admineBay customers will no longer be able to use American Express credit cards to pay for purchases on the online marketplace come mid-August.
The e-commerce company said in a statement to FOX Business that “unacceptably high fees American Express charges for processing credit card transactions” have prompted it to cease accepting American Express as of Aug. 17.
The move, earlier reported by Bloomberg and The Associated Press, will apply for eBay transactions in all markets around the world where the online marketplace operates.
“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 also said.
American Express voiced disappointment about eBay’s decision and argued in a statement that the online marketplace “will limit customers’ payment choices and take away the service, security, and rewards that customers value when paying with American Express.”
“Our research tells us that in the US the cost of acceptance for American Express is comparable to what eBay pays for similar cards on other networks,” the credit card company said in its statement. “We find eBay’s decision to drop American Express as a payment choice for customers to be inconsistent with their stated desire to increase competition at the point of sale.”
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Using American Express has been an option for eBay customers for quite some time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EBAY | EBAY INC. | 53.01 | -0.74 | -1.38% |
| AXP | AMERICAN EXPRESS CO. | 234.74 | -2.42 | -1.02% |
“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,” eBay told FOX Business.
When American Express stops being an option in August, the e-commerce company will still accept other credit cards, as well as debit cards, Google Pay, PayPal and other payment methods.
The e-commerce giant has reported having over 2 billion active listings on its online marketplace and over 132 million active buyers. In its first quarter, it saw a gross merchandise volume of $18.6 billion.
As of Wednesday, eBay shares have risen over 21% from the start of the year.
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