Authorization letters are generally written when someone needs to get 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 need to get permission. So, we can get it through a number of means. Then, we get permission from the person in the form of a letter which is 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 institutes issue credit cards to a single person. The person is also provided enough security so that no one else can take advantage of his credit card. So, the credit card is a very personal thing and so, no one else can use your credit card other than you. Whenever someone you trust wants to use your credit card, it would be inevitable for you to write the 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 that someone who is not authorized by the bank or the cardholder is using the credit card.
Importance of writing the credit authorization letter:
As a matter of fact, a credit card is a personal property of a 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 the reason; the person holding the credit card writes to show his consent. Not every person is allowed to seek authorization even. Someone close or someone who the card owner trusts can be written 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 so that it can be kept as proof that the bank granted the permission upon the authorization of the cardholder and 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:
- When you are writing to a bank, you need to be extra careful because if you use ambiguous language, it can result in a huge financial loss. So, it is required that you remain careful and draft everything carefully.
- 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 authorized. This will also ensure that your card has not gone into the wrong hands.
- If you have given temporary permission that you want to be revoked after a specific time period, let the bank know the duration of 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,
I, Mr. Johnsons, authorizes Mr. John to access my credit card to handle my business activities and family expenses for a while because I am traveling abroad.
My credit card is Master Card with the number [X] can be used through the Boston Central Bank. The credit limit of my card is [X]$.
I am requesting you to authorize Mr. John to access my Credit card. Mr. John is my uncle and I trust him. Please grant him access from 10th March, 20XX to 20th March 20XX while I return from my tour. Any purchases after this specified time should not be approved by the bank. Additionally, any purchase made after this time will be considered to be disputable.
If you have any questions regarding this letter, you are always welcome to contact me on my personal number already available in bank records.
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