The Apple Card promises the opportunity to earn cash back on everything you buy, including Apple purchases — without any fees.
However, the cash back you earn with this card works a little differently than it does with a traditional rewards credit card. With the Apple Card, you earn Daily Cash rewards, which accrue each day and can be redeemed alongside any other funds you have in your Apple Cash account.
Before you sign up for the Apple Card, it helps to understand how the rewards program works and the exact redemption options you may be eligible for to decide for yourself whether it’s worth it or not.
Apple Card program basics
The Apple Card* comes with no annual fee, no foreign transaction fees and no late fees, as well as a generous rewards program that gives you up to 3 percent back for each purchase you make when you meet certain requirements. This includes:
3 percent back on Apple purchases and purchases made with select merchants when you use your Apple Card and pay with Apple Pay; current merchants include Ace Hardware, Exxon, Nike, T-Mobile, Uber, Uber Eats, Duane Reade, Mobil, Panera Bread and Walgreens
2 percent back on all purchases made using your Apple Card with Apple Pay
1 percent back on everything else
The Apple Card, issued by Goldman Sachs, was clearly built to work in conjunction with Apple Pay. However, in instances where you’re shopping with an app or on a website that doesn’t accept Apple Pay yet, you’ll get a virtual card number that operates in the Wallet app. This card is also a Mastercard, so it’s accepted anywhere Mastercard is accepted around the world.
In addition to offering a lower variable interest rate range of 15.24 percent to 26.24 percent, the Apple Card also helps you pay less in interest by estimating how much you would pay on a specific purchase, then suggesting a payment you can make to pay down your balance faster. But like any card, you can avoid interest altogether by paying your balance down in full each month.
That said, the Apple Card is more limited than other cards since you can’t transfer balances to or from it, or use it for a cash advance.
How does the Apple Card’s cash back work?
When you rack up cash back with the Apple Card, you’ll be awarded in the form of Daily Cash. For the most part, the term “Daily Cash” is only used to describe the amount of cash back you’ve accrued in your rewards account. Unlike other cash back credit cards that award you points or cash back once per month when your credit card statement closes, Daily Cash accrues every day as you earn it.
As Daily Cash accrues, it is automatically added to your Apple Cash account. Apple Cash is a component of Apple Pay that lets you maintain a cash balance you can use toward purchases or sending money to friends, among other options. For instance, when you shop with Apple Pay and have a balance in your Apple Cash account, you can use it to pay for purchases instead of using another form of payment tied to your account.
What can you redeem Apple Card’s cash back for?
You can redeem your Daily Cash rewards for:
Buying items via Apple Pay
Sending money to friends
Transferring money to your bank account
Paying down your credit card balance
When you use your cash back to make purchases through Apple Pay, the options for redeeming your cash back rewards are nearly endless since you can use Apple Pay anywhere it’s accepted — in grocery stores, boutiques, restaurants and more. You can also use Apple Pay to make purchases in iTunes, Apple Music, the App Store, iCloud, Apple News+ and more.
Pros and cons of Apple Card’s Cash Back program
While the Apple Card offers some generous benefits and rewards, it’s definitely not for everyone. In fact, you actually have to be an Apple customer to get the most out of this cash back credit card. According to Apple, to access and use all of Apple Card’s features, you’ll need to add your Apple Card “to an eligible iPhone or iPad that you own with the latest version of iOS or iPadOS.”
To help decide if the Apple Card’s rewards program is right for you, consider these additional pros and cons:
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Is Apple Card’s cash back program worth it?
If you’re a devoted Apple customer who makes a lot of purchases with the brand and already uses Apple Pay, then the Apple Card and its rewards program may fit well with how you already spend money. But if you don’t have an Apple device and also don’t plan on getting one, this card and its rewards program will be of little value to you.
At the end of the day, the Apple Card is best for consumers who already operate in the Apple universe and who mostly want to redeem their rewards toward purchases or for statement credits.
The bottom line
While the Apple Card can be ideal for Apple enthusiasts, don’t forget to compare it with other options out there. There are still plenty of top cash back credit cards that let you earn a similar rate of rewards in popular bonus categories. Plus, these cards’ rewards structures won’t be tied to your mobile device, and you may have more options for cashing in rewards.
As always, you should compare credit card offers you’re considering in terms of the rewards rates, benefits, welcome offers and fees before you sign up for a card.
The information about theApple Card has been collected independently byBankrate.com. The card details have not been reviewed or approved by the card issuer.
