Free Credit Card Authorization Form

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What Is a Credit Card Authorization Form?

A Credit Card Authorization Form is a document that grants a business the right to charge a customer’s credit card for a period of time that’s specified within the form.

This gives you the ongoing ability to charge a cardholder recurrently on a monthly, quarterly, or yearly basis.

Using a Credit Card Authorization Form Is a common process when an individual subscribes to a service that renews on a periodic basis, such as rent or gym payments.

The document has to be filled in by the business in written format and is then signed by the cardholder.

Advantages of Using Credit Card Authorization Forms

Using a Credit Card Authorization Forms offers your business several distinct advantages. The most relevant of these are:

• Decreases fraud and chargebacks: A signed form shows that the cardholder gave permission for the payment.
• Minimizes errors: You’ll have a reliable record of the payment and terms that your customer agreed to.
• Builds consumer trust: Customers may feel more comfortable when they exactly what see that you have a proper payment process, and they know what they will pay.
• Increased payment efficiency: Having permission in place allows you to process payments faster and with less effort, especially for ongoing services.

Before writing your own Credit Card Authorization Form, it’s helpful to look over an example of this type of document.

This will familiarize you with how the document should look when completed and what you need to include.

If you take payments without the card present or want fewer payment issues, this form helps you stay protected and in control.

A Credit Card Authorization form is relatively straightforward. Merchants can use standardized templates to create these forms, but should have them reviewed by a qualified attorney to ensure compliance with applicable laws and regulations, including payment card industry standards and consumer protection laws.

Below are the terms that should typically be included in a credit card authorization form:

• Cardholder full legal name as shown on card
• Cardholder zip code from credit card billing address
• Credit card details including type of card, card number and expiration date
• Complete business information of the merchant, including legal business name (as registered with the state), physical business address, contact information, customer service contact details, and merchant identification number or tax identification number where applicable
• Authorization statement such as "I, [CUSTOMER NAME], authorize [MERCHANT] to charge my credit card above for agreed upon purchases. I understand that my information will be saved to file for future transactions on my account."
• Cancellation notice such as "You may cancel this authorization at any time by contacting us. This authorization will remain in effect until cancelled."
• Cardholder signature
• Date

A payment card transaction involves two separate steps.

The first of these is the authorization of the purchase. This doesn’t transfer funds to the merchant, but it notifies the business that the funds for a purchase exist. The merchant then contacts the cardholder’s bank with an authorization request.

If the authorization request is approved, the account will then be settled and the payment transferred. Merchants may also place an authorization hold on the cardholder's account, which temporarily reduces the customer’s available credit until the transaction is completed or the hold expires.

To accept payment with an authorization form, the following information will be required by the processor:

For a credit/debit card authorization:

• Cardholder's Name as shown on the card
• 16 Digit Number
• Expiration Date
• Billing Address with Zip Code

For a bank account (ACH) authorization:

• Account Holder’s Name
• Address (of the Account Holder)
• Routing Number
• Account Number
• Type of Account (Checking vs Savings)

There are many different types of credit card authorization templates depending on the specific business and context in question. Read on to learn which type makes the most sense for your situation.

Standard credit card authorization form

This is the most basic type of authorization form. It is a standard template that is accepted universally and can be used for different types of purchases. It requires essential information for most credit card authorizations.

One-time credit card authorization payment form

This template should be used for payments that will only happen once. This is usually a shorter and easier template to fill in.

Recurring payment credit card authorization

This type of Credit Card Authorization should be used when charging a recurring payment to a cardholder. The form includes details about the frequency and amount of each of the charges and requires amendment if any details change.

Hotel credit card authorization

A hotel Credit Card Authorization form is used for guests using a third party’s credit card. This card will be used for all necessary payments to enable them to stay at the hotel. It requires the signature and authorization of the cardholder.

Airline credit card authorization

When buying an airline ticket through a paper form, an airline Credit Card Authorization form must be completed. By signing this form the passenger can pay the airline for their ticket on their or someone else’s behalf.

An automated clearing house (ACH) authorization is a payment giving permission to a business to charge a customer’s bank account for payment.

This form gives a signed agreement to charge a checking or savings account. Contrastingly, a credit card authorization gives permission to charge the credit card account.