As if there weren’t enough reasons not to get an Apple Card, the latest batch of information might people think twice. This particular financial tool has some unwanted strings attached to it. Forced arbitration is never a good thing, as it immediately pushes customers in the wrong direction. Entering the financial market is not easy, not even for a tech giant like Apple.
Forced Apple Card Arbitration
For those unfamiliar with arbitration, an explanation is in order. This version, known as forced arbitration is present in most credit card terms and services. It means customers cannot file lawsuits against Apple or Goldman Sachs In the case of the apple Card, it is issued by Goldman Sachs on behalf of the technology giant. This force arbitration applies to both individual and class action lawsuits.
That doesn’t mean customers have no recourse if an issue arises. It does mean they will automatically adhere to binding arbitrations. This approach tends to favor companies over consumers, thus everyone knows who gets the short end of the stick. While customers can win an arbitration, their odds are severely limited. It is not the kind of mess one wants to get caught up in. Even so, it is not unique to the Apple Card, yet still worth taking into consideration.
Limited Benefits Aren’t Appealing
Other reasons to obtain this credit card are hard to find. While it integrates well with the Apple ecosystem, that in itself should not be considered to be a selling point. The actual benefits provided by this card over others are virtually non-existent, which is only to be expected. Apple isn’t entering this space to compete with banks or other card issuers. Instead, it aims to retain its current customers as long as possible.
The one advantage this card may have comes in the security department. It appears the Apple Card will use tokenized payments at point-of-sale terminals. This should expose less card information and result in safer transactions overall. While a positive point it is something other card issuers could easily mimic. For now, one has to wait and see if tokenized payments are the future for credit cards. Nothing has been proven to make it seem so.
Payment Restrictions Apply
About a week ago, it became clear Apple Card holders can’t buy everything. Some very strict limits and restrictions are put in place. While understandable, it further confirms users will not be in control of their finances. That situation applies to other credit cards as well. However, Apple is intent on taking this concept one step further. This only tilts the balance more toward the “don’t get it” side of things for a lot of consumers.