Apple Card’s rapid growth and the new platform built by Goldman Sachs to service it created difficulties that attracted regulators who are focused on customer complaints from the past few years, CNBC reports citing “people with knowledge of the matter.”
Goldman struggled to handle a bigger-than-expected influx of disputed transactions, known in the industry as chargebacks, according to the people. Chargebacks happen when a customer seeks a refund for a product or service billed on their card for any number of reasons. The disputes, which put banks in the middle of disagreements between customers and merchants, have surged during the pandemic, according to payments consultants.
When an Apple Card user disputes a transaction, Goldman has to seek a resolution within regulatory-mandated timelines, and it sometimes failed at that, said the people, who requested anonymity to speak candidly about the situation…
Goldman got more disputes than it counted on, said one source. “You have these queues that you need to clear out within a certain amount of time. The business was getting so big, suddenly we had to create more automation to deal with it.”
Problems at Goldman’s card business burst into public view August 4, when the New York-based investment bank disclosed a Consumer Financial Protection Bureau probe over a range of billing and service issues. (Goldman made no mention of Apple in the filing, but most of its $11.84 billion in card loans to date are from the Apple Card; the bank launched a GM-branded card in January.)
MacDailyNews Take: Rapid growth is a good problem to have. These teething pains will be resolved, if they’re not already.
See also: Apple Card partner Goldman Sachs discloses probe into U.S. credit card division – August 4, 2022
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So regulators took a break from targeting political enemies to deal with actual consumer complaints? Shocking!
Worst credit card experience I’ve ever had. My complaint is with Goldman Sachs. Too bad Apple is the brand name on the card.
I had a dispute with Delta where they refused to refund my fare (that I paid for with my Apple Card) for a flight that that I paid extra for the ability to cancel. Goldman refunded me the disputed amount immediately and I forward them my documentation. About 2 months later Goldmann notified me that the dispute was resolved in my favor. I thought this process worked very well but it was slow. However it didn’t matter to me as I had the refund immediately.
The second example occurred last week while visiting Indianapolis. I paid for parking with my Apple card only to find a parking ticket on my car. I could see the charge immediately on my iPhone. I disputed it, sent screen shots of the payment and it was resolved in my favor 2 days later.
I REALLY like the fact that I can see charges immediately after I make them and can carry a record of them with so I can see quickly scan them to see if there is an issue. It has helped several times with online payments where I was unsure if my charge went through. I could get the answer in minutes.
I love the Apple card for this great, rapid charge record that I have with me just by carrying my iPhone.
I also think Goldmann came through for me in the Delta dispute.
2 instances certainly don’t prove a point or absolve Goldmann for not hiring enough staff to handle the dispute but it is not all bad from my standpoint. I love my Apple Card and Apple pay and use it as much as I can.