eBay to Stop Accepting AmEx Payments over "unacceptably high fees"
Upcoming Change in Payment Options for eBay Sellers and Buyers from August 17, 2024
By ChannelMAX Staff Writer
2024-July#01
As an eBay seller, you must be aware of a significant change coming to the platform. In an official statement, eBay has announced that it will no longer accept American Express (Amex) payments globally, effective August 17, 2024. This change will impact both sellers and buyers on the platform, necessitating a shift to alternative payment methods.
The Reasoning Behind the Decision
eBay cites "unacceptably high fees" charged by Amex for processing credit card transactions as the primary reason for this decision.
The company states:
"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. 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."
Impact on Sellers and Buyers
eBay assures its users that the transition will be smooth. The company is notifying customers about this upcoming change to prepare them for the shift to alternative payment options. eBay's research suggests that the majority of its customers are willing to use other payment methods to continue their activities on the platform.
Alternative Payment Options
Sellers should be aware that eBay offers various alternative payment methods. These include:
- PayPal
- Apple Pay
- "Buy now, pay later" services like Klarna and Affirm
These options are expected to fill the gap left by the discontinuation of AmEx payments.
American Express's Response
In response to eBay's decision, American Express has issued a statement as reported by AP:
"We find eBay's decision to drop American Express as a payment choice for consumers to be inconsistent with their stated desire to increase competition at the point of sale," said Adam Isserlis, a spokesman for AmEx. The company also claims that eBay's cost to accept AmEx cards is "comparable to what eBay pays for similar cards on other networks" and that AmEx cardmembers typically spend double at eBay compared to other networks.
eBay's Stance on Competition and Costs
eBay emphasizes the need for more robust regulations to drive greater competition among credit card networks and help reduce transaction processing costs. The company states:
"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."
This change marks a significant shift in eBay's payment landscape. While it may require some adjustment, eBay remains committed to providing a variety of secure and popular payment options.
The company reaffirms its dedication to its global customer base, stating:
"With 2 billion listings and 132 million active buyers worldwide, eBay connects buyers and sellers in 190 markets around the world, fueling small business growth and creating economic opportunity for communities. Our customers have a deep affinity for eBay due to our unique inventory, attractive prices, and the meaningful role eBay plays in powering recommerce to contribute to a healthier planet."
eBay's decision to discontinue Amex payments is a significant change, but the company is confident that its customers will adapt to the alternative payment options available. As a seller, it's essential to be aware of this change and prepare for the transition. With eBay's commitment to providing a seamless experience, you can continue to focus on what matters most – selling and growing your business on the platform.
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
By ChannelMAX Staff Writer
2024-July#01
As an eBay seller, you must be aware of a significant change coming to the platform. In an official statement, eBay has announced that it will no longer accept American Express (Amex) payments globally, effective August 17, 2024. This change will impact both sellers and buyers on the platform, necessitating a shift to alternative payment methods.
The Reasoning Behind the Decision
eBay cites "unacceptably high fees" charged by Amex for processing credit card transactions as the primary reason for this decision.
The company states:
"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. 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."
Impact on Sellers and Buyers
eBay assures its users that the transition will be smooth. The company is notifying customers about this upcoming change to prepare them for the shift to alternative payment options. eBay's research suggests that the majority of its customers are willing to use other payment methods to continue their activities on the platform.
Alternative Payment Options
Sellers should be aware that eBay offers various alternative payment methods. These include:
- PayPal
- Apple Pay
- "Buy now, pay later" services like Klarna and Affirm
These options are expected to fill the gap left by the discontinuation of AmEx payments.
American Express's Response
In response to eBay's decision, American Express has issued a statement as reported by AP:
"We find eBay's decision to drop American Express as a payment choice for consumers to be inconsistent with their stated desire to increase competition at the point of sale," said Adam Isserlis, a spokesman for AmEx. The company also claims that eBay's cost to accept AmEx cards is "comparable to what eBay pays for similar cards on other networks" and that AmEx cardmembers typically spend double at eBay compared to other networks.
eBay's Stance on Competition and Costs
eBay emphasizes the need for more robust regulations to drive greater competition among credit card networks and help reduce transaction processing costs. The company states:
"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."
This change marks a significant shift in eBay's payment landscape. While it may require some adjustment, eBay remains committed to providing a variety of secure and popular payment options.
The company reaffirms its dedication to its global customer base, stating:
"With 2 billion listings and 132 million active buyers worldwide, eBay connects buyers and sellers in 190 markets around the world, fueling small business growth and creating economic opportunity for communities. Our customers have a deep affinity for eBay due to our unique inventory, attractive prices, and the meaningful role eBay plays in powering recommerce to contribute to a healthier planet."
eBay's decision to discontinue Amex payments is a significant change, but the company is confident that its customers will adapt to the alternative payment options available. As a seller, it's essential to be aware of this change and prepare for the transition. With eBay's commitment to providing a seamless experience, you can continue to focus on what matters most – selling and growing your business on the platform.
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
Disclaimer:
eBay is the registered trademark of the company.
AmEx is the registered trademark of the company.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
eBay is the registered trademark of the company.
AmEx is the registered trademark of the company.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.