Why American Express Purchases Won’t Require Your Signature Any More

Advertisement

American Express Company (NYSE:AXP) announced that its purchases on credit cards will no longer require signatures next year.

American ExpressAs of April 2018, the company said that customers using its credit cards will be able to complete their transaction smoothly without having to sign off on their purchases. The move comes due to the fact that fraud practices have become so advanced that signatures no longer fight fraud in an effective manner.

Jaromir Divilek, an executive VP at American Express, added that the changes come as the company is implementing better fraud practices, including progress in contactless payments due to how popular online shopping has become recently.

Divilek added that the use of “advanced machine learning algorithms” is a more efficient way of combating fraud than a signature is. The elimination of signatures through American Express credit cards will take place beyond the U.S. as the rest of the globe will experience the change as well.

The company’s current policy says that customers don’t need to sign for purchases under $50 in the U.S., under $100 CAD in Canada, or under £30 in the UK. Other companies such as Discover and Mastercard have ridded themselves of signatures on credit card payments as well.

It’s looking like newer technologies will make signatures obsolete in the future, much like how chip cards help to protect payments better than swiping technology.

AXP stock gained 0.4% Monday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/12/american-express-company-axp-2/.

©2024 InvestorPlace Media, LLC