What Is a Credit Card Authorization Form?

A credit card authorization form is a formal document where a cardholder grants a merchant explicit permission to charge their credit card for goods or services. This authorization is particularly relevant for transactions where the physical card is not present, such as purchases made online, over the phone, or via mail. It establishes a clear record of approval, safeguarding both consumers and businesses.

Understanding Credit Card Authorization Forms

Card-not-present (CNP) transactions, including online purchases, phone orders, or recurring payments, carry a higher risk of fraud and chargebacks compared to in-person transactions. Businesses use these forms to mitigate such risks by obtaining documented consent from the cardholder. This helps protect merchants against potential disputes or “friendly fraud.”

These forms are commonly used for various payment scenarios. One-time payments for larger purchases, like electronics or custom services, benefit from an authorization form for fraud protection. For recurring payments, such as subscriptions or installment plans, these forms establish ongoing authority to charge the card without needing repeated consent. Pre-authorizations, common in hotel stays or car rentals, use these forms to secure a temporary hold on funds.

Key Information Required on the Form

A credit card authorization form collects specific details for a valid transaction. The cardholder’s full name and billing address are required to verify identity and align with the card’s registered information, a key component of address verification services (AVS) used in CNP transactions. The form also asks for the credit card number, card type, and expiration date.

While the Card Verification Value (CVV) or security code is often requested, merchants are prohibited from storing this code after authorization due to Payment Card Industry Data Security Standard (PCI DSS) compliance. The authorized amount or specific payment terms, such as “up to $X” or “recurring monthly payment,” must be clearly stated. The form also includes the date of authorization and the cardholder’s signature, which serves as explicit consent for legal validation and chargeback defense.

Completing and Submitting the Authorization

When completing a credit card authorization form, cardholders should clearly write all requested information. Ensure names, addresses, and card numbers are legible and match their credit card account details. A clear and verifiable signature is necessary, as it signifies explicit consent. Omissions or errors can lead to payment decline.

Once completed, the form must be submitted to the merchant through secure channels. While email attachments may be accepted, they carry security risks if not encrypted. More secure options include online portals, encrypted email services, or traditional fax. After submission, the merchant processes the payment and retains the form as a record for chargeback defense. Cardholders should also keep a copy for their records.