The Redlich Law Firm no longer accepts American Express through PayPal.
I logged into my PayPal account today. There was a notice that, going forward, AMEX transactions will require a higher fee of 3.5% of the transaction, plus 30 cents per transaction.
We currently pay 2.2% of the transaction plus 30 cents, so on a $1000 fee, we pay $22.30. If we agreed to the 3.5% rate, we would be paying $35.30.
We think most of our clients pay with Visa or MasterCard. Most of our payments are through our website and we can't see what kind of card they use. But for our over-the-phone payments, we hear the type of card as we enter it.
We do get some AMEX transactions, but not that many. And I suspect most American Express cardholders also have a Visa or MasterCard.
I'm stunned at the attempt to grab so much more money from PayPal sellers. If it had been an extra 0.2%, maybe I would have swallowed hard and agreed. But the extra 1.3% works out to a greater than 50% increase in cost of this service.
This will make it easier to throw out the American Express card offers I get in the mail all the time.