Apple Credit Card Customer Agreement Prohibits Purchase of Crypto

On July 2nd, 2019, Goldman Sachs published the customer agreement for its upcoming credit card partnership with Apple. 

American technology corporation Apple is releasing the Apple Card in partnership with investment banking company Goldman Sachs as part of a larger business plan to increase revenue through services, rather than one-time purchases of assets.

According to information released by Apple, the Apple Card will serve as a credit card, and is planned to launch this summer. Apple Card will be offered through the Apple Wallet app, as well as supplemented by a Goldman Sachs consumer credit card made of titanium.

With Facebook’s recent move to embrace cryptocurrency through their own Libra coin, the join venture credit card seems regressive when juxtaposed with the social media giant’s optimistic endeavor. According to the recently released customer agreement, Apple and Goldman Sachs specifically prohibit the purchase of cryptocurrency using the card, under a clause defining (in order to later prohibit) cash advances using the card:

“Cash Advance and Cash Equivalents’ means any cash advance and other cash-like transaction, including purchases of cash equivalents such as travelers checks, foreign currency, or cryptocurrency; money orders; peer to peer transfers, wire transfers or similar cash-like transactions; lottery tickets, casino gaming chips (whether physical or digital), or race track wagers or similar betting transactions.”

The document later goes into detail on the consequence of using an Apple Card to make a cash advance: 

“If your Account is used for any Transaction not permitted by this Agreement, we will treat these Transactions as Purchase Transactions for purposes of applying interest, and you are responsible for these Transactions and any related interest or Daily Cash Adjustments.”

Despite other reasonable restrictions placed on the card, Apple’s user agreement is not without controversy. The classification of cryptocurrencies as “cash equivalents” certainly cements Apple’s stance in the asset vs. currency debate, leaving room for accordant support from the company in the future.