Form - Electronic Card Authorization2 2025

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Payment authorization is when an issuing bank gives the green light on a transaction, confirming its prepared to release the authorized amount of funds from the customers account.
An Automated Clearing House (ACH) authorization is a payment authorization that gives the lender permission to electronically take money from your bank, credit union, or prepaid card account when your payment is due. You can revoke this authorization.
How does card authorisation work? Cardholder initiates transaction. The merchant sends an authorisation request. The card issuer evaluates the transaction. Authorisation response.
The businesss point-of-sale (POS) software will automatically send a request to their payment processor or acquirer, asking them to authorise the transaction. The acquirer will take the request and send it over to the issuer, via the card network, requesting approval.
A credit card authorization form is one way to protect yourself against chargebacks. If you have a signed document from the cardholder that gives you permission to charge their card for services rendered, your chances of winning your case with the card issuer are much more likely and less complicated.