Payment Authorization Form FAQs
1) What are the main types of payment authorization forms?
There are two main types of payment authorization forms. The first is a one-time payment authorization form, which is a form or document a customer signs to authorize a merchant to charge their credit card for a one-time purchase of a product or service.
A recurring credit card authorization form, on the other hand, is a form or document a customer signs to authorize recurring payments for products or services during a set period of time or on an ongoing basis. This allows merchants to charge a customer in recurring installments — whether that’s monthly, quarterly, or even yearly.
2) What are the subtypes of payment authorization forms?
Nowadays, there are payment authorization forms for just about anything you can purchase, but typically they’re used for larger purchases, like airline tickets, hotel stays, business expenses, etc. There are subtypes of authorization forms for credit cards, wire transfers, direct deposits, and mobile payments.
3) What information is typically required on a payment authorization form?
There are several important bases you’ll need to cover on a payment authorization form. Be sure to include fields for the following:
- Identifying information about both the purchaser and the merchant: name, address, phone number, etc.
- The customer’s bank account or credit card information — such as a routing number, account number, and bank name — followed by any necessary security information, such as a social security number and driver’s license number
- A checkbox or other way for the customer to authorize and confirm the terms of payment
- If needed, a space for the customer’s signature
4) Can a payment authorization form be used for recurring payments?
Yes — in fact, this is one of the main uses of a payment authorization form! This type of form gives a merchant permission to charge a customer’s credit card, debit card, or bank account on an ongoing basis, such as for memberships or payment subscriptions.
Under this type of agreement, the merchant will continue to charge the customer at an agreed-upon schedule until either party cancels it. This eliminates hassle on both sides — the customer won’t have to go out of their way to pay for something like a gym membership every month, and the merchant won’t have to repeatedly ask them for payments.
5) What are the benefits of using a payment authorization template?
Payment authorization forms are a necessity for any merchant offering products or services. They cover the legal bases associated with online payments by obtaining customer approval, which means that if the customer disputes a charge or a credit card provider issues a chargeback, the business will have evidence that the customer authorized the charge. These authorizations also cut down on busywork for accounting departments by allowing them to auto-charge customers instead of reaching out for payments time and time again.
By using a template, you can create a custom payment authorization form in minutes — all without coding. Plus, you can save your form template and reuse it as many times as you need.
