When Apple announced its upcoming credit card in partnership with Goldman Sachs, the core feature of Apple Card is no charge. In addition, Apple offers a cash refund of 1% for physical card transactions up to 3% to purchase Apple products. This has made some wonder why the company will win from Apple Card.
Of course, the card still charges interest on outstanding amounts that are not paid out every month, but this is not the only source of income, according to experts in the payment industry …
Business Insider with a number of them who say that while Apple talks about low interest rates, the range it has given is not unusual.
The fine font at the bottom of the Apple Card message indicates that it will charge a variable interest rate between 13.24% and 24.24% – a wide but not unusual range.
Even if Apple succeeds in imposing lower prices than others
"Interest rates on credit cards are very high, so there is room for making money even at lower interest rates," said Jim Miller, vice president of bank and credit cards at JD Power, said at Business Insider
The peak Percent also suggests that Apple is targeting those with low credit ratings, who are probably the people who have the balance on the map.  Exchange Fees
Apple can not charge users fees, but like any other card provider, it will charge merchants. Retailers typically pay about 2% to card companies for payment processing in fees known as exchange or inaccurate charges
Four Key Savings
Experts say Apple will also keep more than the interest paid by customers thanks to four key savings.
First, card companies typically spend a significant amount of money to acquire customers. Banks have to pay marketing and advertising costs and usually also have to offer introductory bonuses to attract new customers – whether they are 0% interest on balance transfers or bonus points. Apple has a ready-made market for existing Apple Pay users, brand fans who want to register, and card experts suspect it does not plan to offer any sign-up bonus.
Secondly, Apple's card will likely experience significantly lower levels of fraud due to the absence of a physical card card number and an incentive for customers to use Apple Pay whenever possible. This means that many transactions will be verified by Face ID or Touch ID.
Third, Apple will have lower maintenance costs thanks to things like the card – which should reduce the number of customers who do not meet the fees and
And finally, although Apple will pay customers additional 1% to buy the company's own products, this is probably less than the exchange fees currently payable to other card issuers.
So earning money from Apple's Card will be easier for Apple than other card companies, with more than that interest revenue being retained as a profit.