eBay axes major payment option used by millions of customers
EBAY has announced it is axing a major payment option used by millions of customers worldwide.
Starting from August 17, 2024, shoppers on the e-commerce website will no longer be able to pay with American Express credit cards.
GettyAmerican Express customers won’t be able to use their credit cards on eBay starting from August 17[/caption]
eBay blamed the decision on the “unacceptably high fees” Amex charges for processing credit card transactions.
The company confirmed the change will be implemented globally starting from mid-August, and said customers will have other ways to pay.
American Express fees can be as high as 4% and because of this, many retailers don’t accept Amex credit cards as a form of payment.
The National Retail Federation says the average fee to accept a credit card is roughly 2%, but it can be as high as 4% on premium rewards credit cards like Amex.
And eBay is not the first major retailer to walk away from the credit card company, as Costco stopped accepting American Express cards nearly a decade ago.
In the UK, Greggs is one of the retailers that don’t accept Amex card payments.
The announcement comes as a huge blow to Amex customers who use their credit cards to shop on eBay.
It is estimated that in 2022, there were over 133 million Amex cards in circulation globally – and according to net e-commerce sales for 2020, Amex was the fourth most popular method of payment, after Visa, Mastercard and PayPal.
In a statement, American Express said it was “disappointed” and criticised eBay for limiting the payment choices customers have when shopping on the website.
The company added that in the US, the cost of acceptance for Amex is “comparable” to what eBay pays for similar cards on other networks.
A spokesperson said: “We are disappointed that eBay made the decision to stop accepting American Express Cards as of August 17th, 2024.
“By doing so, they will limit customers’ payment choices and take away the service, security, and rewards that customers value when paying with American Express.
“Our research tells us that in the US the cost of acceptance for American Express is comparable to what eBay pays for similar cards on other networks.
“We find eBay’s decision to drop American Express as a payment choice for consumers to be inconsistent with their stated desire to increase competition at the point of sale.
“Additionally, eBay represents less than 0.2% of our total network volume.
“American Express Card Members can continue to use their Cards with millions of merchants around the world.”
Announcing the removal of Amex as a method of payment, a spokesperson for eBay said: “After careful consideration, eBay has decided to no longer accept American Express globally effective August 17 due to the unacceptably high fees American Express charges for processing credit card transactions.
“At a time when payment processing costs should be declining because of technological advancements, investments in fraud capabilities and customer protections by merchants like eBay, credit card transaction fees continue to rise unabated because of a lack of meaningful competition.
“As consumers and small businesses are worried about inflation and rising costs, there is a need for more robust regulations to drive greater competition to credit card networks and help reduce transaction processing costs for merchants and their customers.”
The statement added: “eBay customers are being notified about this upcoming change to prepare them for a smooth transition starting August 17 to the variety of popular, relevant, and secure payment options available on our marketplace.
“Based on research, we know that the vast majority of eBay customers are willing to use alternative payment options to continue enjoying buying and selling on our marketplace.
“With 2 billion listings and 132 million active buyers worldwide, eBay connects buyers and sellers in 190 markets around the world, fueling small business growth and creating economic opportunity for communities.
“Our customers have a deep affinity for eBay due to our unique inventory, attractive prices, and the meaningful role eBay plays in powering recommerce to contribute to a healthier planet.”
How to shift your credit card debt quickly
By James Flanders, Consumer Reporter
UK Finance reports that we spend a whopping £2 billion a month using our credit cards.
While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost.
According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult.
And if you’re stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges.
For example, if you owe £1,312 on your credit card and are charged 24.8% APR.
If you don’t make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest.
However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162.
If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month.
They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee.
Before taking out a new credit card or increasing the amount you borrow, it’s vital to consider the consequences.
You should only borrow money if you can afford to pay it back.
It’s always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft.
If you use a credit card, I’d recommend that you always pay off your balance in full at the end of each statement period.
Lenders have a responsibility to help customers who are in debt.
If you’re in a debt crisis, your first point of call should be your lender.
They might help you out by offering you a reduced interest rate or a temporary payment holiday – so check in with your lender if you’re struggling.
In April, eBay announced a shake-up in fees, meaning that those wishing to flog their second-hand fashion aren’t charged anything.
All charges including listing and final value fees now no longer apply to pre-owned fashion.
Pre-owned fashion includes items you have worn once, old favourites or brand new items with tags on that you have just never got around to wearing or returning.
Kirsty Keoghan, general manager of global fashion for eBay, told The Sun: “If you sell a dress and list it for £20, you’ll get that full £20 into your account.
“We’re excited to tackle the nation’s overflowing wardrobes, help people earn more money and keep clothes out of landfill.”
It’s important to note though that this change is just for second-hand fashion and not for selling other items like electronics or toys.
Top tips for selling on eBay
NEW to eBay? It's head of secondhand, Emma Grant, reveals how to optimise your listings:
Use key words – eBay automatically filters listing titles for key words, so it’s crucial to use the terminology people search for – especially brand and product names.
Choose the right category for your product – It might sound obvious but it’s important to always choose the most specific category to sell in.
Pictures are important – Most users will not bid on items they cannot see. For best results, take photos in natural light against a neutral background and be honest about any scratches or damage to the item.
Be as detailed as possible – Be honest about the condition of the product and be sure to note any wear and tear.
Look at past sold items– eBay has a function that allows you to search for the item you want to sell and then filter the results by sold items. Here, you can view the price the item has sold for and get insight into how others have listed it.
Selling Sundays – Get the timing right. The busiest time for buyers is Sunday evenings, so schedule your listings to end around that time. Opt for seven-day auctions to ensure the max number of bids. The longer your item is listed, the more chance of people seeing it, so unless it’s time-sensitive, pick seven days. December is the busiest month on eBay.
Be realistic with pricing – Try searching for similar items on eBay, to make sure you’re going for the right price and always ask yourself “would I pay this price for this item?”
Donate to charity – When listing your item, consider donating a percentage of the sale to a cause of your choice – from 10% to 100% – you can donate the funds raised from your item straight from the platform.
What charges do eBay sellers have to pay?
It’s free to list up to 1,000 items on eBay each month, after which you have to pay a 35p charge per listing.
However, sellers now have to pay a raft of fees if their item sells.
When the platform first launched in 1995, there were no seller fees at all.
After a couple of years, it began charging a small one-off fee, before it introduced a “final value fee” of 0.5% of the sale price in 1999.
Over time, the fees have gradually crept up and started eating into sellers’ earnings, as the cost of operating has increased with new regulations being introduced.
Fast-forward to 2024 and the platform now charges sellers a final value fee of 12.8% on the total sale price, which includes postage costs, plus a fixed 30p charge per item sold.
The final sale fee is reduced to 3% for earnings on a single item over £5,000.
Ebay’s new regulatory fee, which comes into effect today, will take its basic seller charges to 13.15% plus 30p.
Depop fully removed its 10% selling fee for users based in the UK.
From March 20, sellers listing items on the platform have received more money from each sale as the 10% selling fee for new listings was removed.
It will mean, for example, that those selling an item for £20, will no longer have £2 taken off the transaction amount to cover this fee.
Vinted, on the other hand, doesn’t charge users anything to list or sell their items, making it essentially free for sellers.
Instead, it charges buyers a “Buyer Protection fee” of 3-7% plus 30p-80p.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
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