Can a Customer Charge Agreement be signed electronically?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, electronic signatures are legally valid if intent, consent, attribution, and record retention requirements are met. Some exceptions like wills and certain court filings remain paper-only.

Is notarization required for my charge agreement?

Not typically. Notarization is usually unnecessary for payment authorizations unless state law or a specific contract clause requires it. Use notarization only when a higher evidentiary standard is needed.

How do I prove the signer authorized charges?

Keep the executed agreement, an audit trail with timestamps and IP addresses, evidence of identity verification, and copies of related communications to demonstrate intent and attribution in disputes.

What do I do if the customer disputes a charge?

Follow the agreement's dispute procedure, gather documentation (signed agreement, invoices, delivery proof), and engage the payment processor for chargeback defense within the processor's timelines.

Can the customer revoke authorization later?

Yes. A revocation clause should be included. Federal law requires clear procedures for withdrawing electronic consent in consumer-facing contexts under ESIGN; specify how revocations are submitted and processed.

How long should I keep executed agreements?

Retain agreements per federal and industry rules—generally at least 3 years for tax-related matters (IRC §6501(a)) and 6 years for HIPAA-related records (45 CFR §164.530(j)); state laws may require longer periods.

Electronic Signature
Templates
Miscellaneous
Customer Charge Agreement

Customer Charge Agreement

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Customer Charge Agreement

This Customer Charge Agreement ("Agreement") is entered into as of between Company Name: and Customer Name: .

WHEREAS

1. Company provides goods and/or services to customers and requires authorization to charge customers for agreed charges, adjustments, taxes and fees.

2. Customer desires to engage Company for the goods and/or services described in the Scope of Work and to authorize Company to charge Customer's designated payment method in accordance with the terms of this Agreement.

3. The parties set forth below their mutual agreements with respect to charges, billing, termination and confidentiality.

SCOPE OF WORK

Description of goods and services to be provided

PAYMENT TERMS

Estimated/Agreed Charge Amount Authorized Charge Limit (maximum single charge without prior written consent)

Payment schedule: Invoice frequency:

Accepted payment methods (select all that apply)

Credit Card ACH / Bank Transfer Invoice / Check Other

If credit card or ACH, provide last four digits or reference

Late payment fee: Customer agrees that unpaid amounts past the due date shall incur a late fee of % per month and/or a flat fee of . All fees are cumulative and permissible collection costs, including reasonable attorneys' fees, shall be recoverable by Company.

Customer expressly authorizes Company to charge the designated payment method for amounts due under this Agreement, including taxes, adjustments and late fees. This authorization remains in effect until revoked in writing in accordance with the Termination provisions below.

TERM AND TERMINATION

Agreement start date: Agreement end date:

Notice period required to terminate without cause

Either party may terminate this Agreement for material breach if the breaching party fails to cure within days after written notice. Termination does not relieve Customer of liability for charges incurred prior to termination or for charges properly authorized under this Agreement.

CONFIDENTIALITY

Each party shall keep confidential all non-public information disclosed by the other party in connection with this Agreement ("Confidential Information") and shall not disclose such information to third parties except to its employees, agents or contractors who have a need to know and who are bound by confidentiality obligations at least as protective as those set forth herein. Confidential Information shall not include information that is or becomes publicly available through no fault of the receiving party, is rightfully received from a third party without restriction, or is independently developed without use of the disclosing party's Confidential Information.

The receiving party shall use at least the same reasonable degree of care to protect Confidential Information as it uses to protect its own confidential information, but in no event less than a reasonable standard of care.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Venue for any dispute shall be the state or federal courts located within that state, and the parties submit to the exclusive jurisdiction of such courts.

ENTIRE AGREEMENT

This Agreement, including any documents incorporated by reference and any purchase orders accepted by Company, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, proposals, negotiations and communications, whether written or oral. No modification shall be effective unless in writing and signed by both parties.

NOTICES AND BILLING CONTACT

Billing contact name Billing contact email Billing address

Notices required or permitted by this Agreement shall be in writing and sent to the addresses provided above or to such other address as a party may designate in writing. Notice is effective upon receipt.

MISCELLANEOUS

Assignment: Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except that Company may assign its rights to an affiliate or successor in interest without Customer consent.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Company

Printed name:

By:

Date:

Customer

Printed name:

By:

Date:

What a Customer Charge Agreement Is and when it applies

A Customer Charge Agreement is a written authorization that sets out the terms under which a business may charge a customer for goods or services, including recurring billing, one-time charges, refunds and dispute procedures. It identifies the parties, describes authorized payment methods, states amounts or calculation methods, and records customer consent and signature. These agreements are used by merchants, service providers, and subscription vendors to document payment authorization and to provide a clear record for billing, collections, and regulatory compliance in the United States.

Typical users and roles that complete this agreement

Understanding who inputs and who signs the agreement helps assign review, authorization, and recordkeeping responsibilities.

Small business owners and sole proprietors who bill clients directly and need a clear authorization record.
Enterprise billing or collections teams that centralize invoicing, recurring payments, and dispute handling.
Healthcare and financial services staff who must document payment consent while meeting industry privacy rules.

Why a clear Customer Charge Agreement matters

A properly drafted agreement reduces disputes, supports collections, and documents customer consent for charges. It clarifies payment timing, late fees, refund terms, and dispute handling, and provides evidence of authorization preserved under ESIGN (15 U.S.C. ch. 96) and UETA where applicable.

Core sections to include in a professional Customer Charge Agreement

Include specific, enforceable language and structured fields so the agreement is clear for customers and defensible if disputed.

Parties

Identify the business and customer by full legal name and contact information so the contracting entities are unambiguous.

Authorized Charges

Describe charge types (one-time, recurring, prorated) and how amounts are calculated or referenced to invoices.

Payment Method

Specify the payment instrument (card, ACH, direct debit, third-party processor) and any setup or verification steps required.

Billing Schedule

State billing frequency, due dates, late fees, and when recurring charges will be attempted or retried.

Authorization Language

Include explicit consent text granting permission to charge the specified payment method; record the signer and timestamp.

Dispute & Refund Terms

Detail how disputes are reported, the resolution process, timelines for refunds, and any chargeback handling.

Step-by-step: completing and executing the Customer Charge Agreement

Follow these steps to prepare, present, and retain a valid authorization that supports billing operations and dispute defense.

01

Draft the agreement: Populate parties, amounts, payment method, billing cycle, and dispute process.
02

Verify customer details: Confirm name, address, email, and payment instrument validity before sending to the signer.
03

Collect signature: Use an electronic signature platform or wet signature; capture consent and timestamp.
04

Store and notify: Save the executed copy in your records and send a confirmation to the customer.

Typical digital workflow settings for online completion

Configure the document and signing flow to reduce friction and ensure legal validity for electronic execution.

Field	Configuration
Signature field	Required; attach signer role and authentication
Date field	Auto-fill MM/DD/YYYY on signature
Payment request	Optional: link to processor or request token
Audit trail	Enable IP, timestamp, and action log retention

Technical formats and integrations to support the agreement

Choose platform capabilities that match your compliance needs and technical stack to minimize manual handling and errors.

File formats: PDF and DOCX supported
Integrations: CRM and ERP connectivity
Authentication: Email, SMS, or stronger options

Where executed agreements are sent and retained

A clear routing policy ensures signed agreements reach accounting, customer records, and backup storage without manual handoffs.

Customer copy: Email a PDF to the signer immediately after execution
Payment processor: Send payment token or authorization to gateway
Accounting system: Attach executed agreement to customer billing profile
Records retention: Archive signed copy in secure storage

Key timing elements to set in the agreement

Define time-bound items clearly so both parties know when charges occur, when disputes must be raised, and when payments are due.

Effective date:

When authorization begins and billing may start

Billing cycle:

Monthly, quarterly, or other recurring interval

Payment due date:

Number of days after invoice issuance

Dispute window:

Days within which customer must notify disputes

Renewal notice:

When automatic renewal or termination notice is required

Example eSignature platform comparison for executing Customer Charge Agreements

Compare starting price and common features across vendors. signNow appears first in the header and column order as shown.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-world examples of using Customer Charge Agreements

Examples show how organizations apply charge agreements to reduce friction and document consent.

Optica Ventures — COO

Optica centralized its billing authorizations for better tracking and customer clarity.

The agreement standardized recurring charge descriptions and dispute steps.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Martin Properties — Founder

A real estate operator documented tenant charge authorizations to streamline incidentals billing.

Signed digital agreements reduced in-person processing.
"I can process and execute all of these documents online with 100% compliance and built-in security."

Practical tips to minimize disputes and processing errors

Apply consistent drafting, verification, and storage practices so authorizations are defensible and operationally efficient.

Use clear, plain-language terms

Define amounts, billing dates, and retry logic in simple language to reduce customer confusion and chargeback risk.

Record explicit consent

Capture the signer's intent and method of consent in the audit trail; note if consent was given electronically under ESIGN.

Verify payment instruments

Confirm card or ACH details and perform verification to lower declines and returned-payment fees.

Centralize storage

Keep executed agreements in a secure, searchable repository indexed by customer and contract ID.

Common preparation and execution pitfalls to avoid

Vague authorization language that fails to describe recurring versus one-time charges, leading to customer disputes and chargebacks.
Mismatched names or account details between the agreement and payment method, causing declines or compliance gaps.
Storing signatures without an audit trail or retention policy, undermining ability to prove consent in disputes.
Omitting dispute procedures or timelines, increasing the risk of contested charges and regulatory complaints.

Potential financial and legal consequences of incorrect agreements

Chargebacks: Merchant liable for disputed transactions

Refund liabilities: Obligation to return improper charges

Regulatory fines: Penalties for data breaches or privacy violations

Contract disputes: Court costs and damage awards

Incorrect TIN: Can trigger backup withholding

Backup withholding: 24% withholding rate applies

Security and compliance controls to look for

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

HIPAA support: BAA required for PHI

Audit trail: IP, timestamps, action history

Certifications: SOC 2 Type II, ISO 27001

Regulatory coverage: ESIGN, UETA, 21 CFR Part 11

Who is authorized to sign and what authority they must show

Individual customer

A consumer or sole proprietor signs using their legal name and confirms payment method ownership. If signing electronically, the platform must capture consent and an audit trail to demonstrate intent and attribution.

Business signer

An officer or authorized agent signs for a company; include printed name, job title, and evidence of authority such as a delegated signing policy or corporate resolution when required by internal controls.

Frequently asked questions about Customer Charge Agreements

Answers to common legal, operational, and technical questions when preparing or executing charge authorizations.

Need help? Contact support

Can a Customer Charge Agreement be signed electronically?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, electronic signatures are legally valid if intent, consent, attribution, and record retention requirements are met. Some exceptions like wills and certain court filings remain paper-only.
Is notarization required for my charge agreement?
Not typically. Notarization is usually unnecessary for payment authorizations unless state law or a specific contract clause requires it. Use notarization only when a higher evidentiary standard is needed.
How do I prove the signer authorized charges?
Keep the executed agreement, an audit trail with timestamps and IP addresses, evidence of identity verification, and copies of related communications to demonstrate intent and attribution in disputes.
What do I do if the customer disputes a charge?
Follow the agreement's dispute procedure, gather documentation (signed agreement, invoices, delivery proof), and engage the payment processor for chargeback defense within the processor's timelines.
Can the customer revoke authorization later?
Yes. A revocation clause should be included. Federal law requires clear procedures for withdrawing electronic consent in consumer-facing contexts under ESIGN; specify how revocations are submitted and processed.
How long should I keep executed agreements?
Retain agreements per federal and industry rules—generally at least 3 years for tax-related matters (IRC §6501(a)) and 6 years for HIPAA-related records (45 CFR §164.530(j)); state laws may require longer periods.

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