Goldman thought they were going to be able to fleece Apple's customers, but they can't. Good job Apple!
[Still paraphrasing Levine.] As one would expect, that didn't go well. Goldman Sachs as a company is geared to do complex low-volume, high-margin deals. Consumer banking by its very nature is high-volume, low-margin. To make things "worse", consumer finance is also very heavily regulated to discourage routinely fleecing your customers.
Which is how you get a vampire squid squad trying to feed off of a decaffeinated strawberry juice carton. Someone is going to be disappointed, and it's not the juice carton.
GS were probably willing (initially) to pay a hefty sum to get into that market, so then the question becomes: why Apple? At the time Apple had a net float of >$200B. When you have that much cash and assets to deal with, you no longer seek the help of a bank. You are a bank.
In a funny twist, their Marcus brand is still alive at least in the UK, and they are offering some of the (supposedly)[ß] best front line savings rates to attract customers. I've never seen anyone with their brand of card, though, so clearly their offered rates are not attractive enough.
ß: few other UK high street banks are offering even better rates, but every single one of them has set a ludicrously low cap on the amount they pay good rates on before dropping to just-about-tolerable rates for whatever goes above the threshold.
And who could afford to give out bonuses in this economy?
CIBC is currently at 4.61%!
Note: I'm aware it's a Canadian bank, but this particular branch of it does business in the US and this is a normal USD account.
> Goldman Sachs as a company is geared to do complex low-volume, high-margin deals.
It is funny that you think Goldman is so monolithic. They have 45,000 employees, and a vast array of businesses. As a related point, JPMorgan is both a mega commercial/retail bank plus ibank. They do both types of transactions.
I'm not saying you can't have a favorite gladiator, I'm saying you can't pretend this isn't pugilism.
It is by far my favorite credit card.
There are definitely cards with better rewards, but few with such a straightforward and simple cash back program. Also, the rewards are not bad by any means. I also like the tight integration with the high yield savings account, which again is not the best rate possible, but makes up for it with the UI of its software and overall simplicity and ease of use.
> Giving a month to pay off a balance I believe is referred to as a "grace period" which is pretty common place in credit cards. A month is nice, but I believe most cards are usually around 4 weeks.
I'm talking about the actual due date, not the grace period which is a different thing entirely. You have until the last day of the following month to pay off the balance to avoid incurring interest, which is different than any other credit card I've ever used. Usually the due dates are a specific day of the month which often changes every month.
What's wrong with pugilism?
Failing to process or share consumer disputes: Apple Card users were directed to dispute transactions through a “Report an Issue” feature in the Wallet app. For some disputes, Apple sent consumers a separate link in the Messages app asking for more information. Apple failed to send these disputes to Goldman Sachs if the second form was incomplete. Even after Goldman Sachs alerted Apple to this issue, the problem persisted. As a result, neither Apple nor Goldman Sachs investigated tens of thousands of such disputes and cardholders were unfairly held responsible for disputed transactions.
Failing to investigate cardholder disputes: For the disputes that Apple did send to Goldman Sachs, the bank failed to consistently send acknowledgment notices within 30 days, conduct reasonable investigations, or send resolution letters explaining the determinations of its investigations within 90 days. These failures led to Goldman Sachs illegally placing damaging information on consumers’ credit reports and holding cardholders responsible for potentially fraudulent or unauthorized purchases.