Credit Card Payment Authorization Form
There is a degree of risk in taking payment by credit card but the card isn’t present. That’s why merchants always ask the customer to sign a document that gives them a permission to charge the credit card. This way, the merchants or sellers avoid the risk which includes chargebacks. We are talking about credit card authorization form.
What Is A Credit Card Payment Authorization Form?
A credit card authorization form refers to a legal document duly signed by the cardholder to give permission to seller or merchant to charge the credit card for the purchase. By using the form, the businesses or merchants get the permission to charge the credit card on a recurring basis. The payment can be charged monthly, quarterly or more sporadically.
Importance Of Credit Card Payment Authorization Form
Chargebacks are a protection against unauthorized transactions for consumers. This happens when the cardholder disputes a charge from the merchant and instruct the bank to reverse the transaction.
Although, chargeback protects the consumer but causes complications for businesses. Businesses cannot use the disputed funds unless bank decides what to do about the money. Moreover, chargebacks take too much time and paperwork to resolve the issue.
Businesses save themselves from chargebacks through credit card authorization forms. As this document grants permission to businesses to charge the credit card for purchases or services rendered. Disputes get resolved easily if cardholder had previously signed the authorization form.
How Does It Work?
Credit card authorization document comes handy for ongoing transactions (on file transactions or card, not present transactions). In the presence of form, the customers cannot impose that card was charged when it should not have been. This way, it saves everyone from the hassle.
Let’s take an example. Suppose you are running a catering service for office on daily basis. The customer has signed the authorization form on file. That means you have permission to charge the credit card of customer every time that office orders the food.
This form proves to be helpful for future transactions too. The merchants can rely on authorization form to charge the card for the advance of future purchases.
The rental services commonly used this form to tackle cases of default. They can hold the cards until the customer has returned the rented equipment or vehicle.
What To Add In A Credit Card Payment Authorization Form?
An authorization form is not a complicated document. A standard form contains following fields:
- Credit card information
- Name on card
- Card number
- Card type
- Expiration date
- Name and signature of the cardholder
- Billing address of cardholder
- Details about merchant’s business
Free Credit Card Payment Authorization Form Templates
Getting an authorization form is must if you run a business that allows credit card transactions. There is no need to hire somebody for designing the form. You can download any of the following forms and customize them according to your business.
Standard Credit Card Authorization Form
Recurring Credit Card Authorization Form
Company Credit Card Authorization Form
Blank Credit Card Authorization Form
One Time Credit Card Authorization Form
Choose the type that goes with your business, customize with the logo or watermark and use it for next credit card transaction.