Visa vs. Mastercard: The Apple Card Power Shift and What It Means for Merchants

By Robert Skinner | WBN News | April 22, 2025

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In the latest twist from the payments world, Visa has reportedly offered Apple around $100 million for the chance to replace Mastercard as the official payment network for the Apple Card. American Express is also in the running — potentially as both issuer and network.

Goldman Sachs, the original bank partner for the Apple Card, is stepping away. That leaves room for a new pairing between Apple and one of the big networks — and what seems like a routine reshuffling could have significant downstream effects on merchants.

Why this matters to small businesses:
At the surface level, who backs the Apple Card might seem irrelevant to day-to-day retail. But payment networks dictate key elements of how transactions are processed, including:

Interchange rates (the fees paid by merchants)
Chargeback and refund rules
Authorization policies
Cardholder perks that influence purchasing behavior

With the Apple Card rapidly growing and favored by younger, high-spend consumers, the rules set by its new network will affect how you get paid — and how much it costs you.

1. Visa’s Style vs. Mastercard’s Approach

Visa typically positions itself with broader acceptance, slightly lower interchange rates on average, and more lenient approval policies. Mastercard often leans into exclusive cardholder benefits and stricter fraud controls.

If Visa wins the bid, small businesses could see:

Lower effective swipe rates on Apple Card transactions
Simplified dispute processes
More consistent POS acceptance

But it could also bring less protection in high-fraud categories.

2. Amex in the Mix: A Wild Card

If American Express wins, it could mean higher fees — Amex has historically charged more per transaction. However, Apple may demand friendlier terms given its user base and influence.

3. Watch for Incentives

Whoever wins may incentivize both consumers and merchants to use and accept the Apple Card more widely. This could come in the form of:

Promotional processing rates
Cash back rewards at small businesses
New integration tools for merchants using Apple devices

Bottom line:

The outcome of this high-stakes card network shuffle may set the tone for future innovations — or added costs. For small business owners, it’s a reminder to stay tuned to who’s behind the plastic, and not just who’s swiping it.

WBN News - South Delta Edition

Robert Skinner - Publisher

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