space.
While this update is being announced now, Apple estimates that the transition will take approximately 24 months to be completed. In the meantime, they advise that customers can continue to use their card as normal. Moreover, they note that the card will remain free of fees and allow cardholders to earn up to 3% Daily Cash on purchases.
Also staying the same is the card’s processing partner. Despite reported interest from Visa, Apple Card will continue to utilize the Mastercard network.
According to an FAQ, when Chase does take over issuance, current Apple Card customers will not need to reapply. Additionally, while a Chase high-yield savings product will become available, cardholders will be given the choice to keep their Goldman account or make the transition to Chase.
More on the Apple Card:
Launched in 2019, the Apple Card offers several unique twists on a conventional credit card. For one, instead of earning cash back that’s delivered at the end of a statement period, Daily Cash is accrued within hours of purchases posting. Speaking of statement periods, all Apple Card balances are due at the end of the following month, rather than being spaced out throughout the month.
As for rewards, the card earns 2% Daily Cash on all purchases made using Apple Pay. Cardholders can also earn 3% Daily Cash on Apple purchases as well as on purchases from select partner brands, including Uber/Uber Eats, Walgreens, Nike, Booking.com, and more.
What They’re Saying:
Commenting on the impending switch of issuers, Apple’s VP of Apple Pay and Apple Wallet Jennifer Bailey said, “We’re incredibly proud of how Apple Card has transformed the credit card experience for customers by delivering innovative tools that empower users to make healthier financial decisions. Chase shares our commitment to innovation and delivering products and services that enhance consumers’ lives.”
Bailey added, “We look forward to working together to continue to provide a best-in-class experience and exceptional customer service with Apple Card.”
Elsewhere, Chase’s CEO of Card & Connected Commerce Allison Beer remarked, “Apple is an iconic brand recognized globally for its innovation, design excellence, and commitment to delivering exceptional customer experiences. We share a commitment to supporting consumer financial health, and we’re proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program.”
My Thoughts:
I was starting to think that this would never come. Then again, I can’t believe that this switch is going to take two more years!
With that in mind, while Apple has shared what isn’t changing, they haven’t yet divulged what will change. According to previous reports, some of the headaches Goldman had with the Apple Card involved some of the unique features. For example, having the same payment due date for every cardholder apparently makes customer service and addressing issues pretty difficult. So, we’ll need to see what type of deal Apple and Chase worked out.
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