Apple Card's Rapid Growth, Outside Vendors Blamed for Mishaps Within Goldman's Credit-Card Business

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Goldman struggled to handle a bigger-than-expected influx of disputed transactions from Apple Card users, known in the industry as chargebacks.

Problems at Goldman's card business burst into public view August 4, when the New York-based investment bankThe regulator is looking into Goldman's customer dealings,"including with respect to the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements, and reporting to credit bureaus," the bank said.

"Goldman Sachs is holding me responsible for a $930 charge that was made at an Apple store with Apple Pay that I did not make," according to one Reddit Another part of the puzzle is that Goldman relied on three outside vendors to help service Apple Card customers. Known as business process organizations, or BPOs, the sector often struggles with high worker turnover, increasing the odds that a representative is new or not fully trained.

 

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