American Express launching big change for merchants
The move away from requiring signatures at the point-of-sale is taking a big step forward.
American Express announced it is eliminating the requirement for merchants to collect signatures from card holders for all purchase transactions at the POS in stores beginning in April 2018. The move, which applies globally to all American Express-accepting merchants, is designed to help provide a more consistent and simplified checkout experience, speed up the process of paying in store and help reduce merchants’ operating expenses associated with retaining signatures, the company said.
“The payments landscape has evolved to the point where we can now eliminate this pain point for our merchants,” said Jaromir Divilek, executive VP, global network business, American Express. “Our fraud capabilities have advanced so that signatures are no longer necessary to fight fraud. In addition, the majority of American Express transactions today already do not require a signature at the point of sale as a result of previous policy changes we made to help our merchants.” (American Express said it has already stopped requiring U.S. merchants to collect signatures on purchases of less than $50. The new move will apply to purchase transactions of all amounts.)
Mike Cook, senior VP and assistant treasurer at Walmart, was among those who applauded the move, saying it provides greater flexibility to retailers as they experiment with and adopt new technology to provide customers with a more convenient shopping experience.
“The introduction of our Walmart Pay mobile app has raised our customers’ expectations for being able to check out quickly and easily,” Cook said. “Having to sign a receipt can be a hassle for customers and is not necessary to prevent fraud at the point of sale. We’re pleased American Express has decided to eliminate its signature requirements, which will promote a more seamless shopping and checkout experience for our customers.”
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.
Once the change takes effect, merchants will still have the option to collect card members’ signatures at the POS if they choose to do so. They also must continue to collect signatures if they are required to do so by applicable law in a particular jurisdiction.
The Merchant Advisory Group, an organization that represents many large merchants on payments-related topics, welcomed the move.
“We commend American Express’ decision to eliminate signature requirements,” said Laura Townsend, senior VP of operations for the group. “This move will help merchants provide a quicker check-out experience for more customers by removing potential friction at the point-of-sale.”
American Express announced it is eliminating the requirement for merchants to collect signatures from card holders for all purchase transactions at the POS in stores beginning in April 2018. The move, which applies globally to all American Express-accepting merchants, is designed to help provide a more consistent and simplified checkout experience, speed up the process of paying in store and help reduce merchants’ operating expenses associated with retaining signatures, the company said.
“The payments landscape has evolved to the point where we can now eliminate this pain point for our merchants,” said Jaromir Divilek, executive VP, global network business, American Express. “Our fraud capabilities have advanced so that signatures are no longer necessary to fight fraud. In addition, the majority of American Express transactions today already do not require a signature at the point of sale as a result of previous policy changes we made to help our merchants.” (American Express said it has already stopped requiring U.S. merchants to collect signatures on purchases of less than $50. The new move will apply to purchase transactions of all amounts.)
Mike Cook, senior VP and assistant treasurer at Walmart, was among those who applauded the move, saying it provides greater flexibility to retailers as they experiment with and adopt new technology to provide customers with a more convenient shopping experience.
“The introduction of our Walmart Pay mobile app has raised our customers’ expectations for being able to check out quickly and easily,” Cook said. “Having to sign a receipt can be a hassle for customers and is not necessary to prevent fraud at the point of sale. We’re pleased American Express has decided to eliminate its signature requirements, which will promote a more seamless shopping and checkout experience for our customers.”
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.
Once the change takes effect, merchants will still have the option to collect card members’ signatures at the POS if they choose to do so. They also must continue to collect signatures if they are required to do so by applicable law in a particular jurisdiction.
The Merchant Advisory Group, an organization that represents many large merchants on payments-related topics, welcomed the move.
“We commend American Express’ decision to eliminate signature requirements,” said Laura Townsend, senior VP of operations for the group. “This move will help merchants provide a quicker check-out experience for more customers by removing potential friction at the point-of-sale.”