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Starting in mid-August, eBay customers will no longer be able to use American Express credit cards to pay for purchases on the online marketplace.
In a statement to FOX Business, the e-commerce company announced that it would stop accepting American Express as of August 17th due to “unacceptably high fees that American Express charges for processing credit card transactions.”
The measures, previously reported by Bloomberg and The Associated Press, apply to eBay transactions in all markets around the world where the online marketplace operates.
eBay headquarters in San Jose, California, August 9, 2021. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
“Payment processing costs should fall thanks to advances in technology, investments in fraud prevention and customer protections provided by retailers like eBay, but the lack of substantial competition has allowed credit card transaction fees to continue to rise unabated,” eBay said.
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American Express expressed disappointment with eBay’s decision, arguing in a statement that the online marketplace will “limit customers’ payment options and take away the service, security and benefits they value when paying with American Express.”
The American Express logo is seen in Los Angeles on April 25, 2016. (Reuters/Lucy Nicholson/Reuters Photo)
“Our research shows that in the U.S., the cost of accepting American Express is comparable to what eBay pays for similar cards on other networks,” the credit card company said in a statement. “eBay’s decision to remove American Express as a payment method for its customers is inconsistent with the company’s stated desire to promote competition at the point of sale.”
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Using American Express has been an option for eBay customers for some time now.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Ebay | eBay Inc. | 53.02 | -0.73 | -1.36% |
| AXP | American Express Co., Ltd. | 234.94 | -2.22 | -0.94% |
“Our internal research tells us that the vast majority of eBay customers want to take advantage of alternative payment options so they can continue to enjoy buying and selling on our marketplace,” eBay told FOX Business.
This illustration, taken on July 13, 2021, shows the eBay app on a smartphone. (Reuters/Dado Ruvic/Illustration/File Photo/Reuters)
Even after American Express is removed in August, the e-commerce company plans to continue accepting other credit cards, as well as other payment methods such as debit cards, Google Pay and PayPal.
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The e-commerce giant reported that its online marketplace had more than 2 billion active listings and over 132 million active buyers, with total merchandise volume of $18.6 billion in the first quarter.
As of Wednesday, eBay shares were up more than 21% since the beginning of the year.
