Did you know that around 191 million people use credit cards in the US alone? And half of them have at least 2 credit card accounts, and 13% have at least 5 cards. According to a survey by Statista,the average individual is believed to have made almost 186 credit card transactions annually. And out of these, around 15% is the failure rate.
Hence, there is no doubt that credit cards provide a convenient and secure way to pay bills, make purchases, and manage daily expenses. However, a question arises: Are credit card transactions 100% authorized and secure?
In the field of business travel, ensuring the security of credit cards is very crucial. This is exactly where a credit card authorization form (cc auth form) comes into the picture. With so many frauds taking place with credit cards every year, many employees and hotels across the globe have begun using cc authorization forms. These forms help businesses and users secure corporate card information and payment, especially when the credit card cannot be physically presented.
Understanding Credit Card Authorization Form Template
A credit card authorization form is a formal document in which a cardholder (customer) gives the merchant (business) permission to charge their credit card a certain amount. This form acts as a security guard for both the businesses and the cardholders, providing them with a routine way to check for potential fraud before a transaction.
This provides an extra layer of protection against unauthorized transactions. Once the cardholder has signed the form, the business can charge their users monthly, quarterly, or yearly. Typically, the credit card authorization form template includes fields for essential details such as:
- The cardholder’s name
- Credit card number
- Expiration date
- Billing address
- Authorization statement
- Contact information
The form also has sections for transactions, such as:
- The amount to be charged
- The purpose of the charge
- One-time/recurring payment
What is a Hotel Credit Card Authorization Form?
A hotel credit card authorization form is a formal document that allows a hotel to charge a credit card not owned by the guest. For instance, if an employee stays at a hotel, the employer will pay for the employee instead of the employee paying for himself/herself.
Using a hotel credit card form, the customer authorizes the card to be charged throughout their stay by signing the form. This gives the hotel consent from the cardholder and allows them to protect themselves from fraudulent transactions, ensuring a smooth transaction process for the guests.
What are the Components of a Hotel Credit Card Authorization Form?
Storing the right information in the authorization form is very important. Some of the crucial information that needs to be included are:
Basic guest information: Name of the guest, guest’s employer, contact number, date of birth, email address, duration of stay, etc
Credit card information: Credit card number, cardholder’s name, expiration date, CVV, bank name, etc.
Billing information of cardholder: Cardholder’s name, credit card number, company name, city, state, country, etc
Authorization details: Amount to be charged for the credit card and any extra amount charged for additional expenditures.
Signature and acknowledgment: A separate section at the bottom of the form for the cardholder to sign and a tick box to acknowledge the information provided is accurate.
How to Spot Fraud on Your Hotel CC Authorization Form?
Hotel cc authorization forms hold a lot of sensitive information, from the guest’s contact details to the credit card information. Hence, it becomes easier for hackers to access this information if the forms are not encrypted. And this breach can cost you millions of dollars. You can avoid hotel credit card authorization form fraud by the following methods:
- Hackers usually take around 24-48 hours to access the data. Therefore, most hotels do not accept payments on the same day. Although that is not an appropriate solution, you can do this:
- Take an advance payment for the payment. You can take either half the amount or the full amount. If any transaction is made using a fake card, the customer will be notified through a message for the charge and will call you to clarify.
- Keep a second form of payment ready. If the first one fails and is subject to chargeback, the second one is available. You can use this for same-day reservations and bookings.
- Keep a close eye on the information entered. Look closely at vague, mismatched, or incorrect information, such as phone numbers. For example: a zero (0) can be replaced with an ‘O’. You can verify your details online.
- If the cardholder’s and guest’s names provided are different, then even the contact numbers must be different.
- Do not accept the credit card if the address for the card and authorization are completely different. This is a major sign of a potential fraud!
Challenges in Credit Card Authorization Form Processing
While cc authorization forms have many benefits, they also have drawbacks. Some of the challenges with such authorization forms are:
- They are expensive: You might not realize it, but there are often hidden fees associated with CC authorization forms. This makes it more costly to manually enter your credit card details in the Point of Sale section instead of making an online payment.
- Time-consuming Process: Besides being overpriced, you must manually input all the details in the form to charge the card. While some hotels do not provide the form online, you may have to go there to collect it and sign it physically.
- Unsatisfactory Experience for Guests: In today’s world, online bookings and payments are common. However, if guests are required to print the form or go physically to the hotel to collect the forms, they may feel it is too much of a task.
- Non-compliance Fees: The Payment Card Industry Security Standards Council (PCI-SSC) has established secure and encrypted methods for storing and processing these forms. If a hotel has not thoroughly checked the credit card authorization form and has used it to save customers’ information, it can be subject to heavy non-compliant fines. You can be fined as high as $500,000 per incident for non-compliance.
Why do you need a Credit Card Authorization Form?
A cc authorization form provides a multitude of security benefits for both businesses and cardholders. These benefits are very essential in securing the financial information and preventing any kind of fraud. Some of the key security benefits are:
- Fraud Prevention: When a cardholder or customer signs a credit card authorization form, companies can verify whether he/she agrees to the charge, thus reducing the risk of any credit card transaction.
- Chargeback Protection: A signed cc authorization form serves as proof that the cardholder has approved the transaction.
- Data Security Compliance: If a cc authorization form is managed and handled properly, the businesses comply with the Payment Card Industry Data Security Standards (PCI DSS).
- Clear Transaction Records: The authorization forms act as records for all financial transactions with the customer’s consent.
- Limitation of Unauthorized Access: Businesses can leverage these forms to restrict access to sensitive information. This ensures that only authorized personnel can access the data. Thus reducing any risk associated with internal fraud.
- Customer Trust: Businesses can gain customers’ trust by using credit card authorization forms. These forms show that your business takes the security of financial transactions seriously. Hence, customers will always prioritize you over other businesses.
Suggested Read:
The Importance of Corporate Credit Card Reconciliation
6 Different Types of Credit Card Authorization Templates
Various types of cc authorization form templates are designed according to specific business requirements.
The most commonly used ones are mentioned below:
1. Standard Credit Card Authorization Form
A standard credit card authorization form is one of the most widely and commonly used forms. It has a standard template that is used worldwide and can be used for various types of transactions.
2. One-Time Credit Card Authorization Payment Form
A one-time credit card authorization form is generally used when the credit card transaction happens only once. It is very short and easy to fill in.
3. Recurring Payment Credit Card Authorization Form
This type of cc authorization is used when a customer is charged for a recurring payment. The form includes all details about the number of charges and the amount of each charge.
4. Hotel Credit Card Authorization Form
A hotel credit card form is typically used when the guests’ employer pays for the trip using a corporate credit card. The card is used for all the payments allowing guests to stay in the hotel.
5. Airline Credit Card Authorization Form
An airline authorization form must be completed when buying an airline ticket through a form. After signing the form, the traveler can make the airline ticket payment.
6. Group Credit Card Form Authorization Form
A credit card authorization form for group booking is used when multiple individuals from a group travel together and are responsible for the charges on the credit card. This is generally used for group travel, events, or travel arrangements.
Also Read:
Top 5 Hotel Payment Processing Challenges
Let itilite Help You with the Credit Card Authorization Form Process
If you’re a traveler or a business, there are no second thoughts that it can be quite overwhelming to manage these authorization forms. Enter itilite. A robust corporate travel management platform that helps business travelers and companies in every aspect of business travel.
With itilite, you can free up much time on credit card authorization forms as we will do it for you. You can create a one-time virtual card with each booking, no form submission to hotels, and easy reconciliation with a one-to-one mapping of booking to itilite virtual card. Moroever, you can also limit fraud by limiting the exposure amount using one-time virtual cards and easily calling out all suspicious transactions.
Curious to know more? Get in touch with our product experts now!
