American Express to eliminate signature requirement
Staff Writer |
American Express announced it is eliminating the requirement for merchants to collect Card Members’ signatures for all purchase transactions at the point of sale beginning in April 2018.
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The move, which applies globally to all American Express-accepting merchants, will help provide a more consistent and simplified checkout experience for merchants and Card Members in regions around the world, speed up the process of paying in store and help reduce merchants’ operating expenses associated with retaining signatures.
The need for signatures has declined around the world due to a number of advancements in the payments industry.
These include the growth of contactless payment options, including card-based and mobile tap-and-pay methods, the global adoption of EMV chip technology, and the continued expansion of online commerce.
American Express has also deployed advanced machine learning algorithms that allow for more precise detection of fraud while minimizing disruption of Card Members’ genuine spending.
The elimination of American Express’ signature requirements will apply to purchase transactions of all amounts at the point of sale.
American Express is the first payment network to announce this change globally, expanding previous policy changes it has made in various regions.
For example, American Express has already eliminated signature requirements for transactions at the checkout that are under $50 in the U.S., under $100 CAD in Canada, and under £30 in the U.K.
In regions outside the U.S. where signatures are already less common, this change can help provide a more consistent checkout experience for Card Members traveling from countries where signatures are more common.
Once this change takes effect in April 2018, merchants will still have the option to collect Card Members’ signatures at the point of sale if they choose to do so, and must continue to collect signatures if they are required to do so by applicable law in a particular jurisdiction. ■