If you are owning a business, a credit card authorization form is an important thing you must have to be able to accept credit card payments. However, problems can arise if the credit card is not physically present. It will pose some risks that must be faced.
To begin with, a credit card authorization form is a legal document which is signed by the cardholder to give permission to the merchant to charge some fixed amount from their credit card in a certain time.
So the form is used when the cardholder is in the process of buying but cannot show a physical copy of the payment card. By using the credit card authorization form, the person will be able to make a transaction even though his or her credit card was not available at that time.
Credit card payments are indeed used by business people by charging fees to the cardholder. They charge fees on an ongoing basis with monthly, quarterly, or even intermittent amounts.
Speaking of the risks, one of them that could be happened is a chargeback. Chargeback happened when money from a merchant account was held by the bank because of a dispute on the transaction. Chargeback can cause big problems for running businesses.
As previously explained, a credit card authorization form is a legal document signed by the cardholder to give permission to charge certain fees.
When you will create a credit card authorization form, there are several aspects that must be included in the form. You can make it simple. Next is the aspects needed for the template:
1. Information from credit cards and holders
The first aspect is the most important to include. Information that must be written is the type of card, name on the card, card number, expiration date of the card and the security code. You need to include the billing address as well.
2. Information from business merchants
The information that must be included in your name, address, and business contact.
3. Authorization Statement
Don’t forget to include an authorization statement that applies to your business. It also includes the type of the transaction, you need to think of a good statement that will later afford the authorization to you.
4. The signing of the cardholder
A document will be valid if there is a signature from the document creator. Likewise with the credit card authorization form. The cardholder must sign it and include the date. Therefore, leave a little space for the cardholder to sign it.
Apart from when the cardholder is not physically present or he is present but the card is not physically present, you can use the credit card authorization form when making a credit card collection that can occur later. Also, use it also when giving continuous repetitive payment permissions.
Credit card authorization form is important for you to have if you are a business person. Make sure that you have the right and simple template when you need to use it when doing payment through credit card.