2026-06-10 / beneficiary authorization / third-party payment / wire transfer

The Beneficiary Authorization Letter: What It Should Say

When payment goes to a different company, buyers should ask for a short authorization letter that names the transaction.

A beneficiary authorization letter cannot make every payment safe. It can make the payment trail clearer when the invoice issuer and bank beneficiary differ. The letter should answer who authorizes the payment, who receives it, and which order it covers.

The letter should use legal company names, not only trade names. It should name the invoice issuer, beneficiary company, order or proforma invoice number, amount or payment purpose, bank account, relationship between the parties, and a signature or seal from the responsible entity.

Ask for the letter before funds move. A supplier may provide explanations after payment, but late explanations carry less value if a dispute appears. If the supplier says the relationship is normal, ask them to write the normal arrangement down.

Confirm the letter through a known channel. If the account change came by email, call or message the supplier through a separate verified contact. Business email compromise often relies on buyers accepting a new account inside the same compromised thread.

Store the authorization with the final invoice and payment proof. A clean file gives the buyer, broker, accountant, or outside reviewer a visible trail.