Apple unveiled their new Apple Card credit card at Monday’s media event. While many details were supplied during the media shindig, more details are surfacing.
TechCrunch has done some digging and has reported on what the publication’s Matthew Panzarino calls Apple’s “version 1” credit card. Panzarino calls it that as he says the company is “going to be iterating on the concept with new features and benefits.”
Apple says its card will offer interest rates that are among the lowest in the industry. The rates will vary between 13% and 24%, which is standard for the credit card industry. However, Panzarino reports two things Apple will be doing to set itself apart from the rest of industry.
First, there is no “penalty interest rate” on the Apple Card. Apple mentioned on Monday that there would be no fees for late payments. That led some observers to speculate Apple would penalize late payers by raising their interest rates. That is not the case.
Penalty rates are an increase of your interest rate if you fail to pay on time. That is not true. Apple Card has no late fees and no penalty rates. You will continue to pay your agreed upon interest rate on your outstanding balance, but that rate will not go up. It will impact your credit score, as Apple does do standard reporting.
Apple will also attempt to “place Apple Card users at the low end of their interest rate tier.” meaning the Cupertino firm will try to shift you to a lower rate as opposed to the interest rate that exactly matches your credit score.
Other details of note about the credit card is that Apple Cash is not required to pay your bill, cash back earned or any other money users have in their Apple Cash balance can go towards their balance if they so desire.
There is no support for multiple users or shared cards, although replacement cards are free. Users will be required to have two-factor authentication set up.
The Apple Card will also allow you to generate a new credit card number any time, via the Wallet app. Your CVV will refresh with every transaction. This makes the Apple Card a perfect solution for instances when you may be required to supply your card number to someone you may not completely trust.
Instead of points or miles, or credits for Apple products, Panzarino says Apple wanted “the simplest, most universal benefit structure,” which is cash.
The full TechCrunch report is available here, and makes for interesting reading.