eBay has decided to drop American Express (Amex) cards as a payment method, starting 17 August 2024. Users will still be able to use their Amex on eBay by going through PayPal – but with large purchases, they may lose valuable Section 75 protection of the Consumer Credit Act 1974. Section 75 states that if one pays for something costing over GBP 100 and less than GBP 30,000 on a credit card, the card company is jointly liable with the seller if something goes wrong.
Crucially, for a purchase to be covered by Section 75, there has to be a direct link between the customer, the credit card issuer, and the place the customer bought it from – and, in some cases, using PayPal can break this link.
eBay will continue to accept Mastercard and Visa credit cards after 17 August 2024 – and using these would get customers the Section 75 protection when paying directly (in other words, not through PayPal). Users should note that debit cards aren’t covered by Section 75, though they do have some Chargeback rights which could still help them get their money back if something goes wrong.
eBay said it was making the change due to ‘the unacceptably high fees American Express charges for processing credit card transactions’.
In a statement, Amex said it was ‘disappointed’ by eBay's decision, adding that the move would ‘limit customers’ payment choices’ and ‘take away the service, security, and rewards that customers value when paying with American Express’.
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