Probably payment on GS backend was processed late even if customer initiated payment on the due date. So customer was charged interest.

I was an early adopter of the AC during my Apple glazing days. Everybody has the same due date (end of month) and GS systems just could not handle the volume.

I remember an auto payment taking a week to withdraw from my bank account and applied to account. I wasn’t charged interest and didn’t have an installment at the time though. I believe installments were introduced a year later after AC was generally available.

> an auto payment taking a week to withdraw from my bank account

As an aside, for anyone using an Apple Card today, a handy way around this is to not make payments via ACH. Use your debit card with Apple Pay to pull money instantly into Apple Cash, then use that to instantly pay your credit card bill. An extra step, sure, but it's instant.

Related: Most banks let you pay credit cards over the phone using a debit card. This is usually intended for debt collection though, so you may have to have to call the debt collection phone number to do it. Of course the main use case for tech people is maxing debit card rewards until they close your account :)

Churning? Can u tell me more abt that please in the process of doing a few but dont want to mess up.

Any tips?

This isn’t needed anymore. Credit is applied to account if autopay is setup. I guess it’s only reversed if ach fails due to insufficient funds.

Personally I have a bank account that I use solely for the purpose of auto pay/ach. It’s only funded with enough money to pay creditors.

Why would you even use a credit card if you have the money? You don't have to bother with the loan aspects of the card then (and the paying off). You could just use a debit card.

This is what keeps me from even considering an apple card, I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.

Couple reasons I rarely use debit cards, I use a credit card and pay it off every month:

If it gets stolen/someone else uses it, all I need to do is tell my bank, and since I have not paid the debt, I am not out any money. It is on the bank. If I was using a debit card, it may take a month+ to be investigated/money returned.

Emergencies/availability having available credit is useful, most of my money is in investment accounts, even if only to get higher money market interest rates. I can transfer to my bank account, but that takes time. Having ~10k in credit available for if I need a last minute plane/hotel/hospital is good in an emergency. Once I'm safe I can move the money around as needed.

Cash back, coming from the USA credit cards give me 2-3% cash back. That is significant considering I use them for all purchases.

I do not believe that credit card accounts have a negative affect on mortgages. They are different types, with credit cards being revolving. As long as you are paying it off and not maintaining a valence, then it should only be a net positive (shows credit history of paying debts).

> If it gets stolen/someone else uses it, all I need to do is tell my bank, and since I have not paid the debt, I am not out any money. It is on the bank. If I was using a debit card, it may take a month+ to be investigated/money returned.

But if the bank still claims it was you it is still in question and they still want their money back, with interest.

> I do not believe that credit card accounts have a negative affect on mortgages. They are different types, with credit cards being revolving. As long as you are paying it off and not maintaining a valence, then it should only be a net positive (shows credit history of paying debts).

Ah I see, this does definitely not apply here in Europe. The amount you can borrow for a mortgage is reduced by the amount of loans you have, including the maximum spending limit on credit cards (even if you never use said card at all!). This is why I have a card with only 1000 euro spending limit, just for some backwards sites that don't support debit cards (there are still some unfortunately.

Credit cards have strict laws regarding handling of fraudulent transactions. As long as you report it in a timely manner, your liability is limited to $50. The burden of proof is on the bank.

> Why would you even use a credit card if you have the money?

I get ten percent cash back on groceries right now. It is subsidized in a sense, and builds out an advertising portfolio on me - those are questionable - but it is money in my pocket.

Oh really? I never get any on my cards. Definitely not for things like groceries. Once in a blue moon they have some discounts in the credit card app but they are always discounts based on the RRP price which are totally useless because the same article is cheaper on amazon at street price.

I do have a "credit card" because some sites refuse to accept debit ones. But no cashbacks or anything. Maybe it differs by bank (I use caixabank in Spain)

The one thing I do like as a reward is that caixa funds several museums and you can get in for free if you have an account with them. But it doesn't have to be a credit card, a normal account is enough.

The us is different between the us and Europe, everytime someone uses a credit card there are fees that go to the bank and the credit card processor.

In Europe these are legally capped, in the us they are not. So the 2% cash back on US cards is the cards and banks competing for market share by providing kickbacks from these fees to customers.

https://www.bitsaboutmoney.com/archive/how-credit-cards-make...

Ah I see, yes here it only costs money (I think it's 25 euro per year or so). And reduces maximum available mortgage so I try to avoid them.

> ten percent cash back on groceries

You must share which card is this, I will get one immediately. 10%?

Sorry, I just saw this. Not a fancy card, a discover it®

https://www.discover.com/credit-cards/cash-back/it-card.html

The ten percent is a promotion they were doing for getting the card; matching your cash back for a bit. 1% on everything, 5% on a couple of categories, and x2 for only a bit.

Credit cards provide kickbacks (ahem, cashback) to customers while virtually all products cost the same for debit or credit.

If you use debit, you might be leaving 2% of the deal on the table. (But you are helping the merchant, which could be a good reason)

The american credit system favours those who pay by credit card and pay it back on time. Something something credit scores.

Seems crazy for end users but I understand it from the banks' perspective

Aha I see, I'm in Spain.

My bank told me they definitely favour those who can live their lives without having to take loans at all. Any loans get subtracted from the maximum possible mortgage, this includes credit cards at their maximum authorised credit level(!). Also, we have to pay 20% of a house in hard cash here so anyone looking to buy one is saving substantial money. So you have a decent buffer. There's no point in taking out credit if you can supply your own.

> I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage

A mortgage is credit. And as far as FICO scores go, having high available credit would make it easier to get a loan, not harder.

Not having credit registered against my name made it more difficult to get a mortgage. No credit history, no credit.

>This is what keeps me from even considering an apple card, I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.

This is not, generally, a correct statement. Having a history of 1) paying off debt or 2) not using a credit line available to you actually makes it MUCH easier to get a mortgage.

Might be different in other countries but in the US the only way credit lines harm your chances of getting a mortgage is if you don't pay the bill in full every month or take out new lines of credit within a few months of taking out the mortgage.

I, personally, had more than 20 lines of credit open when I was approved for my mortgage at their lowest interest rate. My mortgage was/is actually lower than my available credit on my all my revolving accounts, combined.

Having established credit with a long term payment history is one of the best ways to build credit that sets a foundation for a mortgage in place.

> You could just use a debit card.

Debit cards are the worst of all options. Any fraud means the money is immediately gone from your account. Yes you can often get it back eventually, but eventually takes time.

> I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.

If you're planning on getting a mortgage I suggest studying up on this, because reality is the opposite of what you say. An important factor in your credit score is how much credit you have that you don't use. So what you want is lots of credit cards with very high limits to maximize your credit score.

It actually sounds like some customers thought any Apple purchase would be eligible if they paid with their Apple Card, but that is not how it works – you actually need to choose the interest-free monthly installment option when buying the device.

A case of potentially misleading advertising, but also customers being dumb. I personally found the whole process quite clear with regards to how the interest-free installment plans work.

For example, that is not even an option if you try to buy an Apple device from an Apple Store outside of the US, even if you already have the Apple Card. You just get the max 3% cashback.

> I personally found the whole process quite clear ...

Maybe there were earlier versions of the advertising/process that weren't as clear, and it was made clearer over time?

Possibly, but I got my Apple Card in early 2020, so fairly soon into the program.

> Apple glazing

What is "Apple glazing"?

apple glazing:apple::navel gazing:orange

Its a term common amongst sussy sigma zoomers paying Fanum Tax to Baby Gronk in Ohio (blud thinks he's edging a goofy ahh Kai Cenat, we ain't rizzing outta the goon cave with this one) that Grimace Shake Skibidi glaze was craaaazy bro frfr no cap on bussin

No idea, and there's nothing on Urban Dictionary https://www.urbandictionary.com/define.php?term=apple%20glaz...

I've used the service plenty of times now, and was never charged interest. I wonder what situations lead this to happen? I know one has to select the payment option when purchasing through Apple and not all items are eligible. Maybe people just assumed the payment plans would be automatically and didn't require selecting the option during checkout?

I believe if you fail to make the entire monthly payment by the end of the month you will be charged interest.

Also, you do need to explicitly specify you want to use the interest-free installment option when making the purchase. It's not automatic, even when buy an Apple product at an Apple Store.

Yes. I found this out after purchasing a new laptop for my wife. One call to the Apple store that I bought the device at fixed it though. It really was (mostly) painless.

Oh, now that's interesting news. I never would have thought of that! The one time I did it wrong was on a small enough item I was able to pay it quickly via savings.

I mean... isn't that how most interest-free cards work?

Yeah, I don't think I was ever charged interest on Apple products either, but I wasn't paying that close of attention. I'll have to go back and check to see if I can get a sweet class action payout.

I'm curious what the issue is, since most Apple Devices DO have interest free payments for 12 months

IIRC, the installment each month hits your card like any other charge. So maybe if you let it become part of your revolving balance at that point, you'll pay interest.

It's been a while since I bought an Apple device that way, but I do think that's how it showed up. I always pay my card off each month so I never got to find out if the installment would be subject to interest if I didn't immediately pay it.

> So maybe if you let it become part of your revolving balance at that point, you'll pay interest.

Another interpretation is that the credit card balance is charged interest but the monthly payments, which are paid using the card, do not have interest applied. Which sounds accurate and not necessarily misleading, though there's an argument to be made given they market the card so heavily. I think the confusion stems from the situation of making monthly payments with a credit line that also expects monthly payments.

> making monthly payments with a credit line that also expects monthly payments

I agree, that is very likely where the confusion comes from. It would probably be better if they kept the billing separate even when it's on the same statement.

I hate to jump directly to assuming nefarious greedy corporation, but obscuring the monthly installment by paying it with the credit card does strike me as a deliberate choice. I guess CFPB agrees.

Right, it shows up as an installment plan when you checkout and each month a charge is put on your card to pay on the next statement cycle.

But you have to click the payments option (and pay the billed amounts). If you put the full balance on your card, you can't ignore it for 12 months and then pay.

So it's only no interest as long as you make payments on time. I guess this is technically misleading advertising?

It might also be that it only applied during specific circumstances (buying directly from Apple) instead of as a blanket offer. I've bought a few devices through this deal and personally am a happy customer, so I hope this doesn't kill it.

No, it was a separate payment method called “Apple Card Monthly Installments.” If you just charged a purchase to your Apple Card, it was not an installment payment. That’s probably the confusion the regulators were complaining about.

I think this is it as well. I have a card, and do 0% payments. It’s not that bad, but I see how it could be confusing.

Isn't that every credit card? You pay your full balance on time it's essentially a delayed debit card because no interest is paid.

There's actually a term for this: charge card. Some American Express cards still work this way (i.e., you must always pay in full on time).

No. The financing Apple is offering is typically 12 months split into 12 separate payments. That is 0% financing and not a 'charge card' style. You're still getting 11 months of delayed payments, unlike a charge card where everything is due once a month from the previous month of the card.

Fair enough, I was just noting that "delayed debit card" has a proper name.

You don't have to pay the Apple card balance in full to pay no interest. You just have to make the payments on the agreed-upon schedule. You're effectively doing something like splitting a $1200 purchase into 12 $100 payments or whatever, rather than that plus interest. No credit card I'm aware of will do that for purchases in general, but presumably it's worth it for a card issued by the actual product vendor if it increases sales. They have enough cash on hand that it hurts them none to receive most of the payment in the future.

PayPal has an interest-free credit option, usually spread out over six months, as well. You don't always have to make a specific payment on the due date, but if you don't pay it off in six months then the whole amount of accrued interest is due.

Right, which is why the program is called "Monthly Installments" not "no interest for 12 months"

> Will they notify those charged interest?

Yes? Where do you think this money is going?

> Goldman will pay $64.8 million. Of that total, $19.8 million will go back to consumers.

They'll probably get 3 months of Apple Arcade free.

Or a $100 off coupon for spending over $500?

That's quite generous. I'd assume that of the $19.8 million going back to customers would see at least 60% used as legal fees before seeing distribution resulting in a similar payout to most class action suits

That's one advantage of this being a CFPB action and not the result of a class-action suit.

Isn't CFPB one of the agencies on the chopping block of Project2025?

Anything that helps consumers is on that chopping block, and CFPB is at the head of the list.

On a select items that they mark up 20%.