Online auction giant eBay announced that, as of Aug. 17, American Express will no longer be accepted for payment. It cited “unacceptably high fees” as the reason for discontinuing acceptance of American Express cards. Customers of eBay can use other forms of payment, like Visa, Mastercard, Discover, debit cards, Apple Pay, Google Pay, Venmo and PayPal.
[Read: Best Rewards Credit Cards.]
American Express Merchant Fees Explained
American Express offers some of the best credit card rewards and benefits available to consumers, which are in part funded by merchant fees. Generally, American Express charges merchant fees that are about 1 percentage point higher than Visa, Mastercard and Discover. But some merchants, including eBay, don’t accept American Express because of its higher fees.
[Read: Best Cash Back Credit Cards.]
Alternative Credit Cards for eBay
You can’t use American Express cards on eBay beginning Aug. 17, but eBay will continue to accept credit cards in the Visa, Mastercard and Discover networks. Some of the best American Express alternatives for eBay purchases offer cash back rewards along with other perks. Consider these cards if you’re searching for a new card to use on eBay:
— eBay Mastercard: The eBay Mastercard has no annual fee and earns three points per dollar on eBay for your first $1,000 spent in a calendar year. After you spend $1,000 on eBay, the card earns five points per dollar for the rest of the year. It also earns two points per dollar on gas, restaurant and grocery purchases and one point per dollar on all other purchases.
— PayPal Cashback Mastercard®: You can earn 3% cash back when you check out with PayPal and pay using your PayPal Cashback Mastercard®. It earns 1.5% on all other purchases and has no annual fee.
[Read: No-Annual-Fee Credit Cards.]
— Wells Fargo Active Cash® Card: The Wells Fargo Active Cash® Card has no annual fee and earns unlimited 2% cash back on all purchases, including online shopping, with no categories to track or quarterly activations. (See Rates & Fees)
— Bank of America® Customized Cash Rewards Credit Card: This card offers 3% cash back in the category of your choice, which can include online shopping such as eBay. You’ll also earn 2% cash back at grocery stores and wholesale clubs and 1% on all other purchases. This card has no annual fee.
“Anyone looking to maximize their rewards could consider getting a credit card that gives you an increased earning rate on online purchases or has a strong base earning rate,” says Barry Choi, a credit cards and personal finance writer with more than 10 years of experience. “For those who use eBay a lot, the eBay Mastercard is also worth considering.”
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eBay Breaks Up With American Express Over ‘Unacceptably High Fees’ originally appeared on usnews.com
