Looking to download Credit Card Authorization Form?
The collection of customer payment is a headache when they are using a credit card. It is possible that bank may not clear the payment for good purchased or services rendered. The business is at a loss when payment is not received. In that case, it is recommended to use credit card authorization form.
Here in below, from the image, you can get an idea of a standard credit card authorization form aka credit card authority form.
Credit Card Authorization Form
The credit card authorization form is a life savior for everyone including customer, bank, and merchant. Basically, it is a legal document duly signed by the card holder to give permission to the retailer to charge the credit card for the purchase of goods or services. If the customer buys goods on regular basis, the business owner can use recurring credit card authorization form. Multiple payment options are available like monthly, quarterly, yearly or as agreed by customer.
Why Do We To Use A Credit Card Authorization Form?
The reason for using an authorization form is plenty. The most common instance is when merchant have no access to the credit card when the purchase was made. Otherwise, the business can ask for the form in following scenarios:
- An absence of Card Holder – When the customer has made the purchase but card holder is not physically present at the point of sale. For instance, it was an online transaction or done on phone. By using the form, the business can receive the payment for sure. When businesses don’t have a physical point of sale, they must utilize authorization forms to stay out of the trouble.
- Billing Is Due – The businesses widely use credit card authorization form when customer’s card is not charged and sale becomes pending. This trick is usually used by rental services and hotels where the initial payment may be adjusted as per the actual incurred cost. Sometimes, the ordered product is out of stock and transaction has been made pending against the credit card. Here, the business can use authorization form to keep the sale safe.
- Recurring Transactions – The customers have to submit card authorization forms when the transaction is made on a recurring basis. For instance, the subscription based services like Netflix where the business can charge the credit per month automatically.
Benefits Of Using Credit Card Authorization Forms
As a business owner you must use payment authorization form for following reasons:
As mentioned before, this form saves everyone from hassle. Getting and processing the customer’s payment information is a tedious task both for business & bank. Instead of filling countless forms, you can use this single document for all future purchases from the same customer. This not improve the efficiency of business but also reduce the headache of documentation.
Gain Customer Trust
The consumer is not foolish enough to share credit card information with anyone. You cannot get it on an ordinary piece of paper. In order to gain the trust of the customer, you need to get a well-designed credit card authorization form which represents your professionals and commitment towards documentation of customer’s information.
Avoids Fraudulent Activity
Security concerns are high when a purchase is made using a credit card. The customer may go for a chargeback. Or card holder may report the bank for an unauthorized transaction to reverse the transaction. The situation can be daunting for the business owner. That’s why the retailers are always asked to get customer signed the authorization form. This way, you can save yourself from fraudulent activity being a business owner.
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What To Include In Credit Card Authorization Form
No matter which type of form you are using, it is mandatory to include business details like name, address, and contact number. The form must have fields for the following information too:
- Cardholder’s Details – Name, contact details, and billing address.
- Credit Card Details – Type of card (Visa or Mastercard), credit card number, CVV security code, and expiry date.
- Authorization Statement – A declaration to be signed by the customer for giving permission to the business for charging the credit card for the purchase made by the customer.
- Cardholder’s Signature – You must ask the customer to sign the form. Don’t forget to add the date for validation.
For ongoing transactions, the recurring authorization card should be used. In that case, following additional information should be added in the form:
- Amount of transaction
- Frequency of transactions and charges
- Time period for the granted permission
Information asked in a Credit Card Authorization Form
Basic information: There is some basic info related to your personal snippet are asked to fill by the applicant himself/ herself. These are “Name”, “Address” and type of credit card you want to get along with the credit card no (in case if you already have a preapproved credit card).
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Another part of the form asks to fill some authorization list like “auto debit” option from your account in the bank. There is an option of authorizing the bank to charge the billed amount directly from the savings or current/ corporate account.
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Credit Card Authorization Form Template
Credit Card Authorization Form PDF or Credit Card Authorization Form Template Word
Special Note: you need to submit resolution document on the company’s letter head in case you are authorizing the bank to “auto debit” from the corporate account.
A hack: Don’t let bank to auto debit your billed amount from your account directly. Because if in case you are going through cash shortage, some cash is your bank can save you. Credit card bill can wait for 30- 45 days after billing cycle is completed. It’s enough to recover from a sudden cash shortage.
A space for specimen signature is also provided there so that bank can validate your signature and get the authorization to do all the tasks you are authorizing it to do.