eBay announced that it will stop accepting American Express globally starting August 17, citing "unacceptably high fees" that are charged for processing credit card transactions.
The e-commerce company also shared that customers are now being notified of the upcoming change to prevent any confusion after August 17.
eBay Ends Acceptance for American Express Cards
In a statement, eBay revealed the difficulties brought by American Experesse's high charging fees. The company also emphasized the lack of meaningful competition among credit card companies.
"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," eBay wrote.
On the contrary, American Express expressed its disappointment over eBay's decision. The credit card company stated that the cost of acceptance for them is similar to other networks.
eBay Suggests Alternative Payment Options
According to eBay, the majority of its customers are willing to use other payment options to continue shopping and selling on the platform. The e-commerce company still accepts Visa, Mastercard, PayPal, Venmo, and other payment methods.
Meanwhile, American Expresses claimed that eBay's decision will limit customers' payment choices. In addition, customers will not be able to take advantage of the credit card's security and rewards. Regardless, the company revealed that eBay represents less than 0.2% of their total reach.
As of writing, eBay has started to notify its customers, informing them of the changes. The e-commerce platform holds more than 2 billion listings and 132 million active buyers around the world.
The company will continue providing support to connect merchants and sellers in 190 markets worldwide. eBay is widely popular for small businesses and startups.
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