Maybe you have heard about the new Apple Credit Card that is to be issued by the end of August this year. But, is it really a credit card. The short answer is yes, but not really at the same time. There will be a physical titanium card the will be issued for those that want a physical card. It is backed by Goldman Sachs and MasterCard. Presently the Apple Card itself will only be available in the United States, but could be coming to other countries soon. The Apple Card can be used anywhere in the world where MasterCard is accepted.

What makes Apple Card different is that there are no numbers printed on the card, just a chip with all the information. The biggest perk with the card is that it can be immediately paired with any of your Apple devises. This is another way Apple is trying to shake up the credit card industry by making everything you pay for or purchase go through your phone, tablet or computer.

Online Purchases will be a bit different with the Apple Card as well. Apple says the card will be able to generate a virtual number to use for Online purchases as well as a virtual confirmation code. This is be the solution for non-Apple store purchases. If you purchase items through the Apple Store, then you will not need to have a virtual number issued as the store has your account information already and will automatically charge the Apple Card.

One of the perks of the Apple Card is the Daily Cash reward. Apple will payout cash back bonuses on a daily basis instead of making users wait for their next statement.  Apple states cash back could be as high as 3% of purchases. Apple is also saying it’s interest rates are to be as low as 12.99% based on credit scores.

The Apple Card will not have any annual fees, international fee, late payments or fees for exceeding your credit limit. That said, Apple says that while there may not be a fee for late payments, your interest rate could go up resulting in paying more in the end.

It will be interesting to see how many actual physical cards will be issued this year and if they even get used for purchases outside of the Apple environment. Time will tell, but my bet is that Apple is on to something.