A credit card authorization form is a document that gives permission to merchants to charge the credit cardholder over a specific period of time that is mentioned in the document. The time periods may be monthly, quarterly, or at any other specified interval of time. The form is signed by the cardholder. The two main objectives of a credit card authorization form are:
- To save a lot of time for everyone
- To minimize the risk of customers saying that they have been charged when they shouldn’t have been
A credit card authorization form protects you from chargebacks. It increases your chances of winning the case if you have a signed document from the cardholder that grants you permission to charge them for any services provided.
The layout of a Credit Card Authorization Form
A credit card authorization form is not that complex. Usually, it contains:
- Cardholder’s credit card details
- Card Number
- Expiration date
- Card Type
- Name and signature of the cardholder
- Billing address of the cardholder
- Business details of the merchant
There are many places on the internet where you can get a free credit card authorization form template for free. You can use the template as it is or even edit it according to your requirements, as they can be downloaded in either word or PDF format.
These forms, however, are not legally required so ask your lawyer first before you start using one. Also, make sure that you keep the data of cardholders safe by securing the credit card authorization forms securely in a place that only has access to the concerned employees. Even after you stop charging, you should keep these forms stored for at least two or three months.