Credit authorization letter template

Credit Authorization Letter

Letters Kate

Authorization letters are generally written when someone needs a particular kind of authorization, and the card owner wants to permit him to access the credit card. There are many scenarios in which we must get permission through several means. Then, we get permission from the person in the form of a letter, known as an authorization letter.

What is a credit authorization letter?

You need to write this letter when you want to allow someone to use your credit card. As a matter of fact, financial institutions issue credit cards to a single person. The person is also provided with enough security, so no one else can use his credit card. So, a credit card is very personal, and no one else can use it. Whenever someone you trust wants to use your credit card, it is inevitable for you to write a permission letter if you want to keep yourself safe from the financial damage inflicted upon you.

Some states also require the credit card owner to write to the financial institution that has issued the credit card because they usually block the card when they see someone not authorized by the bank or the cardholder is using it.

Importance of writing the credit authorization letter:

As a matter of fact, a credit card is the personal property of the person who has been issued it. So, no one else, at any cost, can use that credit card unless the card owner himself allows it. This is why the person holding the credit card writes to show his consent. Not every person is allowed to seek authorization. Someone close or someone whom the card owner trusts can write this kind of permission letter.

In many states, the card owner must write the authorization letter to the financial institutions, such as banks, and then the bank grants access to the authorized person.

The bank asks the cardholder to write this letter to be kept as proof that the bank granted permission upon the cardholder’s authorization. If the authorized person does any scam, the bank will not be responsible for it.

Tips for writing the authorization letter for a credit card:

  1. When writing to a bank, you must be extra careful because using ambiguous language can result in a huge financial loss. So, you are required to remain careful and draft everything carefully.
  2. Make it clear to the bank that you are authorizing whom You should add the name and other identification details in the letter so that the bank can know who has been approved. This will also ensure that your card has not gone into the wrong hands.
  3. If you have given temporary permission that you want to be revoked after a specific period, let the bank know the period after which your authorization will be deemed expired.

Sample Credit Authorization Letter

5th Feb, 20XX

Name of the recipient:

Name of the company:

Dear ABC,

I, Mr Johnson, authorize Mr John to access my credit card to handle my business activities and family expenses for a while because I am travelling abroad.

My credit card is a Master Card with the number [X], which can be used through Boston Central Bank. Its credit limit is [X]$.

I am requesting that you authorize Mr. John to access my credit card. Mr. John is my uncle, and I trust him. Please grant him access from March 10th, 20XX, to March 20th, 20XX, while I return from my tour. The bank should not approve any purchases after this specified time. Additionally, any purchase made after this time will be considered disputable.

If you have any questions regarding this letter, you are always welcome to contact me at my personal number, which is already available in bank records.

Sincerely,

Johnson


File: Word (.docx) 2007+ and iPad
Size 18 Kb

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