I learned an interesting lesson today. I learned that if I use my Mac Mini to purchase something online using the Apple Pay card, the card defaults to cash. In other words, it would draw the money from the balance of the accumulated cash I received from prior purchases made with the card.
How Apple Pay Works
For those not familiar with the Apple Pay card, let me back up a minute and explain how it works. Apple Pay card has three options:
Credit Card: Use the card as a regular credit card and earn anywhere from 1% to 3% daily cash back.
Cash Back Account: If you set up the Cash Back account, the daily cash earned from purchases gets deposited into the account. You can withdraw the funds at any time or use it to fund Apple Pay purchases.
Apple Savings Account: If you open an Apple savings account, you can choose to have the cash back funds deposited into the savings account. The beauty of this account is that it earns 4.15% APY. However, if you choose this option, the money is no longer deposited into the Cash Back account. It all gets transferred into savings. So, in my case, the cash back account balance is $0 since opening the savings account.
No Cash in Cash Account
So, you can see why I did not want to use the cash option for the subscription. Instead, I manually entered the Apple Pay credit card number to purchase the subscription.
However, later in the day, I learned that if I had used my iPad or iPhone, the default option for purchase would have been credit instead of cash. Sadly, I found that out after I had subscribed.
Apple Pay Cash Back Percentages
Because I purchased the subscription by manually typing in the credit card number, I reduced the daily cash back percentage to 1%. I would have gotten 2% cash back using the Apple Pay credit option (you get 3% when purchasing Apple products or products from some of their preferred vendors)
Maybe there’s a setting on my Mac that makes things work this way, or perhaps it’s an Apple quirk. Or, it might have something to do with the Mac Mini not having a Touch ID. I don’t know. But now that I’m aware of the behavior, I’ll do things differently.
Earn and Save Where I Can
I’ll probably cancel the subscription and re-subscribe via the iPad or iPhone. My husband laughs at me when I do such things, but every dollar saved is a dollar earned. Thanks to the Apple Pay card, I’ve not only saved quite a bit of money but also, by putting the money in the Apple savings account (currently through Goldman Sachs), I earn 4.15% on that savings. I think that’s a win-win.
Unfortunately, The Apple/Goldman Sachs relationship is coming to an end. I don’t know what’s going to happen next. However, until then, I’ll ride the Apple Pay/Goldman Sachs wave.