Subj : eBay is going to stop accepting American Express cards in payment
To   : All
From : TechnologyDaily
Date : Wed Jun 05 2024 16:45:04

eBay is going to stop accepting American Express cards in payment fees row

Date:
Wed, 05 Jun 2024 15:30:10 +0000

Description:
American Express users will no longer be able to pay with their cards on eBay 
after transaction fee row.

FULL STORY
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In a development that could affect ecommerce users across the world, eBay has 
announced it will no longer accept American Express (Amex) cards as a payment 
option due to unacceptably high fees. 

The decision, detailed in an email seen by Bloomberg thats set to go out to 
customers, will come into effect globally from August 17. 

Amexs fees have long been a contentious topic for merchants. Typically set 
higher than Visa and MasterCard rates, companies end up paying a higher 
percentage of each transaction for customers paying with Amex. eBay will no 
longer accept Amex payments 

The email, which eBay reportedly plans to send to customers this week, reads: 
After careful consideration, eBay has decided to no longer accept American 
Express globally effective August 17 due to unacceptably high fees charged by 
American Express for processing credit card transactions. 

Negotiations between eBay and American Express had not gone to plan, leading 
the online retailer to pull out of the Amex market. 

eBays move follows similar actions taken by its competitors Amazon notably 
threatened to stop accepting Visa cards on its global network citing high 
transaction fees, before eventually reaching a deal. 

Moreover, the move could be one designed to improve eBays profitability amid 
stiff competition from other online retailers. The company recently reported 
a weaker-than-expected profit outlook. 

 Bloomberg also noted that Amex stated its fees for eBay are comparable to 
other card providers, like Visa and Mastercard, but that it adds more value. 

eBay told TechRadar Pro in an email: 

"At a time when payment processing costs should be declining because of 
technological advancements, investments in fraud capabilities and customer 
protections by merchants like eBay, credit card transaction fees continue to 
rise unabated because of a lack of meaningful competition." 

Looking ahead, customers wanting to spend on their Amex cards can continue to 
do so through PayPal, which is supported as a payment method on eBay. 

eBay added: "Based on internal research, we know that the vast majority of 
eBay customers are willing to use alternative payment options to continue 
enjoying buying and selling on our marketplace." More from TechRadar Pro Make 
sure your online store is up to scratch with the best shopping cart software 
These are the best payment gateways for taking payments on your website Over 
a thousand jobs are going at eBay as ecommerce giant admits it grew too fast



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Link to news story:
https://www.techradar.com/pro/ebay-is-going-to-stop-accepting-american-express
-cards-in-payment-fees-row


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