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Online marketplace eBay Inc. announced June 5 that it can now not accept American Express as a payment method.
EBay said it’s notifying customers concerning the upcoming change. Within the meantime, the corporate shared that it offers a “number of popular, relevant, and secure payment options.”
EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by 2023 third-party GMV.
Of those 100 marketplaces, 12 (excluding eBay) don’t accept American Express as a payment method. Moreover, the change would make eBay the one U.S.-based marketplace to not offer American Express. The most important online marketplace not to just accept it’s JD.com Inc. London-based Etsy subsidiary Depop also doesn’t offer it. JD.com is No. 4 within the Global Online Marketplaces database, and Depop is No. 54. Etsy ranks No. 20.
Why is eBay dropping American Express?
Starting Aug. 17, eBay plans to discontinue its acceptance of American Express. It cited worries over inflation and rising costs amongst consumers and small businesses as reasons. Because of this, eBay said, there may be a necessity for more regulations to extend competition amongst bank card networks and reduce transaction processing costs for each buyers and sellers.
The net marketplace also said a “overwhelming majority” of its customers are willing to make use of alternative payment options.
“After careful consideration, eBay has decided to now not accept American Express globally effective August 17 as a result of the unacceptably high fees American Express charges for processing bank card transactions,” eBay said in a press release. “At a time when payment processing costs must be declining due to technological advancements, investments in fraud capabilities and customer protections by merchants like eBay, bank card transaction fees proceed to rise unabated due to an absence of meaningful competition.”
EBay just isn’t the primary major merchant to stop accepting American Express cards. Notably, Costco Wholesale Corp. ended its bank card partnership with American Express in 2016 after about 16 years. The move switched Costco over to Visa’s bank card network and replaced members’ co-branded bank cards with Citigroup-issue Visa cards.
Costco is certainly one of 39 online retailers within the Top 2000 to not accept American Express cards as payment. The Top 2000 is Digital Commerce 360’s database of the biggest online retailers in North America based on their annual web sales. Costco ranks No. 7 and is the biggest Top 2000 retailer not to just accept American Express.
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