Apple Launches Virtual Credit Card, Touting Security, Fee-Free Model
Apple announced availability of its virtual credit card Tuesday, billing it as a “new kind of credit card” the company created to help customers “lead a healthier financial life.” The card has no annual or late fees. Variable interest rates…
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range between 12.99 and 23.99 percent based on a user’s credit history. In a “new level of privacy and security,” the virtual card is stored in the Wallet app on an iPhone; a "titanium" hard version with a chip can be used at locations that don't have Apple Pay, but it doesn't have identifying information. Users who want to use Apple Card to buy an item online will find their card number, PIN and expiration date in the Wallet app on their phone. Because of the security and privacy architecture created for its credit card, Apple “does not know where a customer shopped, what they bought or how much they paid,” said the company, which is using Goldman Sachs as its issuing bank and Mastercard for its global payments network. The Daily Cash rewards program returns to users 2 percent of purchase prices for items bought with the card via Apple Pay and 3 percent on goods bought directly from Apple, including retail and app stores and Apple services, said the company. Purchases made with the physical titanium card net 1 percent back. Apple partnered with Uber to give customers 3 percent Daily Cash when they use Apple Card with Apple Pay for Uber and Uber Eats and will have similar promotions with other merchants, it said. Daily Cash is added to customers’ Apple Cash card each day and can be used right away for purchases using Apple Pay, to put toward an Apple Card balance or to send to friends and family in Messages, said the Cupertino company. Owners of iPhone 6 and later phones can apply for the card via the Wallet app. Users can reach customer support 24/7, said Apple, which uses machine learning and Apple Maps to tag transactions to merchant names and locations in Wallet. The card's app shows color-coded weekly and monthly spending summaries, payment due dates and balance.