What Is a Credit Card Authorization Form Used for
A credit card authorization form may seem unnecessary, but it can be useful in combating fraud and chargebacks. This simple step can make the difference between a won or lost chargeback dispute. As an entrepreneur, you are exposed to certain risks if you accept credit card payments without the card being physically present. Create a credit card authorization form to protect your business. A credit card authorization form is a formal document that a customer signs to approve a charge on their credit card. Merchants use credit card authorization forms as documented evidence to validate credit card transactions. Essentially, it states that the cardholder accepts the fees set by the merchant. Credit card authorization forms are often used for recurring payments and non-existent card transactions. As mentioned above, this type of form is used when a company has to charge a customer without the credit card being present. As an entrepreneur, you take some risk when you overload a customer in this scenario. Typically, downloadable templates are available in a standard format. The one that is accepted everywhere.
So when you upload a template, you don`t have to worry about formulation and formatting errors. Credit card authorization forms are really helpful. You can`t go wrong using an official document for your business. Without it, you run the risk of putting your business at financial risk. A credit card authorization form essentially stores a card so you can process transactions without needing the customer`s permission every time. You can use credit card authorization forms on paper or in digital form. For personal transactions, such as signing up for a gym or a gym membership, it`s a good idea to have multiple printed copies available. Chargebacks protect consumers from unauthorized transactions.
They happen when a customer refuses a charge from your company and asks the card issuer to cancel it. A credit card authorization form allows a 3rd party to make a payment using a person`s written consent and credit card information. This can be either for a 1x fee or recurring (weekly, monthly, etc.). This is a common procedure when a person authorizes a subscription that is renewed monthly (for example. B a gym membership, monthly rent, etc.). See Billing information for basic information about the account holder. As the account holder, you must sign this document. We start with the “Billing Address” line.
Use this field to indicate the account holder`s building number, street name/number, and unit number listed on the account used to pay the merchant above. Use the empty field under the street you just entered to record the city, state, and zip code associated with the account holder`s billing address in the City, State, Zip Code field. Both the account holder`s phone number and email address must be registered in this area. Use the “Phone Number” and “Email” spaces to view this information. As explained above, one of the types of transactions for which an authorization form is used is recurring income. Using a credit card authorization form is one way to obtain authorization for these ongoing payments. There are also other ways to obtain this permission. You can create your own template or even download one from here. This template contains all the important information needed about the form. Then all you have to do is edit the information as needed. You can use these forms as is or modify them to specify your company name and logo, or a specific language associated with using the card.
You may want to talk to your lawyer about the type of language your business should include in the form. Whenever you accept credit card payments and the card is not present, there is some risk. To protect against this risk, including chargebacks, you can ask your customer to sign a document that authorizes you to charge their card continuously. This document is called a credit card authorization form. The last section, which requires information, consists of two fields: “Bank (ACH)” and “Credit Card”. Only one of these boxes must be filled in with information. Determine the account you want to use for payment, and then fill in the appropriate field. Do this so that the form meets the needs of your business and the types of transactions you make. Authorization forms for credit cards are very beneficial. Here are some of the benefits of using these documents: Credit card authorization forms are used for a variety of purposes and offer many benefits to the cardholder and the organization that collects the authorization. First, using these forms helps businesses make more efficient recurring or deferred payments. By simultaneously collecting customer and payment information, including card details, contact information, etc., the company can reduce round trips from emails or phone calls with its customers and seamlessly obtain the information needed to arrange online payments.
It helps automate an otherwise manual process, which means the company spends less time on paperwork and can spend more time working on growing their business. Another benefit from the company`s perspective is that it can use its signed credit card authorization forms to reduce and challenge chargebacks. If a customer tries to use chargebacks to scam a business, the company has already filed a pre-signed document stating that they have the right to charge the customer`s card as they did to legally protect them from losing their money. From the customer`s perspective, one of the benefits of signing a credit card authorization form can be the assurance that their cardholders` information is stored securely online, especially if the authorization is processed on JotForm, thus protecting cardholder data with PCI compliance, GDPR compliance, CCPA compliance, and other advanced security measures. With all these benefits in mind, a credit card authorization form is the way to go if you`re processing recurring or future payments for your customers or donors. There are a number of situations where you will need a credit card authorization form. This is important if you do not have access to the credit card when you process the transaction. Here are some scenarios where you can use such a template: Hotel Credit Card Authorization – To use a guest who will use the credit card of a third (3rd) party to stay in a hotel. .