AMEX is NOT treating coin and bullion as cash advances...are coin dealers unaware of this?!?

Kurisu

So last year
AMEX announced that it would be treating purchases of coins and bullion as cash advances...they then quickly changed their minds about this, "Effective October 1, 2021 (aka now), “precious metal coins or bullion and digital precious metals products” are no longer considered as a cash advance, so those purchases should earn points, miles, and cash back."

So why is pretty much EVERY coin dealer on ebay no longer accepting AMEX?! EVERY seller I've purchased from during the last couple years it seems no longer accepts AMEX.

Did ebay forget to announce this in seller forums?...do sellers not know AMEX is fine? What gives?!?
I get more rewards on my AMEX than any of my other cards...I want to use my AMEX for coins again!!!

291fifth

What % do they charge the retailers? This is probably where the answer to your question lies.

Kurisu

Choosing to allow AMEX as payment on ebay does not cost sellers more...it's just a different fee structure for ebay to deal with. Sellers are free to choose to accept Visa, MasterCard, Discover Card, and American Express.

jmlanzaf

AMEX charges retailers as much as 5% per transaction. The high fee is why they don't accept AMEX. This has been true for decades.

As a seller,I accept managed payments. I do not accept other payment methods nor do I choose the methods within managed payments. Are you sure it isn't ebay that is excluding it for bullion. After all, total transaction fees for bullion can be under 5% so ebay would be losing money on every sale.

MasonG

@Kurisu said:
Did ebay forget to announce this in seller forums?...do sellers not know AMEX is fine? What gives?!?!

I sell on eBay and have absolutely no input into how buyers choose to pay.

Kurisu

@jmlanzaf said:
AMEX charges retailers as much as 5% per transaction. The high fee is why they don't accept AMEX. This has been true for decades.

As a seller,I accept managed payments. I do not accept other payment methods nor do I choose the methods within managed payments. Are you sure it isn't ebay that is excluding it for bullion. After all, total transaction fees for bullion can be under 5% so ebay would be losing money on every sale.

I am not sure if ebay is excluding it... I haven't spent time in the sellers forums recently. But I will since I'll be a seller again in 2022!
It's been a couple years since I was doing heavy selling on ebay...if AMEX is charging sellers 5% per transaction then that would most likely explain it I think...

jmlanzaf

@Kurisu said:

@jmlanzaf said:
AMEX charges retailers as much as 5% per transaction. The high fee is why they don't accept AMEX. This has been true for decades.

As a seller,I accept managed payments. I do not accept other payment methods nor do I choose the methods within managed payments. Are you sure it isn't ebay that is excluding it for bullion. After all, total transaction fees for bullion can be under 5% so ebay would be losing money on every sale.

I am not sure if ebay is excluding it... I haven't spent time in the sellers forums recently. But I will since I'll be a seller again in 2022!
It's been a couple years since I was doing heavy selling on ebay...if AMEX is charging sellers 5% per transaction then that would most likely explain it I think...

https://www.thesimpledollar.com/credit-cards/american-express-merchant-fees/

According to this they are at 3 5% now.

Although PayPal is also set 3.5% now. So there may be something else.

MasonG

I checked a few eBay listings (clothing, tools, electronics, coins and paper money) and AMEX is listed as a payment option for all but coins and paper money. This is for managed payments, BTW.

jmlanzaf

Here's more

https://www.merchantmaverick.com/complete-guide-american-express-interchange-fees-processing-rates/

jmlanzaf

Ebay forum

https://community.ebay.com/t5/Buying/Unable-to-pay-with-amex/td-p/31757799

jmlanzaf

It appears no one knows for sure.

MasonG

@jmlanzaf said:
Ebay forum

From one of the posts in your link:

"I absolutely refuse to use anything but AMEX. I have told AMEX that as well. I do have other options but AMEX rewards are insane with my card."

It would appear buyers want cc rewards that sellers/payment processors can't afford to provide without losing money on the deal.

jmlanzaf

@MasonG said:

@jmlanzaf said:
Ebay forum

From one of the posts in your link:

"I absolutely refuse to use anything but AMEX. I have told AMEX that as well. I do have other options but AMEX rewards are insane with my card."

It would appear buyers want cc rewards that sellers/payment processors can't afford to provide without losing money on the deal.

Yeah, I don't know. AMEX did flip flop on the bullion as of October 1. Maybe Ayden hasn't caught up.

Given Paypal's rate increase, they are as expensive s AMEX.

Payment processing isn't cheap. I wonder if this is the better place for crypto to be disruptive. Digital cash replacement. Of course, that doesn't solve the rewards problem.

amwldcoin

If you want to use AMEX just use your paypal account.

@MasonG said:
I checked a few eBay listings (clothing, tools, electronics, coins and paper money) and AMEX is listed as a payment option for all but coins and paper money. This is for managed payments, BTW.

airplanenut

I bought something a few days ago and saw AMEX wasn’t an option on eBay. That said I had a reason to use PayPal for that purchase and the same Amex card not available on eBay was seemingly available in PayPal. I didn’t want to use the card so I didn’t try it, but unless it was going to tell me after hitting the pay button that the card was no good, all indications are I could have used it.

U1chicago

@amwldcoin said:
If you want to use AMEX just use your paypal account.

@MasonG said:
I checked a few eBay listings (clothing, tools, electronics, coins and paper money) and AMEX is listed as a payment option for all but coins and paper money. This is for managed payments, BTW.

That would be my suggestion as well. The only holdup might be if someone’s AMEX has a special rewards offer for eBay but not for PayPal.

Kurisu

@jmlanzaf said:

@Kurisu said:

@jmlanzaf said:
AMEX charges retailers as much as 5% per transaction. The high fee is why they don't accept AMEX. This has been true for decades.

As a seller,I accept managed payments. I do not accept other payment methods nor do I choose the methods within managed payments. Are you sure it isn't ebay that is excluding it for bullion. After all, total transaction fees for bullion can be under 5% so ebay would be losing money on every sale.

I am not sure if ebay is excluding it... I haven't spent time in the sellers forums recently. But I will since I'll be a seller again in 2022!
It's been a couple years since I was doing heavy selling on ebay...if AMEX is charging sellers 5% per transaction then that would most likely explain it I think...

https://www.thesimpledollar.com/credit-cards/american-express-merchant-fees/

According to this they are at 3 5% now.

Although PayPal is also set 3.5% now. So there may be something else.

I also notice that most of the sellers I'm looking at who don't accept AMEX do accept PayPal...soooo....?