25 May One of the Most Critical Forms Your IT Clients Need to Sign
No one enjoys asking their clients to fill out paperwork. The IT industry is no different.
And the more sensitive the document, the more awkward it can be to ask.
So when you’re starting a relationship with a newly on-boarded IT client, you need to make sure this one form is top of mind, as a part of your process.
This one critical piece of paper cannot get lost in translation, as a part of your on-boarding process.
The payment authorization form.
There’s been a lot of cases where MSP’s shrug it off like “I don’t need an extra payment authorization form filled out. What’s the worst that could happen? They told me verbally it was okay to charge their credit card on a recurring basis.”
But we assure you, the issue is deeper than a simple verbal conversation.
Here’s the main two issues you face when you do not make your clients sign this recurring payment authorization form.
Protect yourself against fraud.
We understand you don’t want to nag your IT clients, but having a payment authorization letter should be an important task to cross off your on-boarding checklist. This applies for every IT client signing up with your IT firm.
Your business takes a gamble by forgoing the authorization form, and leaves you unprotected against fraud charges.
The reason it’s a risky move for your company, lies in the fact that you do not have any written proof your client agreed to pay your company for the recurring charge.
Credit cards companies are not kind when there’s no signed authorization letter. It is considered fraud, legally speaking. And if you charge a client’s card without their written consent, it could end up in a battle of he said/she said. Without any signed letter, you basically are giving the accuser proof that you had no consent to charge their card continually.
Verbal consent doesn’t hold up, as it’s difficult to prove.
Aside from the risk of fraud accusations, what other reasons would your business want to consider having a authorization letter signed?
Assuring your business will be paid.
This doesn’t have to do with fraud, but it does have to do with the overall health of your business.
If you have your IT clients agree to monthly payments, they are guaranteeing your company will have a consistent, recurring revenue.
Stability in your revenue does wonders for your IT company and your clients. It’s providing the money and resources to keep your staff on board, and keep up the great quality of service that you offer to your IT clients.
It may seem rude to insist, but insisting your clients sign the authorization letter before you start a partnership will save both of you conflict down the road.
Want to fully integrate your PSA with your accounting and billing?
To be an efficiently operating IT business, you need your payments authorization filled out. You also need to make sure that your PSA is fully integrated into your accounting and overall payments process, once this form is completed.
Download the free example of the payment authorization forms for both credit cards, and ACH.