According to a recent report, holders of the soon-to-launch Apple Card will not be allowed to use it to buy digital currencies. The report states that such purchases are expressly forbidden by the card's customer agreement.
The high-tech giant is scheduled to release the card this month in cooperation with Goldman Sachs, which is one of the largest financial services firms in the world. Apple will be offering the card as part of a larger attempt by the company to increase its revenue through the use of services.
The customer agreement, which Goldman Sachs publicly published last month, treats the purchase of digital currencies as being similar to cash-like transactions as well as cash advances. Specifically, Apple Card holders will be unable to make the following purchases with the card:
Travelers Checks Foreign Currency Cryptocurrency Money Orders Peer-to-Peer Transfers Wire Transfers and Other Cash-Like Transactions Lottery Tickets Physical or Digital Casino Gaming Chips Race Track Wagers or Other Gambling Transactions
Apple will offer the card through its line of iPhone devices, within the context of its digital wallet app. Goldman Sachs will further offer a physical titanium card to consumers as well.
In related news, a judge overseeing a class-action lawsuit filed by holders of credit cards issued by Chase has allowed the case to proceed. The suit relates to the plaintiffs' desire to use their credit cards to purchase digital currency. Legal experts believe that the success or failure of the suit will ultimately depend on whether courts determine that the purchase of digital currencies constitute a cash advance or a cash-like transaction.
The judge in the case recently ruled that the plaintiffs' view that digital currency purchases are not cash advances or cash-like transactions is sufficiently plausible enough to allow the case to proceed. Because of this, the judge dismissed various motions filed by Chase's legal representatives to dismiss the case.