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Firstly, American Express charges higher swipe fees because it operates on a different business model from most other debit / credit card issuers (thus costs more for Valve to process).
Secondly, it's not a widely used card globally speaking. For example, whilst it's not unheard of, it's barely used (let alone accepted) in many European countries.
Compared to using the payment processing methods Steam already has, it seems unlikely it'll get accepted on Steam anytime soon. Not saying I dont sympathise with your predicament but fact is, from a business point of view, Visa, Mastercard and Paypal are globally used and accepted. Amex...not so much.
Maybe you'll have to rely on buying pre paid Steam cards or like the other poster said, using Paypal and placing funds in there via your Amex card.
Nope Paypal is also not accepted through the Indian Steam store although Paypal is available in India.
Look I can buy games on my Xbox One and Windows Store with my Amex.Purchase apps and in-app items on the iOS App store where the value of the purchases are really less but Apple is able to accept these cards.
So there is no reason why Amex can‘t be added on Steam.
I was wrong. Turns out is accepted on Steam...on a country by country basis and for certain AMEX card types. A quick google search shows this.
If it;s pre paids you are using...that might be the problem <shrug>. Eitherway...Speak to steam support if you thinks it;s wrong. Not much you'll get from these forums.