This means that the card would earn a total of $504.46 in cash back per year.Īpple Card * vs. The $16,036 spent through Apple Pay would translate to $320.72 in cash back, and the remaining $14,867 that could reasonably be charged to a credit card would earn $148.67 back. For our calculations, we are assuming this hypothetical household puts $32,072 per year on a credit card, and half of those expenditures are paid for via Apple Pay-meaning $16,036.īased on news articles, and adjusted for inflation, Forbes Advisor estimates that our example household spends $1,169 annually on Apple products and in the App Store, which adds up to $35.07 in cash back. The card earns 2% on purchases made via Apple Pay, which is available at outlets in almost every spending category. In addition, we have to make some assumptions about consumer behavior when we look at the Apple Card. The 70th percentile of wage-earning households bring in $107,908 annually and we base spending on that number. Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. To determine the rewards potential of the Apple Card * we have to look at the bonus categories and calculate what an American household might spend in those areas. If you choose not to set up Apple Cash, then your daily rewards will accumulate and can only be applied towards your card balance. Use it to make a payment towards your Apple credit card bill.Transfer money via text message to a family member or friend who has Apple Cash.This balance can then be used at any time to: All earnings from the Apple Card * will be added each day to your Apple Cash account. To access all of the options for your cash rewards, which the Apple Card * calls “Daily Cash”, you’ll have to set up an Apple Cash account. Get 3% back on everything bought from Apple and from participating partners, 2% back every time something is bought using Apple Pay and 1% on all other purchases. The Apple Card * earns rewards at the following rates: Most people will find they can get better results with a card that offers bigger overall rewards without having to remain loyal to Apple Pay as their main payment method. Plus all payments made using the physical card will only qualify for 1% cash back.īut perhaps most importantly, the card’s earnings structure for all but the thinnest slice of mobile-first consumers just isn’t competitive in a landscape filled with rewards cards. And unlike most credit cards, you won’t actually receive the physical card automatically once you’re approved-you have to request it. If you’re making a payment somewhere that doesn’t accept Apple Pay and you want to use your Apple card account, you’ll have to use the physical titanium card to make your payment. The card charges no annual fees, foreign exchange fees or late fees, lets you access your cash-back earnings the day after you make a purchase and is paired with an app designed to help you slice and dice the pros and cons of paying off a credit card over time.Īlthough it’s got some nice attributes, it does have a few bruised parts to be aware of. You’ll earn a sweet 3% back on everything bought from Apple and from participating partners, 2% back every time something is bought using Apple Pay and 1% on all other purchases. For starters, if you have an iPhone you can apply for the card in just a few minutes via the Wallet app, and if approved can use the card immediately anywhere that accepts mobile wallet payments. Apple’s first foray into the credit card market created a product seeded with some appealing features.
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