Online marketplace giant eBay announced it will no longer accept American Express payments, citing the credit card company’s “unacceptably high fees.”
Starting August 17, millions of customers will be unable to use their Amex cards on the platform. eBay highlighted that shoppers have alternative payment options available.
This decision aligns with eBay’s growing emphasis on offering buy now, pay later options through services like Apple Pay, PayPal, Klarna, and Affirm.
eBay spokesman Scott Overland stated, “After careful consideration, eBay has decided to no longer accept American Express globally effective August 17 due to the unacceptably high fees American Express charges for processing credit card transactions.”
He also noted that customers are increasingly aware of new, competitive ways to pay for items.
As of the end of last year, there were 141.2 million Amex cards in circulation worldwide.
American Express has faced opposition to its business practices before, with warehouse chain Costco ending their partnership nearly a decade ago.
American Express expressed its disappointment regarding eBay’s decision to stop accepting Amex payments starting August 17.
A spokesman commented: “This decision limits customers’ payment options and removes the service, security, and rewards that American Express offers.
Our research indicates that in the US, the cost of accepting American Express is comparable to what eBay pays for similar cards on other networks.
We believe eBay’s decision to eliminate American Express as a payment option contradicts its stated goal of increasing competition at the point of sale.
However, eBay accounts for less than 0.2% of our total network volume.
American Express Card Members can still use their cards with millions of merchants globally.”
