3 ms·

How exactly is Goldman Sachs losing $1-2B here compared to regular consumer banks, which don’t? The article mentions having to deal with all accounts having mon

How exactly is Goldman Sachs losing $1-2B here compared to regular consumer banks, which don’t? The article mentions having to deal with all accounts having monthly close on the same day, but it can’t be the whole reason.

2Gkashmiri 3y ago
i guess they have minions who manually have to sign off on each of the accounts every month because policy
YeBanKo 3y ago
To me seems like this whining is a part of negotiating tactics by GS.
bjord 3y ago
See https://news.ycombinator.com/item?id=37901647 https://news.ycombinator.com/item?id=37901647 "This is completely unsurprising. The way banks make money on consumer credit cards is primarily through interest and fees, which primarily take advantage of people who are not financially literate. They also take intentional dark UX choices to ensure that collecting on fees or interest is much more likely. Meanwhile, Apple Card had such high eligibility requirements (I got denied the first time I replied and I'm a HENRY tech worker with an 812 credit score) that the vast majority of the customers in the program are exactly the type of people who are high earning and responsible enough with money to pay the card off each month to avoid interest and fees. Apple made it a step further due to the integration into Wallet that allows you to easily track spending and ensure you can trigger payments in a way to avoid interest. As a consumer, I love Apple Card, because it makes it simple to get base cash back and ensure I never get charged interest. Clearly it's a bad deal for Goldman Sachs, but I don't have any tears to shed for them."
elteto 3y ago
Can’t really believe the $1-2B figure. I would guess this figure is inflated and the real problem is that GS is unhappy with something in the current arrangement and they are publicly signaling so to Apple.

3 ms·

How exactly is Goldman Sachs losing $1-2B here compared to regular consumer banks, which don’t? The article mentions having to deal with all accounts having mon

by mikpanko 3y ago

2Gkashmiri 3y ago
i guess they have minions who manually have to sign off on each of the accounts every month because policy
YeBanKo 3y ago
To me seems like this whining is a part of negotiating tactics by GS.
bjord 3y ago
See https://news.ycombinator.com/item?id=37901647 https://news.ycombinator.com/item?id=37901647 "This is completely unsurprising. The way banks make money on consumer credit cards is primarily through interest and fees, which primarily take advantage of people who are not financially literate. They also take intentional dark UX choices to ensure that collecting on fees or interest is much more likely. Meanwhile, Apple Card had such high eligibility requirements (I got denied the first time I replied and I'm a HENRY tech worker with an 812 credit score) that the vast majority of the customers in the program are exactly the type of people who are high earning and responsible enough with money to pay the card off each month to avoid interest and fees. Apple made it a step further due to the integration into Wallet that allows you to easily track spending and ensure you can trigger payments in a way to avoid interest. As a consumer, I love Apple Card, because it makes it simple to get base cash back and ensure I never get charged interest. Clearly it's a bad deal for Goldman Sachs, but I don't have any tears to shed for them."
elteto 3y ago
Can’t really believe the $1-2B figure. I would guess this figure is inflated and the real problem is that GS is unhappy with something in the current arrangement and they are publicly signaling so to Apple.