EBay's Decision to Drop American Express - What it Means for Online Shoppers

EBay's Removal of American Express

EBay Inc. recently announced that it will no longer accept American Express Co. cards as a payment option starting August 17. The decision stems from what EBay describes as 'unacceptably high fees' charged by American Express for processing credit card transactions. The move will impact online shoppers who prefer using American Express cards for their purchases.

Fee Dispute and Negotiations

According to EBay, the decision to drop American Express globally was made after careful consideration of the fees charged by the credit card company. The two companies have been in negotiations over the merchant discount rates, also known as interchange fees, which are levied by American Express at the point of sale. While American Express argues that its fees are in line with industry standards and reflect the value it provides, EBay believes the fees are too high and unsustainable for their business model.