American Express (Amex) requires additional recipient data to comply with their Level 2 (L2) data requirements. This includes collecting information such as email, phone number, address of the recipient except for rent payments, which are exempt from these requirements.The primary reasons for collecting this data are:
Know Your Business (KYB): Amex uses this information to verify the identity and legitimacy of the businesses involved in the transaction, helping to maintain the integrity of their payment system.
Chargeback Risk Management: The data helps Amex assess and manage the risk of chargebacks. If a recipient is identified as having a high chargeback risk, Amex may review the data provided to make informed decisions regarding payment authorizations.In cases where potential risks are identified, Amex may take action, such as blocking card usage, to prevent fraudulent activities.
Why this data is required only for Amex payments and not for VISA and MasterCard?
Each card issuer has different requirements and policies regarding transaction data. Amex has specific Level 2 data requirements that are not applicable to VISA or MasterCard.