Posted on 06/06/2024 3:56:43 AM PDT by C19fan
eBay customers will no longer be able to use American Express cards to pay for purchases from this summer.
The online marketplace announced Wednesday that it would no longer accept the cards from August 17. It blamed the 'unacceptably high fees' imposed byAmEx for processing transactions.
It is a huge blow to American Express, which has become a favorite among Gen Z consumers, and whose customers are often the most attractive among merchants as they tend to spend the most money per month on their cards.
(Excerpt) Read more at dailymail.co.uk ...
I remember when AmEx was a “charge card”: accounts had to be paid in full at the end of each billing month.
I have both a Gold and Platinum card, and I still pay it off every month. Interest? What interest? And I love their points systems and perks.
American Express angered me back in the day and I swore I would never carry one. So I don’t.
That was before they got greedy with their fees to retailers.
Same here.....
We know some small businesses that have gone all cash or check.
No credit cards.
Their margins are so thin they can’t afford the transaction fees.
AmEx was my first credit card but it’s high annual fee made me quit for a VISA.
On the other hand I haven’t bought anything on eBay for a decade so it is really no skin off my nose either side of this argument.
AMEX was the “go-to” card for corporate use for the longest time.
The catch was they charged retailers an exorbitant percentage on transactions, compared to other cards.
I think their high fees have been an issue for something like 50 years. American Express cards have generally had fewer businesses accepting them.
I think the news is that the worsening economy means even large retailers no longer have the margins to support paying those fees.
You mean bidenomic’s isn’t working? Come on, man! I can take you! /sarc
I had an uncle who was a small business owner. Back the 80's he refused, when feasible, to patronize businesses that accepted Diner's Club cards, saying that if they could afford to pay that card's fees, their markup was too high.
I’ve been with Amex for 37+ years and it’s still my favorite card, but it’s next to useless outside metropolitan areas.
IMO:
During the 2008 and 09 economic swoon AMEX was rather arbitrary and harsh in closing accounts and credit lines.
They decided to close out and cancel lines with low utilization in addition to the delinquent and problem accounts.
Their clearing of the decks included my OPTIMA card and thus I will not do business with them again.
It may be small and petty, but it is what it is.
I've heard their fee averages about 0.25% over what other cards charge, so I can see it as an issue for some.
“which has become a favorite among Gen Z consumers”
Hilarious. What a struggling generation. Biden should pay off more of their student loans.
I remember working in Retail in the 80’s at a Camera Shop. We accepted Amex but were told to put all the advertising under the counter and only offer to take AMEX for large purchases (> $800). This was because their fee structure was 2X higher than any other credit card at the time. AMEX has always been an issue with retailers, pretty surprised they haven’t been kicked to the curb earlier.
Not sure what their fee structure is now but in the early 80’s it was 4% and everyone else was 2%. Most other cards have upped their fees (I think they saw what AMEX was getting away with). I think that is the primary driver for so many small retailers and restaurants to charge a fee when using credit today. In the past is was just considered a price to do business, now it is a significant hit on profit margin.
I’ve never understood how Chase and other merchant payment processors can charge so much for simply transferring MY sales money to me,sometimes a day or two later. They’re all woke, as far as I can tell.
Bongino was trying to start a “parallel economy” version and I tried signing up with them. They never could connect it up properly. If someone could start up a good one, there’s a market for it.
Ebay is one to talk with their seller fees at 14.5%! Rippoff.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.