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Credit Card Authorization Form Template PDF Free Download
What is a credit card authorization form?
A credit card authorization form is a document, signed by a cardholder, that grants a merchant permission to charge their credit card for recurring payments during a period of time as written in that document.
The form is often used to give businesses the ongoing authority to charge the cardholder on a recurring basis whether that’s monthly, quarterly, or more sporadically.
Do credit card authorization forms help prevent chargeback abuse?
Chargebacks protect consumers from unauthorized transactions.
They occur when a customer disputes a charge from your business and asks the card issuer to reverse it.
But chargebacks can cause major issues for businesses, in large part because disputed funds are held from the business until the card issuer decides what to do.
Chargebacks are also time-consuming for businesses and involve a lot of paperwork.
A credit card authorization form is one way to protect yourself against chargebacks.
If you have a signed document from the cardholder that gives you permission to charge their card for services rendered, your chances of winning your case with the card issuer are much more likely and less complicated.
How to Accept a Payment
Use the following instructions to charge a credit card or bank account by obtaining the customer’s credentials via a paper form.
Step 1 – Point of Sale
When a buyer and seller have come to terms with the purchase of goods or services, the consent may begin to be filled in.
The following information will be required by the processor:
Credit/Debit Card
Cardholder’s Name
16-Digit Number
Expiration Date
Billing Address
Bank Account (ACH)
Account Holder’s Name
Address (of the Account Holder)
Routing Number
Account Number
Step 2 – One-Time Charge or Recurring
Enter whether the account will be charged for a one-time payment or continuing on a recurring basis.
Step 3 – Cardholder Signs
The cardholder must sign the authorization form.
If being used for hotel room authorization, the form may be signed by the cardholder and faxed to the lodging establishment.
Chargebacks and Disputes
Due to how easy it is to call a bank and report a fraudulent charge, there needs to be a way for merchants to minimize losses in order to protect their business.
Even though businesses can dispute a chargeback, it still has a negative effect. Most businesses are allowed a dispute range of no more than 1% to 3%.
If a business has a dispute ratio higher than the allowed rate, its payment processor will likely suspect the business to be practising shady ethics.
To keep the number of disputes down, many businesses will take the loss and refund the customer, which can be highly unfair to the business.
Any business that sees high or unfair disputes should adopt a credit card authorization form for customers to sign anytime they can.
Authorization Hold ($1)
A credit card authorization hold works a bit differently than an authorization form in that it temporarily draws funds from the customer’s account as a pending transaction and ensures that the customer has the funds in their account to complete the purchase.
The authorization hold can range from $1 to the full amount, depending on the situation.
This is a common practice that gas stations and hotels widely use to prevent fraud.
With websites such as Booking.com, they allow customers to reserve a hotel with no money down but after a specified date, the customer can no longer cancel without being charged for partial payment or the entire amount, which is also another example of an authorization hold.
| Author | – |
| Language | English |
| No. of Pages | 2 |
| PDF Size | 1 MB |
| Category | Form |
| Source/Credits | eforms.com |
Credit Card Authorization Form Template PDF Free Download