EBAY customers will no longer be able to pay with a popular credit card from mid-August.
The e-commerce site attributes the decision to company policies.
eBay will no longer accept American Express as a payment method, the company has confirmed.
He said FOX Business that the “unacceptably high fees that American Express charges for processing credit card transactions” led to the decision.
Customers will no longer be able to use American Express, also known as AmEx, starting August 17th.
The change applies not just in the US, but across the world.
eBay added: “At a time when payment processing costs should be decreasing due to technological advances, investments in the fraud capabilities and customer protection of merchants like eBay, credit card transaction fees continue to rise unabated due to a lack of meaningful competition.”
However, American Express reacted to eBay’s decision.
In a statement, the credit card company argued that this “will limit customers’ payment options and take away the service, security and rewards that customers value when paying with American Express.”
American Express also rejected allegations that it charged merchants significantly higher fees than other companies.
“Our research tells us that in the US the cost of accepting American Express is comparable to what eBay pays for similar cards on other networks.
“We consider eBay’s decision to abandon American Express as a payment option for customers to be inconsistent with its stated desire to increase competition at the point of sale.”
‘UNWORTHY TO USE ALTERNATIVE’
eBay said it is not concerned about customers leaving the store as a result of the change.
“Based on internal research, we know that the vast majority of eBay customers are willing to use alternative payment options to continue buying and selling on our marketplace,” the company told Fox Business.
eBay will continue to accept other credit cards such as Visa, Mastercard and Discover.
Also accepted Google Pay, PayPal and other payment methods.
Retailers That Don’t Accept AmEx
In the US, the following retailers do not accept American Express
- Costco
- eBay (coming August 17)
- Many smaller, independent retailers
- Some insurers
WHY AMERICAN EXPRESS?
Many American Express cardholders like to use their cards as their preferred payment method.
This is mainly due to the comprehensive rewards program that gives customers points to be redeemed on travel and other categories.
The American Express Platinum Card gives cardholders access to airport lounges around the world.
However, it has a high annual fee – $695.
Find out how one woman maintained an 800 credit score for over 10 years.
And see why Walmart is no longer giving out credit cards to new stores.
This story originally appeared on The-sun.com read the full story
