Q:

How does a person write a bank authorization letter?

A:

Quick Answer

A bank authorization letter gives a third party permission to do banking on behalf of an account holder. The letter should be formally written and should include an explanation for the authorization, in addition to details of the third party.

 Know More

Full Answer

Before writing an authorization letter, it is important to find out the specific policies of the account holder's bank. The bank might require forms to be filled out rather than a letter.

If an authorization letter is required, it should be typed. The tone of the letter should be polite, professional and businesslike. And it should get to the point and be succinct.

The full name, address and telephone number of the account holder should be at the top of the letter. The bank account number should also be listed for ease of reference.

The start of the letter should explain what is required. The name and details of the third party who is getting access to the account should be outlined clearly. There should also be clear instructions as to what actions this third party should be allowed to take. For example, should the person just deposit funds, or should they also be able to withdraw funds or do something else? A brief but full explanation should also be given as to why the authorization is required.

Learn more about Business Communications

Related Questions

  • Q:

    What is a bank pay order?

    A:

    In banking, a pay order is a rough negotiable draft that instructs a bank to pay a certain sum of money to a third party that may or may not be involved with the bank. A bank pay order is similar to a check, but it is negotiable unlike a check.

    Full Answer >
    Filed Under:
  • Q:

    What are sample proxy letters?

    A:

    Sample proxy letters are templates of letters a person writes to give another person the authorization to perform a specific task on their behalf. A short sample of a proxy letter is: "Dear XYZ corporation, My name is ABC Brown, and I will be unable to attend this month's shareholder's meeting. I am authorizing QRS Brown to vote on my behalf at the meeting."

    Full Answer >
  • Q:

    What is a letter request for payment?

    A:

    A letter request for payment is a document used by a business owner to ask payment from a client on a past due account for a rendered service or product. When writing this type of letter, there are a few things to keep in mind, such as keeping the appropriate tone, using a business or company letterhead, addressing the specific issue and including a copy of the original bill, according to English Club.

    Full Answer >
  • Q:

    How do I write a final payment letter?

    A:

    A final payment letter includes the name and address of the debt collector or creditor and any account numbers associated with your account. It also includes a brief statement about what constitutes an official release from debt and as well as a warning against future attempts to collect payment.

    Full Answer >

Explore