Arguing its fees are too high, eBay is dropping American Express Amex.
The online marketplace will stop taking Amex as payment choice starting Aug 17 the company said in statement provided to PYMNTS Wednesday June 5.
The company adds that its consumers have been notified about change and says its internal research shows that various majority of its users are willing to use change payment options to continue enjoying purchasing and selling on marketplace.
When payment processing costs should be decreasing due to technical advancements investments in fraud capabilities and consumers protections by merchants like credit, eBay and transaction fees continue to climb unabated due to lack of meaningful competition.
We operate in dynamic enviroment given macro challenges globally inflationary pressure and interest rats Q1 start off bit softer due to weather. The backdrop remain weaker in Europe than it does in the US.
The Federal Reserve desire to lower interchange fees a decision that prompted a flurry of responses from trade groups.
The company CFO Steve priest said during earning call that there had been uneven demand enviroment in major markets to start year. We continue to navigate through tough enviroment. for discretionay eCommerce, in UK and Germany two of company mega markets.
eBay add last month that it anticipated seeing growth in latter half of year amid inconsistent spending by consumers.
“We are disappointed that eBay made decision to stop accepting American Express Cars as August 17th 2024.
They will limit customer payment choices and take away service, security rewards customer value when paying with American Express.
The two companies have been negotiating merchant discount rates known as interchange fess that Amex charges at point of sale. The fees are charge each time a card is used and can add up with one trade group saying card processing fees cost retailers extra $172 billion in 2023.