Credit Card Authorization Form

Who May Need a Card Authorization Form

Consider a café or restaurant that provides lunch catering for a local business. Instead of charging the business for every delivery, which could be cumbersome, the café might ask the business to sign a credit card authorization. This streamlines the process by allowing the café to charge the business’s card for deliveries without negotiating payment methods or obtaining signatures for each transaction.

Another example is a company that leases expensive equipment. To protect themselves from potential damages, the leasing company may use a credit card authorization form to place a hold on the customer’s card every time they pay to lease an item, releasing the hold once the equipment is returned.

This form template suits many kinds of businesses. Some bill clients on a recurring basis for goods or services. Others take deposits for future purchases.

Why Use a Card Authorization Form?

One significant advantage of using a credit card authorization form is that it allows businesses to charge a customer’s credit card without the customer being physically present during the transaction. It also helps protect sellers from chargeback fraud. This happens when a buyer pays online with a card, then asks the card issuer for a chargeback after receiving the goods or services.

Chargebacks can pose a problem for businesses, as the disputed funds may be held, and resolving the issue can be time-consuming and require extensive paperwork.

A credit card authorization form document enables businesses to charge customers at regular or irregular intervals, providing legal permission. A signed document increases the chances of winning a dispute with the card issuer if any issues arise. Merchants, service providers, and organizations that accept credit card payments often use such forms.

For businesses that handle recurring payments, credit card authorization forms offer two key benefits:

• Reducing the risk of customers claiming they never consented to the charges
• Saving time by eliminating the need to enter credit card information for each payment

These forms streamline the payment process and offer additional protection for sellers and customers.

Types of Card Authorization Form Templates

Most businesses choose between two types of authorization. A one-time credit card authorization form covers a single charge, such as a deposit or a purchase. A recurring credit card authorization form covers payments that repeat on a schedule, such as a monthly service fee.

Anyone who prefers to pay from a bank account can use an ACH authorization form instead. The free template on this page covers both: you pick one-time or recurring, then choose a bank or card payment method.

What to Include in Card Authorization Forms

A complete form records who is paying, which card is used, what the cardholder agrees to, and when. Compare any form template against the list below before you send it out.

Typical credit card authorization forms will include:

1. Card details: Information about the card (debit or credit), account holder’s name, card number, end date, and billing address.
2. Card security code (CSC): A 3- or 4-digit security code is usually found on the back of the card (Visa, MasterCard, and Discover) or the front (American Express).
3. Seller’s details: The name and type of business or service provider.
4. Authorization statement: Specific language indicating that the customer authorizes the seller to charge the provided card for the transaction(s).
5. Authorization type: Clarify whether the authorization is for a one-time transaction or a recurring payment.
6. Description of goods or services: A brief description of the product(s) or service(s) being purchased, if applicable.
7. Transaction amount: The total amount the bank account holder authorizes the merchant to charge, if applicable.
8. Date of transaction(s): The date(s) when the transaction(s) will occur or the billing period, if applicable.
9. Customer’s name and signature: The cardholder’s printed name and signature confirm their agreement to the charges.
10. Date of authorization: The date when the customer signs the form.

Including these elements in a card authorization form ensures a robust document that complies with regulatory standards and protects against potential disputes.

How to Use Card Authorization Forms

Using the form takes three steps: collect the customer’s details, choose the authorization type, and get a signature. By following these steps, businesses can use credit card authorization forms to facilitate transactions and protect themselves from potential payment-related issues.

Step 1. Get the Customer’s and Account Information

Once the buyer and seller have agreed on the purchase terms, they can complete the written consent form. The form should contain enough information for the payment processor, typically including the customer’s name, card number, expiration date, and billing address.

Step 2. Choose the Type

The credit card authorization form should indicate whether the authorization is for a recurring basis, a one-time charge, or recurring transactions.

Step 3. Obtain the Signature of a Customer

Finally, have the customer sign the form to confirm their consent to the charges. Keep the signed form on file for your records and in case of any disputes.

How to Fill Out a Credit Card Authorization Form

The process of charging a credit card or customer’s bank account is fairly simple, especially if you use our website’s ready-made forms and instructions. You must download a free form and complete the information according to our simple instructions.

Step 1. Choose the Authorization Type

Select either the “Recurring Charge” or “One (1) Time Charge” option, depending on whether you want to authorize regularly scheduled monthly charges or a single charge.

Step 2. Complete the Authorization Details

For the chosen authorization type, fill in the required fields:

• Your full name
• The merchant’s name
• The charge amount
• The date (or day of each billing period for recurring charges)
• The frequency of the charge (e.g., week, month, etc., for recurring charges)
• A description of the goods or services being purchased

Step 3. Fill In Your Billing Information

Provide the necessary billing details, including:

• Billing address
• Phone number
• City, state, and zip code
• Email address

Step 4. Enter Your Payment Information

Choose either the Bank (ACH) or Credit Card option, and fill in the required fields for the customer’s or third party’s credit card information:

For Bank (ACH):

• Checking or Savings account
• Name on account
• Bank name
• Account number
• Routing number

For Credit Card:

• Visa, MasterCard, Amex, or Discover
• Cardholder name
• Account number
• Expiration date (month and year)
• CVV (card security code)

Step 5. Review the Terms and Sign the Form

Read the terms and conditions carefully. By signing the form, you agree to the outlined terms and authorize the specified charges. If you understand and agree with the terms, sign the form, and print your name. Also, provide the date of your signature.

Once the form is completed, submit and mail it to the merchant as required. Retain a copy for your records, and remember to notify the merchant in writing if you need to make changes or cancel the authorization.

Frequently Asked Questions

What is a card authorization form used for?

A business uses it to get a cardholder’s permission to charge a card. It works for:

• A single purchase
• A deposit for a future purchase
• Payments that repeat on a schedule

It also gives both sides a written record of what was agreed.

Can one form cover several payments?

Yes. Choose the recurring option, then list the amount, how often the charge happens, and the date or day of each billing period. For a single charge, choose the one-time option instead.

Do I fill in both the bank and the credit card sections?

No. Pick the Bank (ACH) option or the Credit Card option, then fill in only the fields for the one you chose.

Who keeps the signed form?

Both sides can keep a copy. The business files the signed original with its payment records, and the cardholder holds on to a copy in case a question comes up later.

Where can I get a free card authorization template?

Use the free template on this page. Click Create My Document, answer a few simple questions, and the form is ready in minutes. You can save your progress, finish on any device, then download and print it.

General information, not legal or tax advice.

Jennifer M. Settles

Author & Attorney

With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.