Apple’s latest credit card offering, which has been launched in partnership with Goldman Sachs, will reportedly not allow cryptocurrency purchases in any form. According to the customer agreement published on August 2, customers also cannot use their cards for cash advances and cash equivalents.
The agreement further outlines restrictions on ‘cash-like transactions’ such as purchases of traveler’s checks, money orders, and wire transfers.
No Cryptocurrency Allowed
The agreement notably also prevents customers from buying casino gaming chips, lottery tickets, and placing race track wagers under the stipulation that they fall under the definition of cash advances and cash equivalents. While these restrictions are fairly common on almost every single credit card, Apple and Goldman Sachs have swept digital currencies under the same definition.
Apple further requires users to sign up for the card through the iOS-only Wallet app, which is accessible only on certain ‘eligible devices’. The agreement states that if a user makes unauthorized modifications to their device, they could lose the ability to access and manage their credit accounts. In short, users with a jailbroken iPhone or iPad will likely have no access to Apple’s credit card program.
The tech giant unveiled its credit card on March 25, 2019, at an Apple Services event. The credit card will be made of titanium with only the user’s name printed on it. As a security feature, the card will not feature a printed number, CVV or expiration date. Instead, users can access that information from the Wallet app on their iOS devices.
Instead of a traditional points-based rewards program, Apple will provide cashback in the form of “Daily Cash.” Customers will earn 3 percent cashback on Apple products and 2 percent on any other purchases made with the card.
Not the First to Ban Cryptocurrency Payments
Apple and Goldman Sachs are notably not the only banks to restrict credit cards from being used for cryptocurrency purchases. In February 2018, JPMorgan Chase, Bank of America, and Citibank all banned the purchase of Bitcoin and other digital tokens, citing volatility and the credit risk involved in repayments as their primary concerns.
Last year, Lloyds Banking Group and Virgin Money both halted credit card customers from purchasing cryptocurrency. A Lloyds spokesperson said,
“The move is aimed at protecting customers from running up huge debts from buying virtual currencies on credit if their values were to plummet.”
Do you believe credit card companies are justified in restricting digital currency purchases? Let us know your thoughts in the comments below.