In a development that could impact e-commerce users around the world, eBay announced that 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 which is intended for customers, will go into effect globally from August 17.
Amex fees have long been a contentious issue for merchants. Rates are typically higher than Visa and MasterCard, and businesses end up paying a higher percentage of each transaction to customers who pay with Amex.
eBay will no longer accept Amex payments
The email, which eBay reportedly plans to send to customers this week, says: “After careful consideration, eBay has decided to no longer accept American Express globally effective August 17 due to the unacceptably high fees charged by American Express for processing credit card transactions.
Negotiations between eBay and American Express had not gone as planned, leading the online retailer to withdraw from the Amex marketplace.
eBay's move follows similar actions taken by its competitors: Amazon, in particular, threatened to stop accepting Visa cards on its global network citing high transaction fees, before eventually reaching an agreement.
Additionally, the move could be designed to improve eBay's profitability amid stiff competition from other online retailers. The company recently reported a weaker-than-expected earnings outlook.
Bloomberg He also noted that Amex said its fees for eBay are comparable to other card providers, such as Visa and Mastercard, but that it adds more value.
eBay said TechRadar Pro in an email:
“At a time when payment processing costs should be declining due to technological advances, investments in fraud capabilities and customer protection by merchants like eBay, credit card transaction fees continue to rise unabated. cease due to lack of meaningful competition.”
Going forward, customers who want to spend with their Amex cards will continue to be able 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.”
