An Authorization Letter For Payment is a crucial document in South African business and financial operations, used to formally authorize and instruct financial institutions to process specific payments. This document is essential when an individual or organization needs to grant permission for payments to be made on their behalf or to set up regular payment arrangements. The letter must comply with South African banking regulations, including the Banks Act 94 of 1990 and FICA requirements, and typically includes comprehensive details about the authorizer, payment recipient, payment terms, and validity period. It's commonly used for recurring payments, third-party authorizations, or specific one-time payment arrangements, and serves as a legal record of the payment authorization.
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1. Letter Header: Date, recipient details (bank/institution name and address), reference numbers if applicable
2. Subject Line: Clear indication that this is a Payment Authorization Letter
3. Authorizer Details: Full name, ID number, contact details, and account details of the person giving authorization
4. Authorization Statement: Clear and explicit statement of the payment authorization being granted
5. Payment Details: Specific details of the authorized payment including amount, recipient, frequency, and duration
6. Verification Information: Any required identification or verification details as per FICA requirements
7. Authorization Period: Validity period of the authorization, including start and end dates if applicable
8. Closing and Signature: Formal closing, signature of authorizer, date of signing
1. Special Instructions: Used when specific payment processing instructions or conditions need to be included
2. Reason for Authorization: Include when context or explanation for the payment authorization is necessary or helpful
3. Witness Details: Used when additional verification through witnesses is required or preferred
4. Revocation Terms: Include when specific conditions for canceling the authorization need to be stated
5. Alternative Contact: Used when an alternative contact person needs to be designated for queries or issues
1. Proof of Identity: Certified copy of authorizer's ID document as required by FICA
2. Proof of Banking Details: Bank statement or confirmation letter from bank confirming account details
3. Supporting Documentation: Any relevant supporting documents explaining or justifying the payment authorization
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Government and Public Sector
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Finance
Accounts Payable
Treasury
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Operations
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