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Update: Apple is advising not to keep the card in a leather wallet. You can’t make this stuff up 😀
In short, the card offers no annual fee, 1% cash back when you use the card, 2% when you pay with Apple Pay, and 3% cash back on Apple Store/iTunes purchases and Uber.
There are other gimmicks. You get the cash back every day in your Apple wallet, but that doesn’t add much real value over waiting for your statement to close to get cash back on other cards. There are no late fees, but that’s something that you should never pay as you should have all of your credit cards set to autopay. Of course you’ll still pay interest, which is their real incentive in waiving late fees. Plus, as it’s a consumer card carrying a balance will hurt your credit score.
There is a hard pull to get the card, but there is no signup bonus.
There are much better options out there.
If you want cash back with no annual fee, you can get the Citi Double Cash card. That gives 2% cashback everywhere, not just where you use Apple Pay. That card also has no signup bonus, but it does offer 18 months of 0% interest on balance transfers.
The PayPal Cashback Mastercard® also offers 2% back everywhere and no annual fee. It also offers no foreign transaction fees and is a chip and PIN card so that you can use it at gas stations and kiosks abroad. It also comes with perks like price protection and extended warranty on purchases.
If you want a no annual fee business card, the American Express® Blue Business Cash Card offers 2% back everywhere, though that is capped at $50,000 in annual spending. Personally I prefer The Blue Business℠ Plus Credit Card from American Express. It’s basically the same card offering, but it earns points instead of cash back. It too has no annual fee and earns 2 points per dollar on up to $50,000 of spending per calendar year. As I value AMEX points at about 1.5 cents each, that makes it 50% more valuable than the cash card and means you’ll effectively get 3% back everywhere.
If you’re looking for cash back and a signup bonus to boot, the Capital One® Spark® Cash for Business offers $500 cash back for spending $4,500 in 3 months and offers 2% cash back everywhere. That card has a $95 annual fee, though it’s waived for the first year. There are no foreign transaction fees. You can also convert the cash back into miles if you have the Capital One® Spark® Miles for Business.
But what about 3% back on Uber?
You can do better than that too.
The Chase Ink Business Cash Card offers 5% cash back on $25K in annual telecom, internet, and office supply purchases. It also offers 12 months of 0% interest on purchases. Read more about this card here. You can buy Uber/UberEats gift cards from Staples and get 5 Chase points per dollar, which you can redeem for 5% cash back. Or you can transfer those points to a card (belonging to you or an authorized user) like Chase Sapphire Preferred or Chase Ink Business Preferred where 5 points will be worth 6.25% towards travel or the Chase Sapphire Reserve card where 5 points will be worth 7.5% towards travel. Those 3 cards also allow you to transfer points into airline miles and hotel points where 5 points can be worth substantially more than 7.5%!
Amazon typically offers substantial discounts on Apple products. You can also purchase Amazon gift cards from Staples, Office Max, or Office Depot and earn 5 Chase points per dollar spent when using your Chase Ink Business Cash Card.
The Chase Freedom Unlimited card has no annual fee and earns 3 Chase points per dollar spent everywhere on the first $20K spent within 12 months of opening the card. After that it earns 1.5 points per dollar. You can use that for cash back at 1 cent per point, or you can increase the cashback from 1.5-3 cents per dollar to 2.25-4.5 cents or more per dollar on travel by also having a Chase Sapphire Preferred, Chase Ink Business Preferred, or Chase Sapphire Reserve card.
If you want that card with a signup bonus, the Chase Ink Business Unlimited Card has no annual fee, offers $500 in the form of 50K points for spending $3,000 in 3 months, and 1.5 points per dollar everywhere. Once again, you can use that for cash back at 1 cent per point, or you can increase the cashback from 1.5 cents per dollar to 2.25 cents or more per dollar for travel by also having a Chase Sapphire Preferred, Chase Ink Business Preferred, or Chase Sapphire Reserve card.
Do you plan on getting the new Apple card?