The recurring credit card authorization form provides authorization that enables a business to automatically collect payments (including utility bills, subscriptions, auto payments, etc.) via a customer's credit card account. Payments will be billed each month at the end of that cycle. When you authorize recurring payments, the same amount will be charged to your account regularly. You will no longer be charged after the purchase is paid for in full or when the cardholder's consent is withdrawn.
Recurring payments: What is it?
Typically, recurring payments are arranged weekly, monthly, or annually. It is common to have repeating payment authorizations for memberships at gyms, subscriptions to software, and other forms of recurring payments.
Creating a recurring payment
Generally, there are two situations where a business accepts a recurring credit card payment; either physically by the customer or online through the business's website. Regardless, businesses that take credit card payments repeatedly require accounting software capable of tracking customer information, such as Quickbooks.
A face-to-face meeting
Until the arrival of the internet, this was the most popular format. It is standard practice for gym businesses to lock their clients into a recurring credit card payment plan. For a business to legally receive recurring credit card payments in person, the card owner must sign. After the form is completed, the business should keep it in their files for as long as the person remains a customer.
On the Internet
The benefit of accepting a recurring credit payment online is that it's much easier and involves less documentation or agreements. On most websites, customers are only required to read a “Terms of Service” or click the “Accept Terms” button, which allows the business legal access to charging their credit cards if they make a purchase. Businesses that offer online services often offer a trial period which, if not cancelled, lets them set up a recurring payment after the trial period ends.
Of course, not all businesses require a credit card before accessing a free trial. Some allow users to use the application for free indefinitely without a free trial period.
How to cancel a recurring payment
Most recurring credit card payments can be cancelled online. The consent process may be completed over the phone or by signing a consent form in other businesses. For those who don't know the company, a phone number is usually on your bill. As a backup, you can search for the merchant's name in Google by typing the name of the payment description.