Upgrade Iphone and AMEX and Apple Pay not working

I just bought iphone 16 and have added my Amex to my wallet and everything looks good and got confirmation email from Amex that we are all good to use apple pay. But when I try tonuse it the payment is declined, using physical cars works just fine though.

have erased and re-added the card, log out from Apple ID and logged in again and added the card.

according to Amex everything looks good and the issue should be with Apple!

I have 2 other cards (master cards) that both work with Apple Pay.