Breaking: Major Partnership Changes Ahead JPMorgan Chase is in advanced talks to replace Goldman Sachs as the Apple Card's issuing partner, with negotiations accelerating throughout 2025. This seismic shift could reshape the Apple Card landscape—and it might be the perfect reason to apply now before potential changes take effect.
The Apple Card is a solid choice for Apple ecosystem loyalists who regularly use Apple Pay, offering competitive cash back rates and zero fees. However, its reliance on Apple Pay for higher earning rates and lack of traditional credit card perks limit its appeal for broader audiences.
Apple Card Overview
- Annual Fee: $0
- Welcome Bonus: None
- Earning Rate: 3% Apple purchases via Apple Pay, 2% all Apple Pay purchases, 1% physical card purchases
- APR: 18.24% - 28.49% Variable
- Key Benefits: No fees, Daily Cash, Apple ecosystem integration
- Credit Score Needed: Fair to Excellent
- Network: Mastercard
- Current Issuer: Goldman Sachs (transitioning to JPMorgan Chase)
Why the Partnership Change Matters (And Why You Should Apply Now)
Here's what's happening behind the scenes: Goldman Sachs, facing billions in losses from its consumer lending ventures, is actively seeking to exit the Apple Card partnership. Meanwhile, JPMorgan Chase—America's largest credit card issuer—is positioning itself as the natural successor.
The timeline is accelerating. Reports suggest Apple has informed JPMorgan that it's the "preferred choice" to replace Goldman Sachs, with talks intensifying in early 2025.
Why apply now? Current Apple Card holders will likely be grandfathered into existing terms, but new applicants after the transition might face different approval criteria, terms, or features. JPMorgan's more conservative approach to credit could mean stricter approval standards down the line.
Plus, the transition will likely eliminate CoreCard, the smaller processor that developed many of Apple Card's distinctive features like the payment wheel and first-of-the-month billing cycle. These beloved features might disappear as JPMorgan integrates its own systems.
The Apple Card's Unique Reward Structure
The Apple Card operates on a simple three-tier system that rewards your loyalty to Apple's ecosystem:
3% Cash Back: The Apple Premium
You'll earn 3% back on Apple purchases when using Apple Pay—whether that's a new iPhone, MacBook, or App Store purchases. This rate also applies to select merchants that partner with Apple, though the list remains limited.
Real-world value: If you buy the new $1,299 MacBook Air, you'll earn $39 in Daily Cash. Not earth-shattering, but it adds up for frequent Apple purchasers.
2% Cash Back: The Apple Pay Advantage
This is where the Apple Card shines for many users. Every Apple Pay purchase earns 2% back, matching many of the best flat-rate cash-back cards on the market. The catch? You must use Apple Pay.
The Apple Pay reality check: While Apple Pay acceptance has grown dramatically, you'll still encounter holdouts. Major retailers like Walmart don't accept Apple Pay, and many smaller businesses, food trucks, and cash-only establishments remain Apple Pay-free zones.
1% Cash Back: The Physical Card Penalty
Use your physical Apple Card, and you'll earn just 1% back—well below the industry standard of 1.5% for no-annual-fee cards. This rate feels almost punitive in today's competitive landscape.
What Makes Apple Card Different: The Daily Cash Advantage
Unlike traditional rewards cards that make you wait until month's end, Apple Card delivers Daily Cash the same day your purchase processes. It's a small psychological win that feels surprisingly satisfying.
Your Daily Cash options include:
- Apple Cash: Instantly spendable through Apple Pay
- Statement credit: Applied directly to your card balance
- Apple Savings: Automatically deposited into a high-yield savings account from Goldman Sachs
Zero Fees: Apple's Consumer-Friendly Approach
The Apple Card eliminates all fees—no annual fee, foreign transaction fees, late fees, or over-limit fees. This is genuinely impressive in an industry that often nickel-and-dimes consumers.
The late fee elimination is particularly noteworthy. Most cards charge up to $40 for late payments, making this feature valuable for anyone who occasionally misses due dates.
Apple Ecosystem Integration: More Than Just Payments
The Apple Card lives entirely within your iPhone's Wallet app, offering unprecedented transparency into your spending patterns. You can track purchases by category, see color-coded spending maps, and get real-time balance updates.
The payment wheel is a standout feature that shows exactly how much interest you'll pay based on different payment amounts. It's a simple tool that could save users hundreds in interest charges by encouraging larger payments.
Detailed Pros and Cons Analysis
Pros
- Complete fee elimination: No annual, late, foreign transaction, or over-limit fees saves money compared to most cards.
- Daily reward posting: Instant gratification beats waiting 30+ days for rewards to post.
- Apple ecosystem synergy: Seamless integration with iPhones, Apple Pay, and Apple services.
- Privacy focus: Apple emphasizes that Goldman Sachs won't sell your data to third parties.
- High cash back on Apple purchases: 3% beats most alternatives for Apple ecosystem spending.
- Simple redemption: No point transfers, categories, or expiration dates to manage.
Cons
- No sign-up bonus: Most competitors offer $150-$200 welcome bonuses that could take years to earn back with daily spending.
- Apple Pay dependency: The 2% rate requires Apple Pay acceptance, limiting earning potential.
- Weak physical card rewards: 1% is below industry standards for no-annual-fee cards.
- Limited additional benefits: No purchase protection, extended warranty coverage, or travel insurance.
- Regulatory concerns: The CFPB fined Apple and Goldman Sachs nearly $90 million in 2024 for customer service issues.
- Partnership uncertainty: The Goldman Sachs exit creates questions about future terms and features.
How Apple Card Stacks Up Against Alternatives
Apple Card
- Annual Fee: $0
- Earning Rate: 3%/2%/1%* (*requires Apple Pay for higher rates)
- Sign-up Bonus: None
- Special Features: Apple ecosystem integration
- Best For: Heavy Apple users
Capital One VentureOne
- Annual Fee: $0
- Earning Rate: 1.25 miles per $1 on everything
- Sign-up Bonus: 20,000 miles
- Special Features: Flexible travel redemptions
- Best For: Those wanting travel rewards flexibility
Citi Double Cash
- Annual Fee: $0
- Earning Rate: 2% on everything (1% when you buy + 1% when you pay)
- Sign-up Bonus: None
- Special Features: Simple flat rate structure
- Best For: Simplicity seekers
The verdict: Apple Card wins for heavy Apple users and those who primarily shop at Apple Pay-accepting merchants. For everyone else, the <a href="https://oc.brcclx.com/t?lid=26674435" target="_blank" rel="noopener">Capital One VentureOne</a> offers more flexibility with travel redemptions and a welcome bonus, while the Citi Double Cash provides straightforward 2% everywhere.
Who Should Apply for the Apple Card?
Perfect For:
- Apple ecosystem devotees: If you buy iPhones, Macs, and subscribe to Apple services, the 3% rate adds up
- Apple Pay power users: Those living in areas with widespread Apple Pay acceptance
- Fee-sensitive consumers: The zero-fee structure saves money for many users
- Credit building: The soft pull pre-approval and family sharing features help build credit responsibly
Skip If:
- You want traditional credit card perks: No purchase protection or travel benefits
- Physical card is your preference: 1% earnings are subpar
- You shop at Apple Pay holdouts: Walmart, Costco, and many small businesses don't accept Apple Pay
- Welcome bonuses matter: Most alternatives offer $150-$300 in initial rewards
Recent Developments You Should Know
The Apple Card hasn't had a smooth ride lately. In October 2024, the Consumer Financial Protection Bureau imposed an $89 million fine on Apple and Goldman Sachs for "customer service breakdowns and misrepresentations that impacted hundreds of thousands of Apple Card users."
Despite regulatory challenges, the Apple Card won J.D. Power's award for "Best Co-Branded Credit Card for Customer Satisfaction with No Annual Fee" for three consecutive years. This suggests that while institutional issues exist, individual user satisfaction remains high.
Maximizing Apple Card Value: Strategic Tips
1. Time Apple Purchases Strategically
Watch for back-to-school promotions, Black Friday deals, and new product launches when Apple offers additional incentives on top of your 3% rewards.
2. Embrace Apple Pay Everywhere
Use Apple Pay's store locator to find participating merchants near you. You might be surprised how many local businesses now accept contactless payments.
3. Leverage Apple Savings Integration
The Apple Savings account allows automatic Daily Cash deposits and has reached over $10 billion in deposits, suggesting competitive rates that make parking your rewards worthwhile.
4. Consider Pairing Strategies
Use Apple Card for Apple Pay purchases and pair it with a card like the Capital One VentureOne for situations where Apple Pay isn't accepted.
What the JPMorgan Transition Could Mean
JPMorgan is reportedly seeking to pay less than face value for the roughly $17 billion in Apple Card loans due to elevated losses on the cards. This suggests the partnership might face changes:
Potential positives:
- More stable, established banking relationship
- JPMorgan's broader financial services ecosystem
- Possible international expansion opportunities
Potential concerns:
- Loss of unique features developed by CoreCard
- Stricter credit approval standards
- Changes to current benefits or terms
Application Process: iPhone Required
Applying for the Apple Card is refreshingly simple—if you have an iPhone. The entire process happens within the Wallet app, often providing instant decisions. Apple offers a soft credit pull to check your approval odds without impacting your credit score.
Requirements typically include:
- iPhone running iOS 12.4 or later
- U.S. citizenship or permanent residency
- 18+ years old (or 13+ for family sharing)
- Fair to excellent credit (generally 660+ credit score)
Frequently Asked Questions
Q: Will my Apple Card terms change when JPMorgan takes over? A: Current cardholders will likely be grandfathered into existing terms, but this hasn't been officially confirmed. The transition timeline remains uncertain.
Q: Can I use Apple Card internationally? A: Yes, with no foreign transaction fees. However, you'll earn only 1% if the merchant doesn't accept Apple Pay.
Q: How does Apple Card Family work? A: You can add up to five family members, designating co-owners (equally responsible) or participants (authorized users). It's particularly useful for families wanting to build credit together.
Q: What happens to Apple Savings if I close my Apple Card? A: Your Apple Savings account can remain open independently, though you won't earn Daily Cash deposits without an active Apple Card.
Q: Is there a credit limit increase process? A: You can request credit limit increases through the Wallet app, though Goldman Sachs (and eventually JPMorgan) makes the final decision based on your creditworthiness.
Q: Can I pay my Apple Card with other cards? A: No, you cannot pay your Apple Card balance using other credit cards. Payments must come from bank accounts, debit cards, or Apple Cash.
The Bottom Line: Timing Is Everything
The Apple Card offers genuine value for Apple ecosystem users who frequently shop with Apple Pay. Its zero-fee structure, daily reward posting, and seamless iPhone integration create a user experience that's hard to replicate elsewhere.
But here's the key insight: With JPMorgan Chase negotiations advancing and Goldman Sachs eager to exit, current terms and features might not last indefinitely. If you're on the fence, applying now could lock in the existing benefits before potential changes take effect.
My recommendation:
- Apply immediately if you're a heavy Apple user with good credit who shops primarily at Apple Pay-accepting merchants
- Consider alternatives if you want welcome bonuses, traditional credit card perks, or primarily use physical cards
- Wait and watch if you're unsure—but recognize that favorable terms might change during the transition
The Apple Card represents Apple's vision of simplified, transparent credit. Whether it fits your financial life depends largely on how deeply you're embedded in Apple's ecosystem. For the right user, it's an excellent choice. For others, cards like the Capital One VentureOne or Capital One Quicksilver might deliver better value with more flexibility.
Ready to learn more about maximizing your credit card strategy? Check out our guide to choosing between Chase Sapphire cards or explore The Chase Quadfecta strategy for building a comprehensive rewards portfolio.
This post contains affiliate links. We may receive compensation when you click on links to those products. Terms apply.
