What is an authorization letter?

Some people don't have the need to own a credit card, but when it is deemed necessary, they tend to borrow from someone who has one. If a person is going to use a credit card he doesn't own, he will need to present a credit card authorization letter. It's an important document that entitles the borrower to use someone else's credit card.

The credit cardholder must ensure that letting his credit card borrowed is a one-time use only. When you authorize another person, you allow him to act on your behalf. If you let someone else use your card, you have to be responsible for the transactions that person makes. However, there are cases where authorization is used for someone else like when booking for an international flight. If you use a credit card of a relative, you might be required to present an authorization letter.

How does a credit card authorization letter work?

Credit card issuers ban the practice of letting someone else use your card. If it's authorized, you are breaking the contract, but if it's used without your permission, it's considered fraud.

In most cases, like when you use your relative's credit card, you will have to present the authorization letter stating that the credit cardholder has authorized you to use his credit card for your booking. You will also need to include a colored photocopy of the credit card. Once verified, you will be able to continue and proceed with your flight booking.

How to write a credit card authorization letter?

Writing a credit card authorization letter gives you an authority to use someone else's credit card. Here are a few things to keep in mind if you need to write one:

 Follow the business format (sender's name and address should be left justified)
Put the date and the company address 
Use the generic salutation if you don’t know the contact person’s name
Indicate a specific time when the credit card is going to be used
Specify why the authorization is occurring (Why is the party allowed to use the card?)

Giving authority for your credit card to be used by someone else can be a risky idea because it contains sensitive information. Make sure the person you're lending to is trustworthy and that there will be no future problems so you can write them a credit card authorization letter without worry. Better yet, don't lend your credit card at all.

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