Can We Say Goodbye to Signatures?
Recently, American Express announced that signatures will no longer be required for credit card purchases globally beginning in April of 2018. This announcement comes after American Express has already stopped requiring U.S. merchants to collect signatures on purchases of less than $50 and different threshold amounts in other countries.
This change means American Express will be joining Discover and Mastercard which have also made similar changes. The American Express change is different though. The Discover and Mastercard changes are for U.S. transactions only whereas American Express is doing away with signature requirements globally.
According to American Express, fraud detection capabilities have advanced to the point that signatures are no longer necessary to fight fraud. In addition to the advancement of machine learning algorithms and other security-enhancement technologies, the increased popularity in online shopping and contactless payments has rendered the need for signatures unnecessary. American Express also expressed their desire to create a more consistent and faster checkout experience for shoppers.
Now that American Express has made this announcement, it leaves Visa as the only major U.S. card company that still requires signatures for U.S. transactions.
With the ongoing advancement of payment processing, the days of signatures are numbered. It’s another example of advancing technology making payment processing quicker and more secure.