There are many famous payment providers operating on a global scale, but few match the brand presence of American Express. Also known as AMEX, this US payment processor was founded in 1850 and has since gone on to offer financial services to around 140 million people worldwide.
The company issues its own credit, debit, and charge cards. In the modern world, one of the most popular uses for American Express is buying things online. But what kinds of things do we use AMEX for online, what benefits does it offer, and how has it changed online transactions?
What sorts of things can you use AMEX for online?
In truth, it’s possible to use AMEX to pay for a wide variety of goods, services, and products online. One of the best examples is using it to play casino games virtually. There are many safe AMEX casinos on the internet now that allow you to use your American Express card to deposit and withdraw cash to play with.
Heading online for some retail therapy is also possible because this card is widely accepted at e-commerce stores globally. This makes it a convenient way to pick up some new clothes, the latest home gadget, or a new laptop! AMEX can also be used to pay for services online, such as paying a company directly on their website to landscape your garden.
Although these are only a few of the ways AMEX can be used to pay for things online, it shows just how flexible it is as a payment solution.
What are the benefits of using American Express for online payments?
AMEX has become a popular way to make online transactions for the benefits it offers users. Let’s take a closer look at some of the most important ones below:
- Ultra-secure
- Quick transaction speeds
- Superb customer support
- Accepted globally at numerous websites/online stores
- Well-established payment brand
The above shows that AMEX represents a safe and trusted way to make online purchases. Cybercrime is a significant concern for anyone who uses the internet, making it crucial to stay safe when connected. This includes everything from avoiding Switch 2 fraud for gamers to using robust payment solutions like American Express for digital transactions.
What cons does AMEX have for online payments?
Although American Express has several advantages in this regard, it does have a few drawbacks. It is essential to understand these pain points before using this payment option, so you have the full picture to work from.
The one that stands out most is the annual fee charged for using an AMEX debit or credit card. This is a little different from a standard bank card and something which can be a major turn-off.
The other major drawback is relatively high processing fees for merchants. This can range from 2.2% to 3.3% on each transaction, with additional fees applied on top of that. For this reason, some businesses don’t accept AMEX because they feel it’s too expensive compared to major rivals.
How has AMEX changed digital transactions?
American Express has been around for a long time and has played a significant role in the development of online transactions. This is not a surprise when you consider their status as a top payment provider and their proven ability to innovate.
One very good example of this is their use of Click to Pay and tokenization within online transactions.
AMEX’s EMV Click to Pay tech has reduced the need to enter card details manually when shopping online and brought a faster checkout experience to digital shoppers. Tokenization is used within this system to replace card data, making transactions more secure. This, in turn, has made paying for things online much safer.
The company has also helped make online transactions more secure by utilizing biometric security features. The SafeKey system is one example and uses facial/fingerprint data during the checkout process. This has led to other online payment providers developing similar technology to handle online payments more securely.
How else has AMEX changed digital payments?
Another innovation from AMEX, which has changed the online transaction space, is enhanced authorization API tech. This enables merchants who accept AMEX to share transaction data with the company.
The information gained is then analyzed in-house to identify transactions that may be potentially fraudulent. This not only helps combat fraud in online payments, but it also enhances the acceptance of genuine purchases online.
In certain territories where AMEX is accepted, open banking technology is leading to faster payments directly from customers’ bank accounts. This enables bank transfers to be made in real-time and transactions with this method to be processed a lot quicker than usual.
As a result, it’s helping to redefine how bank transfers work for online payments and how fast they can be processed. It also shows just how the latest innovations are influencing how we handle our finances online, from faster payments to using digital tech to manage your money.
AMEX challenges Visa/Mastercard dominance
The last major way AMEX is changing online transactions is the challenge it’s presenting to the Visa/Mastercard dominance of the sector. This is not an easy task, considering Visa and Mastercard’s market share of the global debit and credit card market.
Despite this, AMEX has made consistent inroads over time and has become a payment option that more merchants online accept.
This is helping to bring more choice to consumers in terms of how to pay for goods/services online and how to make online payments generally. By giving people more options, the company is positively disrupting the hold Visa/Mastercard has enjoyed previously.
Digital payments are changing due to AMEX
Increasingly, more of us are turning to the internet to relax, shop, and find local services. This has made online transactions a familiar part of daily life and something that we can no longer do without.
American Express is a major name in digital payments and a financial service company with a long history behind it. Its innovative approach to handling digital transactions is well-known and is helping change how we buy things online.
