What is a credit card authorization form?

Are you looking for a reliable and secure way to process credit card payments in your business? Enter credit card authorization forms.

This handy tool empowers businesses to obtain customer consent for charging their credit cards, ensuring smooth transactions and peace of mind for everyone involved.

In this article, we'll dive into the world of credit card authorization forms, exploring when and why you may use them in your business and the essential information to include.

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.