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A payment authorization form is used by businesses and individuals to authorize payment of a debt to another business or person. With a payment authorization form, you can collect authorization for payment from your customers before making a payment to another business or individual.
Usually, a payment card will require additional information to begin processing, such as a personal identification number, expiration date, zip code, or card security code. Once card information has been entered, it is sent to the merchant bank, which is the lead facilitator on an electronic transaction.
A direction to pay form is a document that authorizes a financial institution to make a payment from one account to another. The form typically includes information about the payee, the amount of the payment, and the date the payment is to be made.
Having a payment authorization form process for these transactions helps confirm and verify the payment details agreed upon with your customer. It certainly establishes validity when assessing debits against a particular card or bank account.
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