🛒 eBay's Announcement
On August 17th, eBay will stop accepting American Express cards due to what it calls "unacceptably high fees." This decision was announced on June 6, 2024. eBay states that rising credit card transaction fees, driven by a lack of competition, have made this move necessary. "There is a need for more robust regulations to drive greater competition to credit card networks and help reduce transaction processing costs," eBay noted in its announcement.
💳 The Fee Dispute
eBay’s decision is based on the fees it pays for credit card transactions, which it finds too high. American Express disputes this claim, stating that its fees are similar to those of other cards that eBay accepts, like Visa, Mastercard, and Discover. Amex mentioned on its website, "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."
📊 Impact on eBay and Amex
eBay still accepts other payment methods, including Visa, Mastercard, Discover, PayPal, Apple Pay, Google Pay, and Venmo. The impact on American Express is expected to be minimal since eBay transactions account for less than 0.2% of Amex’s total network volume. However, this move highlights ongoing tensions between retailers and credit card companies over transaction fees.
🔍 A Look at the Past
This is not the first time such disputes have arisen. In 2022, Amazon nearly stopped accepting Visa in the UK over similar fee concerns. These incidents reflect broader issues in the credit card industry regarding transaction fees and competition. Retailers often argue that high fees hurt their margins, while credit card companies claim their fees are necessary to cover costs and provide benefits to consumers.
Do you agree with eBay's decision to drop Amex?
