What Is the Apple Card?

What you need to know about Apple's credit card

The Apple Card and reporting options, shown in the iOS Wallet app

Apple Inc.

With the Apple Card, Apple hopes to revolutionize credit cards in the same way that it transformed music, computers, phones, and other markets over the years. And it might work: Apple Card delivers traditional combination of great design and user-friendly features. Learn all about the most important aspects of Apple Card here.

What Is the Apple Card?

Apple Card is a Mastercard-branded credit card offered by Apple and Goldman Sachs. Apple Card is tightly tied to your iPhone, lives in the Wallet app on iOS devices, and is designed to be secure, private, and to help users pay less interest.

Is the Apple Card a Physical or Virtual Credit Card?

Both. Apple is positioning the card as integral to digital payments using Apple Pay, but cardholders also get a physical Apple Card credit card. As you might expect from Apple, the card is stylish. It's a laser-etched piece of titanium with just the Apple logo and the cardholder's name on the front.

What's the Interest Rate for Apple Card?

Interest rates on the Apple Card are 13.24%-24.24%. The rate you pay depends on your credit.

What's the Annual Fee for Apple Card?

Unlike many other credit cards, Apple Card has no annual fee. In fact, there are no additional fees other than interest charges on balances carried month to month.

When Are Payments Due?

Payments on your Apple Card balance are due on the last day of the month. It's unclear whether Apple will allow users to change the due date.

What Is the Penalty For Missed Payments?

There is no penalty fee for missing a payment. Apple will not increase your interest rate if you miss a payment.

What Cash-Back Rewards Does Apple Card Offer?

The Apple Card offers cash-back rewards, called Daily Cash, on all purchases, including purchases made online, in apps, or in stores. Different types of purchases receive different amounts of cash back:

  • 3% cash back: All purchases from Apple get this. This includes purchases from the Apple Store, iTunes, the App Store, in-app purchases, Apple Music, and more.
  • 2% cash back: Every transaction made using Apple Pay gets 2% cash back.
  • 1% cash back: All other purchases net you 1% cash back.

By default, Daily Cash is added to your Apple Cash card, which also lives in the Wallet app. Daily Cash, as the name suggests, is made available every day.

Wait: What's an Apple Cash Card?

This is a bit confusing because Apple uses very similar names for related things. Apple Cash is not the same thing as an Apple Card, but it is basically the same thing as Apple Pay Cash. Confused yet? Let's work this out.

In the Wallet app that comes pre-loaded on the iPhone, there's a black card labeled Apple Pay Cash. This is a virtual card used to send a receive money with friends and family using via Apple Pay.

It's a bank-issued virtual card that stores money for you and connects to your bank account. Because it's not a credit card, setting up the card won't impact your credit and there is no interest charged. The only fees are for transferring money from Apple Cash to your debit card and for international transactions.

Setting up Apple Cash is quick and easy. In the Wallet app, tap the Apple Pay Cash card, then tap Set Up Now, and follow the onscreen instructions.

What If I Don't Have an Apple Cash Card?

Not everyone has, or wants, an Apple Cash card. You need to set one up if you want to use Apple Pay Cash or the Apple Card's cash-back rewards. If you prefer not to get an Apple Cash card, Daily Cash rewards from your Apple Card become monthly statement credits.

How Does Apple Card Help Me Track My Spending?

Apple Card offers reporting in the Wallet app to help you track your spending. This includes weekly and monthly summaries, with purchases grouped into color-coded categories. You can also drill down into the categories to see individual purchases. All purchases show the full name of the business you bought from, rather than an abbreviated code like with many credit cards.

How Does Apple Card Help Me Pay Off My Balance?

Apple has created a set of features for Apple Card that are designed to help you pay off your balance as quickly possible. Among these features are:

  • Reminders: Apple Card sends you notifications so you don't miss an upcoming payment and have the chance to pay as little interest as possible.
  • Automatic Payments: You can schedule automatic payments weekly or biweekly.
  • Interest Projections: If you don't pay your full balance each month, Apple Card lets you see how much interest you'll pay. Enter the proposed amount you'll pay and the Wallet app shows you how much interest you'll pay over time.
  • Payment Suggestions: If you have a balance, Apple Card provides suggested payments to help you pay off what you owe faster and thus pay less interest.

How Is Security Handled with Apple Card?

There are multiple layers of physical and digital security built into Apple Card to prevent theft.

When you get your Apple Card, a unique ID number is created and stored in your iPhone's Secure Element. This is the same ultra-secure part of the iPhone that stores fingerprint and face data for Touch ID and Face ID.

When you make an Apple Pay purchase using Apple Card, the ID from the Secure Element is used, plus a one-time-use code generated for the transaction. Lastly, you authorize payments with Touch ID or Face ID on your phone, so even if someone gets ahold of your phone, they can't make purchases.

There's security on the physical card, too. In addition to the standard EMV chip, there are no numbers printed on the Apple Card: neither the account number nor the CVV are visible. So, there's no likelihood that your card number can be stolen in a restaurant or store, which are some of the most common credit-card-theft situations. The Apple Card doesn't even have your signature on it.

If you think your card number has been stolen, you can freeze the card right from the Wallet app.

What Are Apple Card's Fraud-Prevention Features?

In addition to these security features, Apple Card offers fraud-prevention features that let you see extra detail about every transaction. This includes the name of the business, the amount and date, the business's location on a map, and your transaction history with that business.

Can Apple See My Apple Card Purchases?

No. All of the transaction processing, projections, and reporting happen right on your iPhone, so no purchase data is shared with Apple or Goldman Sachs.

How Do I Sign Up For Apple Card?

As of this writing, you can't. Apple Card will debut in Summer 2019. When it's released, you'll be able to apply on your iPhone.