Facebook just lost as much as 30% of its advertiser base

December 31st, 2007 • Related • Filed Under

Facebook losses as much as 30% of its potential advertisers.Facebook is no longer accepting American Express. In another major blow to the Facebook platform, it seems they have been terminated from accepting American Express. For those not familiar with American Express TMF(Terminated Merchant File), AMEX can be relentless with merchants regardless of size, shape or volume. The bigger question is what does this do for Facebook when they can no longer process transactions from the one credit card used by many business owners online? The reality is that they better find a real fraud management solution as their current solution simply doesn’t cut it. Too often major sites like Facebook take the arrogant position that they can do better, but the reality is that it’s not their core competency and until they find a solution capable of handling real risk management, they will no longer be able to process what may have accounting for as much of 30% of its advertiser base.

Bookmark this article!

DiggBlinkbitsBlinkListsBlogLinesBlogmarksBuddymarksCiteULikeCo.mmentsDel.icio.usGraveeDiigo

FarkFeed Me LinksFurlGoogleLinkagogoma.gnoliaNetvouzNewsvinePropellerRawsugarTaggly

RedditRojoSimpySphinnSpurlSquidooStumbleUponTailrankTechnoratiSlashDotYahoo

There Are 9 Responses So Far. »

  1. Comment by Joey23 on 1 January 2008:

    I think they must be able to find a good option for them to get back up. Who knows, maybe paypal?

  2. Comment by Johnny2008 on 3 January 2008:

    Ouch, 30% lower is not good for them, especially since they heavily rely on advertisers to cover the costs. But I think they will probably make it up real soon as the advertisers will just have to cope with the issue and pay in whatever method FaceBook is willing to accept.

    This is also a blow to American Express as people will think twice about using them now if let’s say another big website/business decides to reject it too.

  3. Comment by ladyfiesta on 24 January 2008:

    Urh.. that is very very bad for facebook. I still wonder why AMEX terminated them. But oh well, facebook is not like the old facebook i used to love. And yeah, probably PayPal will help eliminate the problem. Hahaha.. ^_^ all the best to facebook and may they come back up like before!!

  4. Comment by Rick rolly on 26 January 2008:

    Oh oh surely facebook will join paypal for this. There is no other option except paypal. Good luck for facebook in future.

  5. Comment by exculiber on 2 February 2008:

    The termination could be justifiable. Facebook is a big entity. It must be a losing proposition from the end of AMEX.

  6. Comment by benz on 2 February 2008:

    This is a big slap to a big player like Facebook. It will survive. It could be cooking up something to respond to this concern. Let’s wait and see.

  7. Comment by blogsha on 24 February 2008:

    Why did facebook do this. I mean it will loose so many advertisers. But Paypal and facebook are friends so no problem !!

  8. Comment by ManilaGurL on 24 February 2008:

    Yes, go for Paypal! It is widely used anyway and as popular as Facebook. You better do something about that before it’s too late.

  9. Comment by Jamie on 24 February 2008:

    30% is a lot. Can amount to millions of dollar.They should use other more dedicated alternatives like MB and Paypal

Post a Response

 Subscribe in a reader or Subscribe by Email