Cryptocurrencies cannot be purchased with the new Apple credit card based on information obtained from the technology company’s customer agreement guidelines recently published via partner bank Goldman Sachs’ website. If it is found that an individual has attempted to purchase digital currencies using the card, the card could be shut off indefinitely. According to the Apple card’s terms of service (ToS), Apple may decline transactions “for any reason” and the company will let the digital currency sales associates know why the transaction was declined at the time of rejection.
The Apple credit card, a first for the technology giant, will provide people with credit with an annual percentage rate (APR) between 13-24 percent, based on the applicant’s credit score. The card will be a MasterCard, but will not feature the traditional MasterCard 16-digit number or CVV code. The card is advertised as having no annual fees and no fees for transactions, and will be able to be used virtually.
The restriction on the purchase of cryptocurrencies is not limited to Apple’s credit card. By the end of 2017, Capital One, Chase, Bank of America, Lloyds Banking Group, Discover, Virgin Money, and TD Bank Canada had all banned digital currency purchases. Apparently, lots of people were using charge cards to purchase bitcoin and other digital assets during the last bull run.
Apple already had placed cryptocurrency restrictions on apps in the App Store. In February 2014, Apple removed all the bitcoin wallets from the App Store, but quietly allowed them to return a few months later. In 2018, Apple defined its cryptocurrency rules to say: “Wallet apps may facilitate virtual currency storage, provided they are offered by developers enrolled as an organization. Exchange apps may facilitate transactions or transmissions of cryptocurrency on an approved exchange, provided they are offered by the exchange itself.”