As a business owner, you might accept payments via credit cards so it is very important to get the authorization forms filled by your customers specially in case when the card is not present physically as it might contain some risk. Now card protections have become easy and just ask the customer’s signature with details to authorize their cards. This shows that the customer is permitting you to charge from their card. This protects you from charge backs.
But, we understand that you are worried about how it has become easy? Yes, with the credit card authorization form. Follow this article to know what it is and how to use it in the best way. Also, feel free to download templates from here for free and make safe transactions. This will give confidence to your customers and your business will grow.
Credit Card Authorization Form Template Australia
The authorization form is like an authorized (official) document wherein the customer signs the form that permits the vendor to charge him a fixed amount for a given period.
Businesses use such form to charge the customer on the agreed interval of time that can be on a monthly, yearly or quarterly basis. These forms are used to avoid chargebacks due to the customer rejecting due to which the merchant has to payback the charged amount.
Businesses can face major problems due to chargebacks. As the business owner has to pay the amount if the cardholder raises any dispute. So authorization forms protect from these issues. Such events affect a lot of your time in doing paperwork to overcome these issues.
So its always suggested getting your customer authorization form signed before getting into any transaction. Then incase if your customer raises any dispute against you, the document can be presented on behalf of proof. Collect customer’s personal information and if needed make use of information.
Components/Parts of Credit Card Authorization Form
- Getting access to use the information
- Disclosing the information to get the service
- Deducting amount for customer’s accounts.
- Getting it transferred to the merchant business account.
Credit Card Authorization Form has other names that include
- Credit card authority
- Credit card consent form
How to Fill Up the Form
By signing the legal document the cardholder permits the merchant to collect the amount from their card. It is a legal document. Credit card access can be used for one or continuous charges from the card.
Keep this form simple and easy to understand while creating it. Some important elements to be included in the template includes the following.
- Cardholder details
It contains basic details such as the name of the cardholder, contact details, address, etc.
- Credit Card details
Ask for details such as card type like (Mastercard, Visa, etc), Expiry date, Credit card number, OTP, etc.
- Information about business
Mention the basic details about the business such as Name of the business, location and contact details.
- Authorization statement
Create a statement that matches your business and also includes the transaction type whether single or recurring.
- Cardholder signature
Include the space where the cardholder can sign and make the document valid for the transaction. Also include the date in it.
Uses of Authorization Form
- Customers pay you for the product or services which you provide them. There is no concern about non-payment.
- When there no credit card terminal or EFTPOS available
- It doesn’t need the physical presence of your business. You can save money as well as brand your business and reputation.
- You maintain a record of customers’ authorization details for the transaction to handle any circumstances. You can stop worrying about defaulters
- The customer gets details about their debit amount and interval. They feel confident about your service
Top 3 Benefits of using authorization template
Many customers prefer credit card payment so it’s very vital for the business to use authorization forms for credit cards because at times things may get complicated while handling customers’ online payment.
Make one on your own or simply download the ready one from here and just modify it according to your needs.
Get your form done according to the needs of your business. These forms are a must-have element for credit card transactions. The advantages of using this form are stated as follows.
The customer details about payments as well as other information are collected through this form rather them making them fill several forms. It will make easy for you to maintain records and reduce the space consumed to store documents in your office.
- Help to gain the trust
Proper format for collecting and storing information shows how professional you are which gains the trust and confidence towards your business. It instills among the customer that their payment details are safe with you.
- It helps to protect the business from fraud
This form safeguards you from becoming victims due to credit card frauds and misuse. Credit card payment is subject to risk. Having authorization forms reduces these risks and you feel confident when the customer signs the form.
Tips to remember while using Credit Card Authorization
You cannot be careless while dealing with an important document for your business. This may affect your business with major financial loss as well as security issues. Therefore make a note of the suggestions given below.
- Do not save the security code provided by the customer while doing transactions as it is in opposition to the rules of associations.
- If the data has to be stored, make sure it is safe. In case you fail to maintain the sensitive data there is a threat to the theft of identity which will create a great impact on your business.
- Once the transaction is processed, the next step is to send an mail about the sales transaction receipt to the customer followed by all details of the business and its product or services offered without fail.
- Along with that also include the cost and other charges if any.
- Also, mention the refund and cancellation.
- Don’t tell your customer to fax the form to you, rather guide them about your online payment portal which is safe to use. The page should include all the necessary details about the customers
- Provide a checkbox in your form so the customers can agree to the terms and conditions by clicking on it. Also, the cardholder can acknowledge the payment invoice.
- In the cases where the shipping and billing address is different, you can ask the customer to email documents individually which states his permission to ship at a different address. This situation normally occurs in the business transaction you just need to make sure that you have proper documentation that shows the authorization of the customer to ship the product or service to different addresses.
- Don’t bother your customers to courier you the details simply ask him to email you. By accepting the receipt of the form and sending you the code, the customer can acknowledge the transaction.
- The code can be presented as proof in case needed also make sure to have every detail written while handling authorization forms.
This is helpful when the situations are not under your control and you must appear in the court for the dispute by your customer. By having all the right documents filed with written commitments you will be able to defend yourself and overcome the situation.
PCI Compliant Credit Card Authorization Form
Payment Credit Industry Data Security Standard (PCI DSS)
PCI is the safety standard made by majorly operating credit card companies such as American Express, Mastercard, Visa, etc. The payment account security is taken care of by PCI complaint credit card throughout the process of the transaction.
4 levels of PCI compliance
- The vendors process almost 6 million Visa transactions every year regardless of any channel they accept for payment. The minimum requirement for Visa transactions by the merchant is that it may meet their Level 1 criteria to avoid risk.
- Even after accepting different channels for payment, Every merchant process 1 million to 6 millions transaction a year.
- Any dealer making a transaction of 20K to 1M Visa online business exchanges every year.
- Any shipper preparing less than 20K Visa online business exchanges every year, and all other traders although have different channels for payments handling up to 1M Visa exchanges every year.
Square Credit Card Authorization Form
Square being an online payment gateway helps you to process the transaction by accepting and debiting payments done via visa card by your customers. You may receive the payment immediately or after a particular period of time.
If you have linked your form to a square account, it makes easier for the customer to make online payments and buy the products or services staying on the same form. Also, it’s easy to track the order using the square dashboard. This form improves your business security.
Credit Card Authorization Form For Hotel
This form is used for the guests who do not have their card handy and want to access through card number and cardholder signature which is used for guest stay. In this, the cardholder can limit their expenses on their card such as food, minibar or extra offerings by the hotel. In case the form limits cross then the guest has to pay the overdue beyond the authorized amount by the cardholder.
- Are credit card authorization forms legal?
This form is considered a legal document. By signing the form, the cardholder gives authorization to the business to deduct the amount of the trade. The permission can be one time or recurring depending upon the transaction.
- What is a CC authorization form?
A credit card authorization form with the signature of the card owner granting permission to the merchant to deduct the charges for the agreed period stated in the document.
- How do credit card authorization forms work?
This process does not transfer the funds to the merchant account directly. The bank is intermediate. The merchant has to ask the issuers bank for the authorization code which confirms the payment done by the customer through debit or credit card.
- Why do we need a credit card authorization form?
The credit card authorization form makes sure that the customer has enough money in his card to fund the transaction he wishes to make, so to keep the merchant and buyer aware of the transaction history and to avoid any frauds.
- How long do pre-authorization hold last?
It may take 1 to 8 business days to make your account available with the funds again post-transaction. It totally depends on the bank’s policy and terms and conditions. Authorization validity will surely come into the bank again once the verification process is done. This may happen due to the technical issues in the server of the merchant’s bank or self bank or any other issues.
- What is a credit card authorization?
Whenever a customer makes a purchase using a credit card, the issuer receives the request to confirm that the card has enough funds and is valid. The approval in authorization verifies that the customer has an available limit in his account to make the transaction.
- What is authorized payment
When the merchant receives bank approval regarding the customer payment using debit or credit card is termed as an authorized transaction. It is an important element for the online payment process.
- What is the difference between credit card authentication and authorization
The validity of the credit card is checked through credit card authentication. Through authentication, the customers get permission to do the transaction. The code is entered to check whether the cardholder has sufficient funds for the transaction. Therefore authentication is the first step to check and authorization is the second step to confirm the transaction. Two-step validation checks to prevent any misuse.
- Can someone charge your credit card without authorization
The merchant doesn’t need to get the authorization form filled by you to charge every now and then when needed. He has your signature to get permission. But the merchant cannot charge your card without your permission. Your details are there still your consent is required. Stay stress-free!
- Does pre-authorization guarantee payment
The pre-authorization reviews about the services requested, eligibility of the payee. It is a safe step taken in advance to make payment. Although it does not guarantee payment.
- Can a pending transaction be declined
The card is not charged immediately after purchase, your transaction is put on the hold and the card processor confirms with the bank regarding the sufficient funds and validity of the card. The card processor checks whether you have put all the details correct such as your address, codes, etc. Incase if it finds that the information is not correct then your transaction will be declined. The transactions will not take place until the card processor sends the whole details as a final confirmation to the bank. There are chances for pending transactions to declined or approved depending on the scenario.
- What does it mean when your credit card is not authorized?
If you have an insufficient amount in your account your transaction is canceled. Sometimes there is also an issue from the merchant side, wherein he is not able to reach the bank due to technological issues. Check personally before you conclude as both the possibilities of fund insufficiency from your side and technology defect from the merchant side can lead to non-authorization.
- What does authorization only mean on a credit card?
Authorizations create an overdue in the cardholder’s account which has to be paid later at the given period of time. Short time credit is given to the customer which has to be settled in the given time.
- What is the authorization form?
Through authorization forms, the merchant gets the customer’s permission to provide their service. This will help credit card payment to happen without any hassles. Safe and secure transactions.
- What is the authorization request?
Whenever the cardholder tries to make a purchase the request is sent to the bank. The request is sent by the merchant bank to the issuer bank.
- How long does a company have to charge your debit card?
The normal claiming period is up to 6 months. It usually takes 10 days to return the funds set aside for spending. The money set aside by you is released when both the bank and you authorize payment. The bank will pay the retailer at the time of receiving the claim.
We are glad to provide you detailed information about credit card authorization. Time to time we request you to check Australian legal policies to use this form effectively. Feel free to download templates for free and take your business to the next level.
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