EBay To Stop Accepting Amex Cards in August 2024, Citing High Fees (2024)

Lead Editor, Credit Cards & Travel Rewards

Updated: Jun 7, 2024, 11:15am

Table of Contents

Show more

Credit card processing fees, also known as interchange or swipe fees, are a charge incurred by a seller every time a card is used as payment for goods or services. American Express is notorious for charging the highest interchange fees of any credit card network—and beginning in August, eBay won’t be paying them anymore.

Whether this is a big hit to either company remains to be seen. On its end, Amex says, “EBay represents less than 0.2% of our total network volume,” and that it’s “disappointed that eBay made the decision to stop accepting American Express Cards.”

Additionally, Amex recently reported Millennials and Gen Z customers made up over 60% of new account openings in its Q1 2024 report. According to a forward-looking statement, it also intends to attract more of this valuable demographic. But are they shopping on eBay?

Last month, eBay adjusted its sales forecast, suggesting that sales may be declining, although its stock has been up since the beginning of the year. From its perspective, an eBay spokesperson said customers “are willing to use alternative payment options,” meaning cards that use other payment networks like Visa, Mastercard and Discover.

Earlier this year, the Consumer Financial Protection Bureau moved to cap credit card late fees at $8 per occurrence, with a remark from director Rohit Copra that credit card companies exploit loopholes “to harvest billions of dollars in junk fees from American consumers.” The CFPB has vowed to reduce these fees, but so far, credit card interchange fees haven’t come under scrutiny.

Still, that won’t stop companies like eBay from refusing to pay fees it deems unacceptable. Should more retailers join eBay, it could force Amex’s hand to reduce fees to be more in line with its competitors.

Additionally, if Amex starts losing acceptance, it could potentially ding the trust of its newfound young customers who use Amex cards to pay for their purchases. Or, of course, this could be a one-off event. But it’s significant that a company as prominent as eBay is refusing to come to an agreement with one of the largest payment processors in the U.S.

Large retailers have their own agreements with each payment processor, but on average, merchants pay from 1.5% to 3.5% of every transaction for credit card payments. As you can imagine, that adds up to billions per year in profit for credit card companies.

Amex fees tend to be around 1% more per transaction than Visa, Mastercard or Discover. Because of this, some local businesses and select merchants have stopped accepting Amex cards altogether. That’s a bummer if you’re hoping to use a card like the American Express® Gold Card (Terms apply, see rates & fees) for extra Membership Rewards® points, the Delta SkyMiles® Platinum American Express Card (Terms apply, see rates & fees) for Delta SkyMiles or the Marriott Bonvoy Brilliant® American Express® Card (Terms apply, see rates & fees) for more Marriott Bonvoy points, because some retailers don’t want a part in subsidizing these (or other Amex) rewards cards—and now eBay is among them.

Maybe it’s nothing, or maybe it’s the beginning of a long line of followers, but eBay won’t accept Amex cards as of August 17, 2024. For those times when American Express cards aren’t accepted, check out our lists of the best Visa credit cards, best Mastercard credit cards and best Discover credit cards to have as backup in your wallet (or mobile device) if this becomes a trend. If you’re loyal to eBay, consider one of the best cards for online shopping—excluding any Amex cards on the list.

To view rates and fees for American Express® Gold Card please visit this page.
To view rates and fees for Delta SkyMiles® Platinum American Express Card please visit this page.
To view rates and fees for Marriott Bonvoy Brilliant® American Express® Card please visit this page.