What is a credit card authorization form?

What is a credit card authorization form?

A credit card authorization form is a document that grants a business the authority to charge a customer's credit card without the buyer being physically present.

Its primary purposes are twofold:

• It enables businesses to securely process and accept payments when the customer is not physically present, such as for phone or online orders.
• It can help prevent unwanted and fraudulent chargebacks. By obtaining the customer's consent and providing a record of the transaction details, this form serves as a protective measure for both the business and the customer, ensuring transparent and secure payment processing.

When to use a credit card authorization form in your business?

When is a good time to use credit card authorization forms in your business? Essentially, they’re a great tool when you need upfront payment or want to charge a customer's credit card for recurring payments or additional services.

Think about businesses offering subscription-based services, managing hotel reservations, organizing events, or any situation where pre-authorization or future charges might be necessary. Here’s a quick breakdown:

• Remote transactions. When the cardholder is not physically present during payment processing, such as for phone or online orders.
• Pre-authorization transactions. Certain industries, like car rentals and hotels, often use credit card authorization forms for pre-authorizing a specific amount on a customer's credit card, ensuring funds are available before providing goods or services.
• Subscription-based services. Businesses offering subscription-based services, such as monthly memberships or recurring billing.
• Event registrations. Events or conferences that require an upfront payment.
• Custom orders. For businesses fulfilling custom orders or providing specialized services with unique pricing.

What information should be included in a credit card authorization form?

Wondering how to create a credit card authorization form? It’s simple: A credit card authorization form typically includes the following general information to ensure a smooth transaction process:

• Cardholder's name
• Card number
• Card network
• Credit card expiration date
• Billing address
• Contact information
• Authorized amount
• Cardholder’s signature

Some credit card authorization forms may also require additional details like the CVV (Card Verification Value) code.