Every time I swipe that baby, it gives me a little joy to know that I am taking money out of Goldman's pocket.  They are eating the transaction cost and paying me cash back, and I am never going to pay them a dime in interest. It's delicious. 
this post was submitted on 20 Jul 2023
44 points (100.0% liked)
Apple
17491 readers
97 users here now
Welcome
to the largest Apple community on Lemmy. This is the place where we talk about everything Apple, from iOS to the exciting upcoming Apple Vision Pro. Feel free to join the discussion!
Rules:
- No NSFW Content
- No Hate Speech or Personal Attacks
- No Ads / Spamming
Self promotion is only allowed in the pinned monthly thread
Communities of Interest:
Apple Hardware
Apple TV
Apple Watch
iPad
iPhone
Mac
Vintage Apple
Apple Software
iOS
iPadOS
macOS
tvOS
watchOS
Shortcuts
Xcode
Community banner courtesy of u/Antsomnia.
founded 1 year ago
MODERATORS
wait what?
the primary cause is loan-loss provisions which are when a bank has to compensate for greater than expected unpaid credit card balances and loans.
Sooo Apple Card users used more credit on their credit cards than expected?
I thought that was good for banks? Don't you have to pay interest on that? I'm not entirely sure, because I'm not used to the (in my view primarily american) credit card system of "paying off credit cards", which I know mostly from TV.
The only way this makes sense seems to be if you don't pay any interest if you return the money in a certain timeframe. That would mean the Bank effectively has to eat the interest-cost, and could have more cost.
$659 million in quarterly revenue
...
Goldman had $544 million in credit losses and $987 million for operating expenses
Credit loss: a loss that a business or financial organization records, which is caused by customers not paying money they owe
So, the division had only 660 Million Revenue, lost 544 million to people not paying their debt (is that money gone, or are those people still owing that money to Goldman?) and paid nearly a billion to operate this for a single quarter?
dafuq?
Is Apple Card in danger if Goldman does their best to pull the plug?
Goldman is in talks with American Express for the sale of their credit card division. If that happens, American Express will likely become the network for Apple Card. It kind of makes sense because Costco leaving American Express was a big blow to them. But, it will be less than ideal because not everyone accepts American Express.
Less than a billion. Chump change for them. Don't think that'll cause any hardship
just because they propably could afford to lose the money, doesn't mean that they will.
Money gone. This is pretty much they insurance for bad debt and they have a lot of it.
Apple Card isn't even a thing in the UK, so I keep forgetting it exists.