eBay has announced it will no longer accept American Express credit cards from today. This decision is due to high processing fees charged by American Express. As a result, millions of Amex cardholders will need to find new ways to pay on eBay.

eBay has just made a big change that affects millions of shoppers around the world. Starting today, eBay will no longer accept American Express (Amex) credit cards as a payment option. This might sound surprising, but it’s all about money and fees.

Why is this happening?

eBay explained that the main reason for this change is the “unacceptably high fees” that American Express charges to process transactions. When you use an American Express card, eBay has to pay a fee of up to 4% of the purchase amount. This is much higher than the fees charged by other credit card companies. To keep costs down and offer better deals to their customers, eBay decided to cut ties with Amex.

What does this mean for you?

If you’re one of the many people who use American Express to shop on eBay, you will need to use a different payment method from now on. This change will be effective everywhere eBay operates, so it’s not just in one country—it’s a global update.

American Express has a lot of cards in use. In 2022, there were over 133 million Amex cards around the world. In 2020, it was the fourth most popular way to pay online, after Visa, Mastercard, and PayPal. So, this change is quite significant.

Who else has done this?

eBay is not the only big retailer to stop accepting American Express. For example, Costco, a popular warehouse store, stopped accepting Amex cards almost ten years ago. In the UK, Greggs, a well-known bakery chain, also doesn’t take Amex cards.

What does American Express say?

American Express is not happy about eBay’s decision. They released a statement saying they are “disappointed” that eBay is limiting payment options for its customers. They think eBay should offer more choices for people when they shop online.

What are your options now?

If you are an American Express cardholder, you will need to use other payment methods when buying things on eBay. Luckily, there are plenty of alternatives. You can use Visa, Mastercard, or PayPal, all of which are still accepted on eBay. You might also want to check if eBay offers any new payment options that could be convenient for you.

How does this affect eBay’s business?

By dropping American Express, eBay hopes to save money on transaction fees. This move is part of a bigger trend where companies are trying to reduce costs and find more affordable ways to do business. eBay’s decision might also influence other retailers to reconsider their payment options and fees.

What’s the big picture?

This change highlights a growing issue in the world of online shopping: the cost of processing payments. As companies like eBay look for ways to cut costs, they are making decisions that impact how we pay for things. It’s important for shoppers to stay informed about these changes so they can plan accordingly.

In the end, while this change might be inconvenient for some, it’s a reminder of how important it is for both businesses and customers to be aware of payment options and fees. So, if you’re an American Express user who shops on eBay, remember to update your payment method to ensure your shopping experience remains smooth and hassle-free.