Retailers Simply Don’t Want to Pay the Fees Associated With Apple Cards

Retailers do not want to pay for apple card fees. Pennygem’s Natasha Abellard has the story.

Transcript

00:00 (upbeat music)

00:02 The Apple Card is breaking through

00:05 their very first holiday season,

00:07 but many retailers aren't too excited.

00:09 The new credit card,

00:10 already swiping its way through stores from Apple,

00:13 but backed by Goldman Sachs Group,

00:15 is considered an elite card.

00:16 According to Bloomberg,

00:17 this means that the card comes with

00:19 much higher interchange fees per transaction,

00:21 and retailers are forced to pay those fees

00:23 as part of their cost for accepting credit cards as payments.

00:26 This means that merchants could lose profits

00:29 every time a customer pays using the Apple Card

00:31 or any other elite card instead of a traditional one.

00:34 The higher transaction fees help elite cards

00:37 provide better reward programs for customers.

00:40 Card networks say that premium card holders

00:42 have more buying power,

00:43 and that they will spend more money

00:45 justifying the higher transaction cost.

00:48 [MUSIC]