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What Is a Hotel Credit Card Authorization Form? A hotel credit card authorization form is a document that enables a guest to stay at a property when a third-party (i.e., another person or organization) is paying for it.
The form protects the hotel by ensuring funds are available to pay for the room and that the charges will be approved. It also protects the cardholder by only authorizing certain charges within a specified time frame, so the traveler can't use the card on unapproved expenditures.
Typically it contains: The cardholder's credit card information: Card type, Name on card, Card number, Expiration date. The merchant's business information. Cardholder's billing address. Language authorizing the merchant to charge the customer's card on file. Name and signature of the cardholder. Date.
A credit card authorization form serves two primary purposes: First, it gives a business the authority to charge a credit card without the buyer being physically present. Second, it prevents unwanted and fraudulent chargebacks that can hurt the relationship between a business and a merchant processor.
For starters, using paper forms becomes incredibly inefficient because a business must input your sensitive information into a payment processing system after you have signed the form. Someone may take the information on the credit card authorization form for malicious purposes like identity theft.