Are You At Risk By Not Using Credit Card Authorization Forms?

The credit card authorization form is used to processsystem then verifies the validity of the credit card
credit card purchases made when the credit cardaccount, expiration date and amount of money in the
holder does not present the credit card physically ataccount before proceeding further. The concerned
the point of sale. The credit card holder may takebank then sends out approval or declination along with
advantage of making purchases even if he or shea credit card authorization number that is encrypted
does is not in physical possession of the card whileand forwards it over the Internet to the agency's
making the purchase. This document is a usefulInternet application. If the transaction is approved the
substitute for the credit card as it obtains all thefunds needed are set aside and the whole process
relevant information from the card holder and protectspasses off smoothly with the issuing bank depositing
the seller by documenting the credit card authorization.the funds with the seller.
The seller will generally expedite the purchase afterWhat does the credit card authorization form contain?
receiving the information requested in the credit cardTypically, a credit card authorization form contains all
authorization form.the relevant information required to process the card
A credit card authorization form needs to beholder's request to purchase an item through using a
completed by the credit card user to verify funds andcredit card. Most companies request customers to fill
make sure that the user has sufficient funds availableout a credit card authorization form and then fax it to
to cover the transaction. Credit card authorization istheir address, before completing the transaction. It
the start of the settlement process for obtainingshould contain billing information, credit card information,
approval for all credit card purchases. In order tothe address for the card holder, and a security code
process the request for credit card authorization, ato prevent credit card fraud. The security code is a 3
few simple steps need to be followed to protect bothor 4 digit code, usually at the back of the credit card. If
buyer and seller.someone fraudulently obtains your credit card number,
When a credit card is swiped at a point of salethe security code ensures that the person also is in
terminal, all information relating to that card is obtainedpossession of the credit card, thus minimizing the risk
immediately. Following this, a credit card authorizationof credit card fraud.
form request containing information about the card asThe Credit Card Authorization form, once filled out,
well as the transaction is sent to the credit cardenables collection of information by the credit card
company. Another method of sending this informationcompany for use in case of any disputes. It also allows
is by sending the credit card and payment informationthe user to sign and enter into a transaction before
through the seller's payment device manually, whichreceiving the service requested.
creates risk for both buyer and seller; a risk that canThe form clearly spells out the charges to the user
be mitigated by using a signed credit card authorizationalong with terms of service. The credit card
form.authorization form enables the seller to obtain the
Whichever method is used, the credit cardpurchaser's signature and although this is not the same
authorization request is then transferred to theas having the credit card present for the transaction, it
concerned processor company who then forwards itdoes provide a reduction in risk and fees.
to the issuing bank. The credit card authorization