Apple Card's Cash Back Tiers Can Be Confusing - Here's How They Work

Of all the products and services Apple makes available to consumers, the Apple Card may be the one product U.S. customers entrenched in Apple's ecosystem should pay attention to. Apple Card is a U.S.-only credit card that's available without fees (annual, foreign transactions, and late fees), works directly with Apple Pay, and offers cash back (Daily Cash) of up to 3% depending on where you shop and how you pay for goods. All you need to do to get an Apple Card is be a U.S. citizen or resident and have access to an iPhone or iPad. You'll also have to go through a credit check when applying for your Apple Card. Before you decide to submit an Apple Card application, you should understand exactly what the cash back perks are, and whether it's worth adding the Apple Card to your digital and physical wallets. Keeping updated on cash back incentives may also improve your Apple Card experience.

Apple Card is available in Apple Wallet, and you can set up the credit card to work with Apple Pay purchases. That's actually a requirement to ensure you take advantage of the best cash back tiers (3% and 2% Daily Cash), which will give you a return that either matches or exceeds similar offers from competitors. Failure to use the Apple Card in Apple Pay, or using the physical card or typing the card number instead of relying on Apple Pay, will drop the cash back rate to 1%.

It's also important to note that there's no limit on the cash back you receive. Therefore, the more you spend, the more cash back you get. You don't have to wait for the money either, as the cash will be awarded every day.

Apple Card purchases made with Apple Pay at specific retailers will qualify for 3% Daily Cash back. According to Apple's benefits page, which you should bookmark and visit regularly to see the updated lists of merchants, purchases made at these companies will earn 3% Daily Cash: Apple, Ace, Booking.com, Chargepoint, Exxon, Hertz, Mobil, Nike, Uber, Uber Eats, and Walgreens. The list is subject to change, and merchants listed above are valid as of mid-March 2026. What's certain is that all purchases made at Apple with the Apple Card via Apple Pay will get you 3% in Daily Cash.

The Apple Card also offers a great perk to consumers who purchase eligible Apple products via Apple Card Monthly Installments. Select this payment option at checkout, and you'll get 0% APR and 3% Daily Cash back upfront.

You'll want to keep using Apple Pay when shopping online and in brick-and-mortar stores to get 2% Daily Cash. You should ensure that you pay with your iPhone or Apple Watch, both capable of holding Apple Pay card information, instead of taking out the physical Apple Card from your wallet or using your credit card's number online. If you pay in a retail store with the physical Apple Card, you'll only get 1% in Daily Cash back. The same percentage applies if you input the credit card details in an online form. A good rule of thumb is to switch to a different credit card that offers 2% cash back (or better) in places where Apple Pay isn't available. That way, you'll maximize your cash back, even if you have to split it between multiple credit cards.

The Apple Card offers additional benefits to holders when buying from Apple's partners. The benefits page mentioned above lists the various perks available to Apple Card owners, but they're tied to performing specific actions (like signing up or ordering products) through links Apple provides. For example, Apple Card purchases with Uber give you a six-month free trial of Uber One (a $60 value) as of this writing, as well as $0 fees on certain Uber Eats orders, and up to 10% off on other eligible Uber Eats orders. Making travel reservations with an Apple Card and Apple Pay via Apple's Booking.com link will help you secure 2% in Travel Credits for eligible stays and car rentals. Hertz offers free Emergency Roadside Service to Apple Card users, a free additional driver at pickup, 5% (or more) in savings for the Pay Later rates, and loss damage waiver vehicle protection for $16.95.

The Daily Cash can be used immediately via Apple Pay or Apple Cash or it can be moved to the Apple Savings account. Additionally, Apple Card users can share benefits with partners and children, and they'll also be eligible for unlimited Daily Cash back.

Finally, Apple also notes that Apple Card is accepted globally, anywhere Mastercard is accepted. The credit card is part of the Mastercard network, but it's issued by Goldman Sachs before the transition to Chase. This means users have access to Mastercard-related perks, like identity theft protection, protection against unauthorized purchases, and access to Mastercard travel services and Priceless Experiences.