Apple has reached an agreement with Goldman Sachs Group to launch a new credit card, but the user agreement bars customers from purchasing cryptocurrencies. This, according to a post on the Goldman Sach’s website on August 2.
In the post, the Apple Card Customer Agreement states “You may not use or permit your account to be used for … cash advances or cash equivalents.”
Apple is not the only company to bar these kinds of transactions. Both Citigroup and JP Morgan Chase disallow these kinds of transactions, explaining that it is the volatility of the market and prices that make cryptocurrencies too unstable to allow for the transactions. So do many British banks, including Lloyds Banking Group and Virgin Money.
In addition, the purchase of digital currencies was not the only restriction. Those who disable the hardware or software controls of their Apple devices, known as “jailbreaking” will also be denied access into their accounts. The Apple agreement reads:
If you make unauthorized modifications to your Eligible Device, such as by disabling hardware or software controls (for example, through a process sometimes referred to as “jailbreaking”), your Eligible Device may no longer be eligible to access or manage your account. You acknowledge that use of a modified Eligible Device in connection with your account is expressly prohibited, constitutes a violation of this Agreement, and could result in our denying or limiting your access to or closing your account as well as any other remedies available to us under this Agreement.
In this instance, “jailbreaking” would be related to a person using extraordinary means to try to circumvent the policy. Those who do this would be barred from their account and have their card canceled.
Apple CEO Tim Cook recently said that the Apple Card will be coming out sometime in August. This new card is the company’s attempt to branch out behind electronic devices. The Apple Pay has already been highly successful as a purchasing tool for consumers, and it is hoped that the new credit card will not only attract additional customers but also ensure that current users remain loyal.
It is also a shrewd move to fend off the competition. Line Pay announced in June that they would be releasing a new Visa card as part of their payment system. This put them ahead of Samsung, Apple, and Google by making this offer, and it looks like Apple has responded with their partnership with Goldman Sachs.
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