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