[TX] Can we charge customers’ credit cards and run recurring billing with signed authorization forms?

TX Business

Liz

41,505 satisfied customers

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Yes, you can definitely use an online form to authorize recurring monthly billing. The form should clearly state that the customer agrees to have their card charged each month until they cancel the service. It’s important to include language explaining that the charges may vary based on usage or other factors.

This way, you’re covered even if the amount changes. Make sure the form is clear and easy to understand, and keep a record of the signed forms for your records. This can help protect you in case of disputes

Recurring Credit Card Authorization Form

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We run customers’ credit cards over the phone for the rental of dumpsters and portable toilets. We don’t have any kind of authorization form for them to sign because it is usually an emergency or they need it right away. We run the cards before we deliver.

We also have 5 locations around Texas and some customers do not have access to their email to sign forms and get them back to us before we can deliver to them.

Well, now we are having issues with customers disputing the credit card charges, but we do not have anything really besides email/phone communication proving that they owe this. Do we have to have a signature from them? Or will a copy of their driver license work?

Lexi, Chatbot

I understand how challenging it can be to manage credit card transactions without proper documentation. Have you considered any alternative methods for obtaining customer authorization before processing their payments?

Yes, but it will slow down our business drastically and sometimes we are so busy we can’t possibly keep up. I’m trying to find an alternative solution so we don’t have to have prior authorization.

Lexi, Chatbot

Are you currently keeping detailed records of the phone conversations and any agreements made with customers regarding the charges?

Yes, but it’s mostly verbal over the phone and we don’t record phone calls.

Liz

Hi there! My name is Liz and I’ve been an attorney for more than a decade, and I am here to assist with your legal concerns.

So I can best help, have you considered moving to record the calls?

I mean we haven’t even really thought about that, but I’m not sure our phone system has that option. If it does, would we have to have their consent to record them?

Liz

In Texas, you can record a phone call as long as one party consents to it, which means you don't necessarily need the other person's consent if you're part of the conversation, though you can also have a message letting them know it’s being recorded.

You could also consider an option such as having an online form signed, as that can be kept on file to help prove the charges against chargebacks. You could even include clauses that penalize them for chargebacks if you have to sue.

We also have recurring monthly billing where we just run their cards at the beginning of every month until it is called off rent. Could we do an online form that just states that we can run their card each month, or does it have to say a specific amount? The amounts can change each month.

If we could send a form at the beginning just once to each customer, would that work?

Liz

Okay, I think this will have to be the way we go. Thank you!

Liz

You’re welcome.

Liz

41,505 satisfied customers

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