eBay, a global e-commerce giant has long been a go to platform for buying and selling a wide range of products across various industries. Over the years, the e-commerce company has evolved in different aspects of its growth owing to changes in the online marketplace and consumer behavior. However, one recent change has sparked heated discussions among users: its decision to discontinue payments via American express. This recent development raises various questions in the minds of eBay users with regards to the reason behind the change.
What is the reason why ebay no longer accepts payment with Amex?
“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,” said ebay’s spokesman, Scott Overland in a press release.
Starting from August 17, users of the e-commerce platform will no longer be able to use American express to pay for any kind purchase as the charges by American express is high compared to other payment networks.
American express high fees can significantly affect the company’s profit margins and given the competitive nature of the e-commerce industry, this will not be good in the long term.
“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,” ebay stated. “As consumers and small businesses are worried about inflation and rising costs, there is a need for more robust regulations to drive greater competition to credit card networks and help reduce transaction processing costs for merchants and their customers.”
Basically, reducing these fees will save money for both the e-commerce company and customers.
Notaly, this is not the first time a major merchant has severed ties with American express. Back in 2016, Costco, another major merchant, cut ties with the credit card company following a breakdown in negotiation between both parties.
Responding to this new development, American express stated that the e-commerce company makes up only about 0.2% of the company’s network volume.
In a statement to Newsweek, Amex said: “The number of American Express accepting merchants has more than tripled since 2017. eBay canceling acceptance will not change those numbers and, in the US, we continue to maintain 99% parity coverage.”
Apparently, American express is still one of the most used forms of payment in the United states.
However, ebay users will not be able to make payment for product purchases again via the American express unless both companies reach an agreement concerning associated fees.
“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,” Overland said.
What are the payment methods used in ebay
Here are other payment methods you can use for your future purchases:
The following payment method are still available:
- PayPal
- PayPal Credit
- Credit card or debit card
- Apple Pay
- Google Pay
- Venmo
- Spendable funds
- Payment upon pickup
- Wire transfer
- eBay gift card or eBay voucher or eBay Bucks
