What Is a Credit Authorization Form?
A Credit Authorization Form is a formal statement issued by an individual or organization to permit a third party - usually, a financial institution or a private lender - to have access to their credit card for upcoming transactions or to perform a background check on their financial records prior to issuing a loan.
- Credit Card Authorization Form.
Before any confidential information regarding the person or company's financial standing is revealed, it is necessary to fill out a document that confirms the readiness to disclose these particulars and describes the authorization.
Credit Authorization Form Template Types
- ACH Authorization Form. In case you have to make regular payments to a creditor or lender, you may prepare this statement to confirm your willingness to let the other party receive payments from you on a weekly or monthly basis;
- Credit Card Authorization Form. Use this template to let another individual or organization use your credit card and access your bank records. Note that this form is typically offered by merchants and vendors that need the consent of a person whose name is written on the card to finalize a transaction;
- Credit Report Authorization Form. Often filled out by a potential borrower that wants to provide a lender with the snapshot of their credit history, this document will let the latter request information from financial institutions that have worked with the person or entity that wants to confirm its creditworthiness. Alternatively, the authorization can be completed by a prospective tenant to show the landlord or property manager their reliability before signing a lease;
- Payment Authorization Form. Whether the company wants to request a single payment or set up scheduled payments, a form like this makes sure the individual that signed it gave their full permission to conduct as many transactions as needed.
How to Make a Credit Card Authorization Form?
Although there is no uniform Credit Card Authorization Form template, usually it is brief and does not exceed more than one page when it is printed so keep it concise and do not ask the other party for more information than required by local or state laws for a single transaction or recurring payments. A Credit Card Authorization Form typically contains the following parts:
- Identification of the individual - they will indicate their full name, social security number, and date of birth.
- Name of the organization that will have access to a credit card in question. You should also add the phone number and e-mail address of the entity in case the client has any issues or concerns when completing the form.
- Credit card information - the card type, the name of the cardholder, the card number, and the expiration date.
- Specifics of the transaction - at a minimum, the form should list the services and goods the cardholder is paying for, their total price, and the date the payment must be completed. If the items must be paid for in installments, the form must reflect that to let the undersigned know all the terms of the agreement beforehand. To protect the interest of both parties, you may also add the authorization is valid for one-time use only.
- Signature of the person that grants their permission to use the credit card. It verifies the intention of the individual to grant consent for the transaction.
Once you have drafted the blank Credit Card Authorization Form, give it to an individual who signs it in person or authorizes the transaction online. Depending on the transaction and the mutual agreement of the parties, this document can also include a confidentiality clause that will forbid the disclosure of the transaction to any third parties or a notary seal that safeguards the merchant and the cardholder when the transaction involves large amounts of money.
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