When you want your customer to pay with a credit card, you can ask for the authorization strictly online (or get them to swipe or tap the card in person) or back it up with a Credit Card Authorization Form. By asking your customer to read the terms and conditions on the form before signing, you are protecting your business against chargeback.
There are six types of authorization a Credit Card Authorization Form may include:
One-time: For making a single credit card payment (credit card number, expiration date, CCV code, and address of record).
Recurring: For a subscription service, usually on a weekly or monthly basis.
One-time ACH: A single payment via ACH transfer from a savings or checking account (routing and account numbers).
Recurring ACH: Multiple periodic payments with ACH transfer.
Airline: Used when buying air tickets in paper form.
Hotel: Needed when a hotel guest uses a 3rd party credit card to make a payment.
What Is a Credit Card Authorization Form?
A Credit Card Authorization Form allows merchants and businesses to charge for their goods and services without the cardholder's presence. By supplying their credit card information and signing the document, the cardholder authorizes the merchant to make a one-time charge or recurring charges. This form also serves as an additional layer of protection for the merchant against fraud and chargeback abuse.
Depending on the context and preferred usage, the Credit Card Authorization Form may also be known as:
Credit Card (ACH) Authorization Form
Authorization for Credit Card Transactions
Credit Card Payment Authorization Form
Credit Card Transactions Authorization
All merchants benefit from the use of Credit Card Authorization Forms. The most significant advantage is that it simplifies the transaction and makes it more secure at the same time. The customer does not have to be physically present to make the purchase, and you can make sure they have read all the terms and conditions before authorizing the charge.
With the authorization in hand, a seller can check if the credit card has enough available credit to pay for the transaction. This form also prevents fraud and protects businesses by requiring the CCV code, mailing address of record, and cardholder signature.
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The Credit Card Authorization Form is essential for all merchants. It allows you to charge credit cardholders and add a layer of protection. With 360 Legal Forms, you can create a document with everything needed to protect your business and enable a smooth money transfer.
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Your document will contain these fields for your customer to fill out:
Business or Consumer: Business or individual buyer.
Name: Full name of the company or individual.
Cardholder identity: Name and address of the cardholder.
Card information: The card number and expiration date (you can tell the card type from the first digit of the card number, 3 for AMEX, 4 – Visa, 5 – Mastercard, 6 – Discover).
Authorization type: Select Credit Card or ACH transfer (if applicable).
Payment type: Either a one-time charge or recurring.
Payment details: The purpose of the authorization.
Delivery method: How the product or service will be delivered.
One-time payment: A single charge, and that is it.
Recurring payment: Charged periodically, usually weekly or monthly. Recurring charges are typical for subscription services such as gym services, streaming services, and auto insurance payments.
ACH authorization: An ACH or Automated Clearing House transfer allows a merchant to electronically retrieve money from a bank account in the United States.
NSF fee: Only applicable to ACH, a Non-Sufficient Fund fee charged if the ACH transfer returns for NSF.
The Credit Card Authorization Form needs to be signed by the credit cardholder after it is filled out.
The credit cardholder should review the document and sign it, after which the merchant will verify if it is filled out correctly. Only the merchant must keep a copy of the document, but it may be a good idea for the cardholder to keep a copy too.
The Credit Card Authorization Form does not require notarization. It becomes legally binding after it is signed by the cardholder and submitted to the merchant.
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