eBay to Stop Accepting American Express Due to High Fees

eBay to stop accepting American Express due to high fees, offering alternatives like PayPal, Apple Pay, Klarna, and Affirm. Change effective August 17.

Jun 5, 2024 - 08:00
Jun 5, 2024 - 08:00
 121
eBay to Stop Accepting American Express Due to High Fees
eBay to Stop Accepting American Express Due to High Fees

eBay, the popular online marketplace, has announced that it will no longer accept American Express as a payment method, citing the high fees associated with the card. The change will take effect on August 17, and eBay assures customers that there are plenty of other payment options available.

This move is significant for American Express, which is known for having high-spending customers. However, this isn't the first time a major retailer has dropped AmEx over fee issues; Costco did something similar nearly ten years ago.

eBay spokesperson Scott Overland explained that the decision came after careful consideration. He noted that customers are now using a variety of new payment methods, which makes American Express less essential. eBay has been promoting alternatives like Apple Pay, PayPal, and buy now, pay later services such as Klarna and Affirm.

Overland emphasized that most eBay users are comfortable with using other payment options, ensuring that the shopping experience remains smooth and convenient.

In recent years, online merchants have become more vocal about the fees charged by payment processors. For instance, Amazon had a dispute with Visa in the UK two years ago over similar issues, but they eventually reached an agreement without interrupting service.

Like other payment processors, American Express charges merchants a fee for each transaction. The exact fees vary by industry and are often kept confidential.

In response to eBay's decision, American Express stated that their fees are comparable to those of other networks and highlighted that AmEx cardholders usually spend twice as much as users of other cards. Adam Isserlis, a spokesman for AmEx, expressed disappointment with eBay's decision, saying it contradicts eBay's goal of fostering competition at the checkout.

In summary, while eBay will no longer accept American Express due to high fees, it reassures customers that there are plenty of other payment options available, ensuring a seamless shopping experience.

Also Read: U.S. Job Openings Unexpectedly Fall, Signalling Labor Market Shift

iShook Opinion Curated by iShook Opinion and guided by Founder and CEO Beni E Rachmanov. Dive into valuable financial insights at ishookfinance.com for expert articles and latest news on finance.