Here's how it works: for every Apple Card purchase you make using Apple Pay, you get 2% Daily Cash (no matter what you're purchasing). If, however, you use the physical Apple Card, you only get 1% Daily Cash back. Which means if you're dining out, and it's time to pay the check, you might opt instead to use a different credit card that has better restaurant rewards. Still, the difference between 1% and, say, 1.5% cash back is, most of the time, negligible enough for it not to make a real difference. Make a purchase at the Apple Store, on the App Store, and for Apple services, and you'll get 3% cash back. For each transaction you make, you can see the exact amount of money you're getting back in an itemized list. Once the cash is on your Cash card, you can do basically anything you want with it, like send a friend money over Messages, pay down your credit card balance, purchase anything using Apple Pay (if you have a balance on your Cash card, you can elect to pay using that rather than your Apple Card), or even deposit into a bank account.