If you are a seller accepting credit card as one of the payment modes from your customers, then you should know about credit card authorization forms.
There are times when the buyer tries to make the payment even though the credit card is not physically present and that is when the authorization form comes into the picture.
The purpose of this charge form is to enable the buyer to grant permission to the seller to charge the credit card either one-time or recurring as per the terms and conditions agreed mutually in the document.
This form protects the seller from any chargebacks.
What is even important is the format you follow to get authorization. It has to look professional and convey all the essential terms between the parties.
Many sellers fail to create professional charge documents. If you are the one too, then you should take a look at these templates that are printable, customizable and professional.
Free Download Credit Card Authorization Form Templates in Word & PDF
For Recurring Business Payments
If the association between the seller/business and the buyer is lasting for a specific period of time, then it is important to use the form that states ‘recurring payment’.
The form should typically contain the following points:
- Times/dates when the buyer/customer will be charged i.e. payments dates.
- The exact one time amount/recurring payments to be charged by the business to the customer
- The condition when either of the parties wanted to foreclose the service(charge) payments
For Employees’ Payment
We commonly use credit cards to complete transactions in the merchant’s portal.
However, this Credit Card Authorization form needs to be given for employees as well. This is a less known instance. Employees are issued corporate credit card and the company tries to establish terms and conditions in maintaining or using the card.
Yet, the Credit Card Authorization form is important to levy any charges for bills paid by the employee using the card.
Just because it is issued by the company, the privacy of an employee should not be affected.
Hotels commonly stock payment authorization forms to issue to their clients/guests whenever they make a booking.
Here are a few things to be mandatory included in the payment authorization form meant for hotels:
- Complete information about the stay – dates, duration, time of check-in and check out, room tariff, payment, other services availed
- Payment Credit card information – cardholder name, number, billing address, type, bank name and phone number of the holder
- Authorization section – Statements mentioning how the details will be used along with spaces for the signature of the hotel manager and the guest
For Travel Agency
Similar to hotels, travel agencies charge and accept different modes of payment.
Businesses tend to establish a long-term relationship with the travel agencies to arrange itinerary and trips for their employees.
As a result, it is a recurring charge transaction and it is important for the agency to have authorization forms that are applicable for varied durations.
These forms will have to be as detailed as mentioned in the previous section.
Irrespective of the mode of transport, the agency has to maintain the authorization form just like they have to maintain a bill of sale template & business forms.
Every time there is a charge incurred, it is essential to notify the client about the same either via email or post and this ensures trust and professionalism.
For One-time Use
We have adequately discussed instances when the seller needs to charge the buyer on a recurrent basis. Consequently, this is not the case at all times as sometimes, it could be a one-time association.
The outlook is similar to the recurrent charge authorization form.
Yet, it is important to tell the buyer how the information will be protected after usage. It is also appropriate to refer to clauses on privacy and confidentiality of private data belonging to the buyer in a transaction.
The local state law has to be referred and the clause can be mentioned under the terms and conditions of the contract.
Here are some sample business forms:-
Benefits of Using a Template
An authorization form with sign is useful for both – buyer and seller for Credit Card Authorization.
From the buyer’s perspective, it allows the buyer to penalize the seller if the information is misused or additional charges are levied.
On the other hand, sellers enjoy the following benefits by using these business forms:
- Getting sign on the Credit Card authorization from the customers indicates trust between the parties – customers and the business.
- This act can enhance the relationship and professionalism prevailing between both the parties i.e. the customers and sellers.
- It is used to refer at a later stage when the bank has denied settlement or when the buyer has caused problems.
- Required funds do not experience delays to reach the business/seller and the business never gets hampered.
For any seller who is engaged in credit card transactions, these Credit Card Authorization forms are useful.
Choose the Credit Card Authorization template you like, free download it, customize the terms based on your business activities and begin using it in your business.
The key to maximize the usage is to maintain records efficiently so they are accessible whenever you need.