Apple on Monday began sending emails to Apple Pay users, telling them that the release of iOS 12.2 and watchOS 5.2 marks the end of Apple’s support for sending money via Apple Pay Cash using a credit card as funding. Also Apple Pay Cash will now be called “Apple Cash.”
The company says that the change in policy “will ensure Apple Pay Cash customers never have to worry about cash advance fees that may be charged by issuing banks.”
Users had been allowed to link a credit card to fund person-to-person payments via the Messages app. The credit cards were linked to Apple Pay Cash in the Wallet app. Apple has stopped accepting credit cards as a funding source for Apple Pay Cash effective March 25, 2019. Oddly enough, that is the same day Apple announced its own Apple Card credit card.
Apple Pay users will now be allowed to fund money transfers using their Apple Pay Cash balance or a debit card.
Apple also used the email to inform users about Apple Pay Cash Instant Transfers, which allow users to quickly transfer money from their Apple Pay Cash balance to an eligible Visa debit card in the Wallet app.
Instant Transfers are processed almost immediately and a 1% fee (a minimum fee of $0.25 and a maximum fee of $10) is held from the amount of each transfer. Free ACH banks transfers are still available and take form one to three business days.