eBay cuts ties with American Express over card fees

I think the cost is too high, eBay is falling American Express (American Express).

The online market will Stop using your American Express card as a payment method starting on August 17, the company said in a statement provided to PYMNTS on Wednesday (June 5).

“Payment processing costs should be declining due to advances in technology, investments in fraud capabilities, and customer protections from merchants like eBay, but due to the lack of meaningful competition, credit card transaction fees continue unabated,” eBay said.

The company added that its customers had been notified of the change and said its internal research showed that the vast majority of users “are willing to use alternative payment options to continue to enjoy buying and selling on our marketplace.”

A report Wednesday from Bloomberg News noted that the two companies have been negotiating merchant discount rates — also known as interchange fee — Fees charged by American Express at the point of sale. A fee is charged each time the card is used, Combined, card processing fees will cost retailers more than $172 billion by 2023, one trade group said.

When contacted for comment by PYMNTS, an American Express spokesperson provided the following statement:

“We are disappointed with eBay's decision to stop accepting American Express cards effective August 17, 2024. Doing so will limit customers' payment options and deprive customers of the service, security and rewards they value when paying with American Express cards. Express. Our research shows that the cost of accepting American Express in the U.S. is comparable to eBay's fees for purchasing similar cards elsewhere. We found that eBay's decision to drop American Express as a payment option for consumers is true to their claims. The desire to increase competition at the point of sale is inconsistent.

As reported last month, the Fed wants to lower interchange fees, a decision that recently triggered a series of reactions from various trade groups.

Meanwhile, eBay said last month it expected growth in the second half of the year Inconsistent spending by consumers.

Steve PriestThe company's chief financial officer said on the earnings call, “The demand environment in our key markets at the beginning of the year was uneven. For discretionary e-commerce, we continue to navigate a difficult environment, especially in the company's two largest markets. Markets UK and Germany.

The CEO was later asked about consumers' health during a conference call Jamie Iannone “We're operating in a really dynamic environment given the macro challenges of global inflationary pressures and interest rates. … The first quarter started off a little soft due to weather, but then we had a pretty good tax period.” I I want to say that Europe’s background is still weaker than that of the United States.”

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