A credit card authorization letter allows someone else to make a payment using your credit card. That’s a potentially risky thing to do, so you need to be careful about specifying exactly what you are authorizing a third party to do.

We’ll show you how to create this document and also give you a sample of how it should look like.

Example of a Credit Card Authorization Letter

Here’s an example of how a detailed credit card authorization letter should look like (we’re using a Travel Agency authorization reference for a flight ticket):

Jane Smith
83 Park Avenue
New York City, New York

May 17th, 2021

Re: Credit card authorization for Visa 4519-XXXX

I, Jane Smith, holder of Visa credit card 4519-XXXX expiring on 07/23, authorize XYZ Travel Agency to purchase my return flight ticket to Chicago with the reference number XXX.

My billing address is:
83 Park Avenue
New York City, New York

I agree to pay for this purchase in accordance with the issuing bank cardholder agreement.

Jane Smith

If you’re unsure about what to include in your letter, don’t hesitate to ask the third party you’re authorizing. Make sure you’re as specific as possible, so your credit card is used exactly as you instructed.

Download Credit Card Authorization Letter Templates:

Credit card authorization letter template for Microsoft Word
Credit card authorization letter template for Google Docs
Credit card authorization letter template in PDF

Here’s a sample credit card authorization letter using our template:

Credit card authorization letter sample

⚠️ Please Read Before Using This Template!

This template must be customized to fit your circumstances. You will see instructions for the information that you will need to insert. These instructions are indicated by ____ text.

Be sure that you fill in all required information and delete the placeholder text before you send the letter.

Your letter will be less effective if our instructions are still visible!

Key Takeaways

  • Purpose of Credit Card Authorization Letters: With these letters you grant permission for a specific purpose, allowing a designated individual or company to use your credit card for a limited time or a one-time transaction, typically when you’re not present.
  • Common Scenarios Requiring Authorization: examples include booking travel through a travel agency, paying for another person’s hotel stay, or authorizing a trusted institution to use your card on your behalf, especially in situations like booking flights.
  • Distinguishing from Authorized Users: A credit card authorization letter differs from adding an authorized user. While the former is a one-time or limited-use consent, an authorized user has continuous access to the account, albeit without ownership.
  • Cautionary Notes: Credit card authorization letters should not be used casually, especially for friends or family members. Sharing your credit card with someone, even with written consent, can violate your credit card agreement and expose you to potential fraud.

What Is a Credit Card Authorization Letter? 

A Credit Card Authorization letter is a document that authorizes someone else to use your credit card for a specific purpose. This can be paying for utilities, the mortgage, a car loan payment, or other dues you might have. It’s usually addressed to an institution or company, and it is only used on a one-time basis or for a limited time indicated in the letter.

The letter contains your written consent to use the card, as well as specific instructions on how and when it may be used by the recipient. Its purpose is to allow the merchant to use your credit card without you being present to do so yourself. 

To better understand this, let’s look at an example. 

Travel agencies often ask for a credit card authorization letter when they book a trip on your behalf using your credit card details. By providing the letter, you consent to them using your card to book the trip. The letter also protects them from any liability in case you decide to dispute the transaction later on.

Besides booking a holiday with a travel agent, there are a few other common scenarios when you may need to write a credit card authorization letter. 

💡 A credit card authorization letter shouldn’t be confused with being an authorized user. An authorized user is like a secondary account holder (without ownership) that has continuous access to the account and can use it to build credit. 

When Do I Need a Credit Card Authorization Letter? 

Knowing when you might need a credit card authorization letter can be extremely useful. Let’s look at a couple of common situations that may require a letter of authorization. 

1. Booking a hotel room for someone else using your credit card

Many hotels make credit card authorization letters mandatory when you pay for another guest’s accommodation with your card. So if you’re feeling generous and want to pay for your spouse’s hotel room while they’re traveling, ask your hotel about the letter. Not providing it can affect your guest’s hotel stay.

2. Authorizing a business or institution to use your card on your behalf

This is usually a one-time transaction that permits a trusted institution to use your card when you’re not present. It’s most commonly used for booking flights, but there may be other situations where it’s required or useful. 

How Do I Write a Credit Card Authorization Letter? 

Some businesses (like hotels) usually have their own credit authorization forms. In this case, all you need to do is fill them out!

If you have to write one yourself, don’t stress. Crafting a well-written letter is quick and simple. Use simple language, a formal tone, and include the following features:

  • Your full name
  • Your contact information
  • The date
  • Your credit card information and billing address (exclude the CVV code)
  • The amount you are authorizing 
  • The reason for the authorization (be specific!)
  • The business or institution that is authorized to use it 
  • The amount of time they can use it for (if it’s recurring)
  • Your bank’s contact information (if necessary)
  • Your signature

Be Cautious 

Credit card authorization letters should not be used to give a friend or a family member permission to use your credit card.

The letter does not protect you against fraud if the other person misuses the card, and giving your credit card to someone else can put you in a vulnerable situation. To make matters worse, you’re also violating your credit card agreement by sharing your card with someone else, even if you provide your written consent. 

If you’re unable to use the card yourself, consider adding someone as an authorized user or a joint owner.  

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