According to a person with knowledge of the talks, Apple and JPMorgan Chase are in talks for the bank to take over the tech giant's main credit card program from Goldman Sachs.

Based on the source, who asked to remain anonymous in order to discuss the specifics of the possible agreement, the talks are still in their early stages and important components, such as the price and whether JPMorgan would keep some aspects of the Apple Card, have not yet been settled. This source stated that in the upcoming months, the discussions may break down over these or other issues.

However, the action demonstrates how restricted Apple's options were when Goldman Sachs chose to veer away from its disastrous retail banking approach. Few card issuers in the United States have the size and inclination to take over the Apple Card business, which has cost Goldman money and drawn attention from regulators.

Due to increased losses on the cards, the bank is attempting to pay less than face value for the approximately $17 billion in loans made on the Apple Card, according to the person with knowledge of the situation. According to those close to Goldman, the Apple Card portfolio's higher-than-average default and delinquency rates were mostly caused by the fact that the customers were opening new accounts. Over time, the losses were expected to lessen.

The individual with knowledge of the situation stated that JPMorgan is also attempting to remove calendar-based billing, a crucial Apple Card feature that causes statements to be sent to all users at the beginning of each month instead of being sent out at different times. Although users find the function attractive, it causes a monthly deluge of calls for support staff at the same time.

(Sources: cnbc.com)