Comment by komocode
5 years ago
> the main issue is that Apple shut down his other Apple services because of non-payment. This presumably wouldn't happen if the charge was on a non-Apple card.
Not entirely true. If you owe money on the App Store because maybe your non-Apple card expired and you never updated it, Apple will shut down your account still.
> If you owe money on the App Store because maybe your non-Apple card expired and you never updated it, Apple will shut down your account still.
That's not what happened though. His credit card didn't expire. His credit card was the Apple Card.
With any other credit card, the merchant gets their money regardless of whether the card holder pays their credit card bill on time. You can buy a MacBook Pro with a Bank of America card, default on your credit card bill, and Apple still gets paid for the MacBook Pro. That's why the money is "credit". So defaulting on your Bank of America payments doesn't make your Apple ID shut down, there's no connection. If merchants didn't get their money from credit cards, then they would stop accepting credit cards. (Merchants are already pissed about the high fees charged by the cards.)
This situation with the Apple Card is weird because the merchant and the credit card company are more or less the same company. It turns out, this is very problematic.
> That's not what happened though. His credit card didn't expire
I didn't say that's what happened. I'm saying it's entirely possible Apple can shutdown your account for owing money even if you don't have an Apple Card.
I had an iTunes account back in 2012 linked to my Paypal. One time I accidentally unlinked my Paypal and Apple wouldn't let me access my iCloud email unless I typed my password. When I typed in my password, it would ask me to verify my CC/Paypal details. When I clicked cancel, the entire process would just happen again.
> Apple can shutdown your account for owing money
Owing money to whom is the question.
Apple can't shut down your account for owing money to Bank of America. Or for owing money to Goldman Sachs for a credit card not associated with Apple. In the case of Apple Card, who is the money owed to, Apple or Goldman Sachs? The latter is supposed to be the bank.
14 replies →
No. An auth can fail for regular cards as well, especially in a case like this when the auth was placed almost two months before the attempted charges. Most auth holds are only valid for a week or so.
In your BofA card, the credit card could decline the charge if it put the holder over their credit limit. For all we know, that might be why the Apple Card charge was declined.
>In your BofA card, the credit card could decline the charge if it put the holder over their credit limit.
Yes, but when charges are declined, merchants don't ship the products.
This is a weird case, because it was a retroactive charge not explicitly authorized by the card holder. That kind of thing rarely happens.
> For all we know, that might be why the Apple Card charge was declined.
What do you mean "For all we know"? The whole thing was explained in the article, we know exactly what happened.
6 replies →