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Chase to become new issuer of Apple Card

81 points by tech234a

by roughly

10 subcomments

I used to have a Chase card, but decided I didn’t like dealing with them, so I closed the account.
And then they bought my bank, and I had a Chase account again. I gave them a chance and they were still awful, so I switched banks.
A couple years after that, they bought my bank, and I had a Chase account again. This isn’t a duplicate paragraph, it happened again. I gave them a chance again, and they were still awful, so I switched banks again (to a credit union, which, fingers crossed).
Now I guess I get to do business with Chase again, which is neat. I’m happy to be part of an economy where I can vote with my dollar like this.

by TazeTSchnitzel

3 subcomments

Goldman Sachs was new to consumer banking and it has long been apparent that Apple outplayed them with the Apple Card deal, causing them to lose a lot of money, and so they have been wanting to get out of it: https://appleinsider.com/articles/23/10/16/goldman-sachs-reg...

by MBCook

1 subcomments

The savings accounts are through GS as well. The transition page basically says “nothing to announce yet”, in a way that implies they may move somewhere as well.

by felineflock

1 subcomments

It may seem irrelevant for some, but I wonder: will they still offer the laser-etched titanium card instead of plastic?

by rizza

0 subcomment

Part of this is J.P. Morgan Chase paying for customer base. JPMC can't legally buy any banks anymore unless it's at an fdic auction for a failed bank. That means that the only way to bring in new customers is organic growth and taking over company/store cards from other banks. If JPMC sees an ROI on this, I expect that they will start aggressively going after established store card like the old navy/gap card or airline cards like the American Airlines card. They instantly get thousands of new customers to market their other services to, can offer cross promotion into their most valuable fee cards (sapphire reserve) for less cost, and get to expand their market information gathering operation that feeds into their investment banking and commercial banking lines of business to inform better understanding of the market.

by daft_pink

0 subcomment

It’s interesting when you look at the FAQ that everything will still be managed on the iPhone and nothing will go through Chase’s portal.

by catgirlinspace

0 subcomment

more discussion at https://news.ycombinator.com/item?id=46536848

by AdieuToLogic

0 subcomment

For the purposes of this post, American Express is not germane and thus omitted.
To fully understand this press release, we have to start with "the five circles" diagram which shows the simplest form of the entities involved in credit card processing:
```
          /-----------------\
          | Payment Network |
          \-----------------/
          /                \
  /--------\             /-----------\
  | Issuer |             | Processor |
  \--------/             \-----------/
      |                       |
  /-------------\        /----------\
  | Card Holder |        | Merchant |
  \-------------/        \----------/

  An example of a Payment Network is Visa.

  Issuer and Processor are banks allowed to connect to the
  Payment Network directly.

  Card Holder is a person who has a credit card account
  provided by an Issuer.

  Merchant is a company which performs credit card
  transactions via their Processor.
```
Now, companies which are neither a bank nor sponsored by a bank cannot directly interact with a Payment Network. Visa, MasterCard, Discover, none of them. Those companies must use a Processor (more on this later).
Which is why Chase (or bank equivalent) must be the "new issuer of Apple Card", since only an Issuer can do so (as illustrated above).
An important concept to revisit is that only banks or companies sponsored by banks can connect to a Payment Network. Companies sponsored by banks in order to enable them to directly communicate on a Payment Network are typically other banks and often have to give up an ownership stake to their sponsor.
Which means there must exist another element in the "five circles" diagram to explain offerings such as Apple Pay, PayPal, Stripe, Venmo, etc.:
```
          /-----------------\
          | Payment Network |
          \-----------------/
          /                \
  /--------\             /-----------\
  | Issuer |             | Processor |
  \--------/             \-----------/
      |                       |
      |                    /-----\
      |                    | ISO |
      |                    \-----/
      |                       |
  /-------------\        /----------\
  | Card Holder |        | Merchant |
  \-------------/        \----------/
```
Here, "ISO" are the payment services such as the aforementioned Apple Pay, PayPal, Stripe, Venmo, and friends. Ultimately, though, it is a bank which is the Processor which powers them. And in the Processor space, Chase is the 800lb gorilla.

by guessmyname

0 subcomment

[flagged]