Goldman Sachs screws up Apple Card...

Blames pandemic, Apple's success for its failures.

From Hugh Son's "Apple Card’s rapid growth, outside vendors blamed for mishaps within Goldman’s credit-card business" posted Tuesday on CNBC:

When it was unveiled in 2019, Apple touted its new credit card as a gamechanger with unheard-of levels of simplicity and transparency.

Behind the scenes, however, the card’s rapid growth and the new platform built by Goldman Sachs to service it created difficulties, resulting in failures more reminiscent of a traditional issuer than a customer-first disruptor, according to people with knowledge of the matter.

Goldman struggled to handle a bigger-than-expected influx of disputed transactions, known in the industry as chargebacks, according to the people. Chargebacks happen when a customer seeks a refund for a product or service billed on their card for any number of reasons. The disputes, which put banks in the middle of disagreements between customers and merchants, have surged during the pandemic, according to payments consultants.

Goldman got more disputes than it counted on, said one source. “You have these queues that you need to clear out within a certain amount of time. The business was getting so big, suddenly we had to create more automation to deal with it.”

My take: It took only a couple mishaps with the titanium card for me to stop using it.

15 Comments

  1. Bruce Oran said:
    I now only use the Apple card for Apple-related transactions to get the 3%. I have had situations where I challenged a transaction and they keep trying to put it through and each time I am sent a new Titanium card despite never having lost it in the first place!

    1
    August 9, 2022
    • Jim Fournier said:
      Bruce,
      Who was the issuer?

      0
      August 9, 2022
  2. David Emery said:
    Guess I’m glad I didn’t sign up for an Apple credit card given the experiences recorded here.

    0
    August 9, 2022
  3. Fred Stein said:
    I encountered one glitch. When refunds are issued, they first show up as new charges. Later it reverts to the proper state of refund. Of course I screamed for help, ASAP.

    That was systemic, a bug. No doubt the support team was overwhelmed with calls. I feel sorry for the merchants who did the right thing by refunding, and still had to deal with irate customers who thought they had been ripped off.

    0
    August 9, 2022
    • Steven Philips said:
      Fred: I didn’t have the same problem but I did need to contact customer service with a weird payment problem right after I got the card. I have never had better customer service! (Except one time when Honda Service canceled the total service bill of almost $200 because they kept me waiting 2 hours after it was finished. By accident.)

      0
      August 9, 2022
  4. Jonny T said:
    No wonder it hasn’t rolled out anywhere else in the world. Next step, Apple Bank. Zero outsourcing!!!

    5
    August 9, 2022
  5. John Konopka said:
    I’ve had nothing but good experiences with my Apple Card. My number was compromised a few times. Each time this happened I got it resolved very quickly. When I called the techs were knowledgeable and helpful.

    On the other hand, except for when bad people did this to me, I’ve never asked for refunds or challenged a charge so maybe I didn’t stress them very much.

    I like that when you have an issue you can simply start a chat from the wallet. Very convenient.

    1
    August 9, 2022
  6. Michael Goldfeder said:
    Reminiscent of walking into a bank with 25 teller windows and 2 tellers actually working. Then the bank concierge walks up to the next person standing in a 50 person line and asks them what they need? When they walk up to me I respond: “I need you to walk behind the counter and start working a teller window!” Perhaps if Goldman Sachs had put Rod Hall in a teller booth this backlog might have become worse. But at least nobody would have to read his drivel as he would be too busy doing something else for his investment firm.

    Apple will be bringing their Apple Card In house in another year or two IMO.

    2
    August 9, 2022
    • Gregg Thurman said:
      Apple will be bringing their Apple Card In house in another year or two IMO.

      I continue to believe Apple should acquire MasterCard. Maybe when it’s partnership with GS has expired.

      0
      August 9, 2022
      • Steven Philips said:
        Oooh! I don’t think that would go over very well! 🙂

        1
        August 9, 2022
  7. Ken Cheng said:
    No issues, whatsoever, and I use my Apple Card way more than I should!

    2
    August 9, 2022
  8. Jerry Doyle said:
    Something tells me that many of the credit issues have to do with purchases through on-line shopping where merchandise later received was rejected for some reason and returned.

    I never have had a credit problem using Apple Pay. My failure to have a problem could be that all my Apple Card purchases are direct purchases with me standing in line and receiving the service or product purchase at time of transaction.

    I mainly use the card for Apple purchases and with vendors paying the 3% cash return.

    I have no understanding why anyone uses the titanium card for the 1% payback. Obviously Apple wants all transactions digitally. Who uses the titanium card, and why?

    0
    August 10, 2022
    • Chris De Armond said:
      @Jerry

      I use the titanium card exclusively because I love that the merchant gets no information on me at all. Thank you token handshakes.

      Also, my customer service interactions have been professional, very responsive, rapid, and customer friendly.

      0
      August 10, 2022
    • Bob Goldstein said:
      I use my amazon card for Amazon and Whole Foods, my Costco card for Costco and the Apple Card for everything else. I guess I just use it out of habit, its the first card that pops up on my watch when I pay. What cards do you recommend?

      0
      August 10, 2022

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