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EBay Cutting Amex Ties Over Card Fees

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SouthJamaica
Mega Contributor

EBay Cutting Amex Ties Over Card Fees

EBay Cutting Amex Ties Over Card Fees

https://www.pymnts.com/credit-cards/2024/ebay-cutting-amex-ties-over-card-fees/


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 1 of 9
8 REPLIES 8
DoppelgangerD
Regular Contributor

Re: EBay Cutting Amex Ties Over Card Fees

Without getting into too much, this is mostly BS on the side of eBay, and honestly quite ironic that they complain about usage fees when their selling fees aren't anywhere close to cheap.

I think Amex is likely to be the least used card on their platform, making it easier to try to strong arm them for lower fees, going as far as removing them without much loss, hoping Amex will blink first.

Don't get me wrong though, both banks and large corporations are more evil than good, but in this case I'm just saying, I think eBay is making a move that's backfiring on them before it's even done.

The biggest impact could be for those using the Amex BCE card for their recently added 3% cash back for Online Shopping category.

Personally I used to use eBay a lot, but these days it's like literally twice a year, and when I do, it's the PayPal MC for 3% CB.

Message 2 of 9
SouthJamaica
Mega Contributor

Re: EBay Cutting Amex Ties Over Card Fees


@DoppelgangerD wrote:

Without getting into too much, this is mostly BS on the side of eBay......


How can we know that, without knowing what Visa and Mastercard are charging them vs how much American Express is charging them?

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 3 of 9
JoeRockhead
Senior Contributor

Re: EBay Cutting Amex Ties Over Card Fees

I found myself curious, so I went to last month's card processing statement for one of my businesses to see what the overall percentage of the total fees charged came out to for Amex, Visa and MC (didn't process one single Discover card, weird)

 

  • American Express = .029%
  • MasterCard = .028%
  • Visa = .023%  

I realize this is based on the processing fees I'm charged, so the argument can be made that it's not a comparison to a behemoth like eBay, but never the less, I'd consider the fees fairly comparable to one another, and would also agree that eBay receives more competitive fees.

 

As a consumer, while I can simply choose a different form of payment, or find a possible loophole (PayPal?) to potentially still use Amex. I'm not sure I'm really a fan of an entity limiting my choices for me.

 

As an entity, I personally try to offer as many payment methods available in order to make payments more convenient, and customer friendly. I'm also all for lower fees (since I have yet to pass along any fees to my customers) but, rather than ax a main stream payment method altogether, why not just say fine, you want to use your Amex (because you have 0% for 12 months, points, CB etc..), it's going to cost you .001% (or whatever %) of your purchase price added on top. That way they're not losing out on what is likely a significant amount of profits.

 

I guess they're basically saying to the consumer... if you're planning to use Amex for your planned purchases, plan different. 

 

It all just seems like little more than one giant pi**ing contest to me.

Message 4 of 9
pizzadude
Credit Mentor

Re: EBay Cutting Amex Ties Over Card Fees

More discussion also in this thread in credit cards

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 9
sjt
Senior Contributor

Re: EBay Cutting Amex Ties Over Card Fees

What gets me is that Visa and MasterCard's discount fees are tierd. Rewards and super prime Visa/MasterCard discount fees are about the same as Amex. Hence the conversation to World Elite MC and Visa Signature Card.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 6 of 9
ptatohed
Valued Contributor

Re: EBay Cutting Amex Ties Over Card Fees

I always get 5% at ebay.  I buy ebay gift cards at target.com for 5% off.  

 

https://www.target.com/p/ebay-gift-card-email-delivery/-/A-52960716?preselect=52625519#lnk=sametab

 

 

 

5% CB rotating: ;
Everyday 3% CB: ;
Everyday 5%: ;
Companion Card: ;
Everyday 2.2% CB: ;
Retired to sock drawer after AOD (kept alive w/ 1 purchase every 6 mo): ;
On my radar: ;
Still Waiting for an Invite: ;
No hope:
Message 7 of 9
DoppelgangerD
Regular Contributor

Re: EBay Cutting Amex Ties Over Card Fees


@ptatohed wrote:

I always get 5% at ebay.  I buy ebay gift cards at target.com for 5% off.  

 

https://www.target.com/p/ebay-gift-card-email-delivery/-/A-52960716?preselect=52625519#lnk=sametab

 

 

 


I like to buy those types of GCs at my local grocery store.

I'll use a card that gives 5 or 6% CB, and the store itself has rewards that equal a minimum of 2% CB, and sometimes more when they run promotions.

Target also often has promotions like spend $50 and get $10 off or get a $5 GC, etc ...

Message 8 of 9
Zoostation1
Valued Contributor

Re: EBay Cutting Amex Ties Over Card Fees

@JoeRockheadSeriously...I think you summed it up quite well at the end.

Rebuild Started Nov 2021
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Message 9 of 9
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