Authorize.net is one of the leading eCommerce payment gateways. It’s a popular choice among merchants, both large and small, due to its offering of a secure and seamless payment experience. Whether you’re just starting as a business or are looking to switch to a better payment gateway, Authorize.net is a solid option to consider.
In this article, we’re going to explore the ins and outs of Authorize.net as a payment gateway provider, and what merchants should consider when signing up.
TL;DR:
- Authorize.net is a payment gateway service provider that enables businesses to accept various online payment methods, credit card payments, debit cards, digital walletss.
- Merchants who sign up for Authorize.net through Stax get access to the payment gateway and virtual terminal.
- Key features offered by Authorize.net include automated recurring billing, fraud detection, digital invoicing, and integrations with payment solutions such as Stax Pay.
Learn More About How Stax Pay Integrates With Authorize.net
What is Authorize.net?
Authorize.net is a payment gateway service provider that allows small to medium-sized businesses to accept and process a wide range of online payment methods like credit card payments, debit cards, and digital wallets. As a wraparound service, it provides merchants with secure payment processing, fraud protection, and value-added features including recurring billing, virtual terminals, and mobile payment management. One of the most trusted eCommerce payment systems in the world, Authorize.net was founded in 1996 and acquired by Visa, Inc. in 2010. The majority of Authorize.net’s user base is located in the United States, which hosts approximately 93% of the merchants using the service worldwide.
How Does Authorize.net Work?
As a payment gateway provider, Authorize.net acts as a bridge between a business owner’s website and the payment processor. Whenever a customer purchases on your website, payment information is securely transmitted to Authorize.net, which sends a request to the issuing bank to confirm funds and authorize the card transaction. Once the transaction is approved, the funds are sent to the merchant account, i.e., the business’ bank account at the acquiring bank.
Businesses choosing Authorize.net as their provider have two options: They can subscribe to an all-in-one payment plan that offers additional merchant services, or pay for the payment gateway only. If you choose the latter option, you’ll need to set up your own merchant account to accept payments from your customers.
Key Features of Authnet Gateway Billing
Advanced fraud detection suite (ARBS)
Authorize.net’s in-built fraud detection system is included in every plan and makes it easy for businesses to monitor their merchant account for any suspicious activity. This includes unusual transaction patterns, geographic location, IP addresses, address verification, and more.
Automated recurring billing
With Authorize.net, recurring billing is included as a core feature, unlike many payment solutions. This makes it well-suited for subscription businesses or those that require recurring billing functionality, such as memberships or one-on-one professional services.
With Authorize.net, you can set up weekly, monthly, or annual billing for your customers without the liability of storing payment information yourself for easy subscription management. Merchants can also opt to sign up for Authorize’s dunning management system to update card details and avoid involuntary churn.
Customer Information Management (CIM)
Merchants using Authorize.net can create profiles for repeat customers, so they don’t have to re-enter customer information with every purchase. A CIM includes billing, payment, and shipping information, creating a smoother shopping experience at checkout. CIM profiles can be integrated directly with your eCommerce website or CRM system via Authorize’s open API, which helps to simplify subscription management and identify key trends in sales activity.
Digital invoicing
If you’re a business offering professional or custom services, invoicing is an important part of ensuring consistent and reliable cash flow. Authorize.net’s digital invoicing system comes free with its payment gateway plan and makes it easy to create, email, and manage invoices for both one-time and recurring payments.
Invoice templates can be customized according to payment types, promotional discounts, or refunds. You can manage this directly from Authorize.net’s interface, which allows you to track in real time whether an invoice has been paid.
Multiple integrations
As one of the largest payment gateway providers, Authorize.net offers a variety of pre-built integrations for merchants and retailers, including eCommerce platforms, shopping carts, billing software, POS systems, and more. Authorize’s open API and developer support center also make it possible to build your own integrations from scratch using their developer guides.
Authorize.net integrates fully with Stax Pay for a seamless payment processing experience for your customers. This brings us to our next point…
Stax and Authorize.net
If you’re looking for a flexible, cost-effective way to process online payments without overhauling your existing tech stack, the Stax and Authorize.net pairing is worth serious consideration.
Through Stax, businesses get access to Authorize.net’s trusted gateway services at nearly half the standard cost. Instead of paying $25/month when signing up directly, Stax customers can expect:
- $12.95/month gateway fee (vs. $25 direct)
- $0.05 per transaction (vs. $0.10 per transaction direct)
- Access to all Authorize.net core features including fraud detection, recurring billing, and Customer Information Management
Beyond the savings, this integration offers flexibility and compatibility that many growing businesses need. That’s because Authorize.net is one of the most widely supported gateways on the market, with native integrations built into many leading platforms. This means:
- No need to migrate saved payment tokens if you’re already using Authorize.net
- Simplified onboarding with your existing tech stack
- Improved portability, since tokenized data is stored in a third-party (not locked into one provider)
This third-party token storage also acts as an insurance policy for future growth. If you ever decide to switch software solutions or upgrade systems, your data can move with you—no starting over from scratch.
Pair that with Stax’s award-winning customer support, real-time reporting, and transparent pricing, and you get a scalable payment stack built for long-term success.
Why choose Authorize.net through Stax?
In a nutshell, the key benefits of integrating your Authnet account with Stax include:
- Lower cost than going direct
- Seamless integration with existing systems
- Greater control over your data and migration flexibility
- Full access to Stax’s powerful analytics and support ecosystem
For businesses that need flexibility, savings, and reliability, leveraging Authorize.net through Stax is a strategic way to get the best of both worlds.
Authnet Pricing
Business owners can opt to subscribe for a full plan with a merchant account, or for the payment gateway only. Both plans require a monthly fee in addition to per-transaction fees for credit card processing:
All-in-one plan:
$25 per month, 2.9% + $0.30c per transaction
Payment gateway-only plan:
$25 per month, $0.10c per transaction, $0.10c daily batch fee
How To Set Up Your Authorize.net Account
You can create your Authorize.net account with the following steps:
- Click ‘sign up’ and select which plan you want. You have a choice between the all-in-one plan with the merchant account included or the payment gateway plan only. Note that if you select the gateway plan, you will need to provide your own merchant account.
- Authorize.net requires you to make a merchant application with certain details about your business. This includes personal details, business type, name, and location, and the bank account you want your funds deposited into.
- Activate your account after receiving your confirmation email.
- Test your payment connection in Test Mode before readying yourself for live transactions.
- To connect Authorize.net with your payment solution, you will need to generate a transaction key and API ID key.
- Select your chosen security settings i.e. CVV authentication or the payment velocity filter.
It’s also possible to set up your Authorize.net via your merchant services provider if you already have a merchant account, which can offer reduced rates.
Is Authorize.net the Right Option For You?
To sum up, Authorize.net is a widely used payment solution that provides secure online payment processing and merchant services. It offers a range of value-added features and integrations, making it a popular choice for small and medium-sized businesses.
Which payment plan is best for your needs will ultimately depend on whether your business already has a merchant account, and if not, whether you would prefer to obtain one independently. If you do have a merchant account, the payment gateway-only option may be sufficient for your needs.
At Stax, we can help you find the best payment solution for your business. Contact us to learn more.
Quick FAQs about Authnet Gateway Billing
Q: What is Authnet Gateway Billing?
Authnet Gateway Billing refers to the billing system used by Authorize.Net, a leading payment gateway service provider. It allows businesses to accept various online payment methods, including credit cards, and digital wallets. The system offers secure payment processing, fraud protection, and features such as automated recurring billing.
Q: What features does Authorize.Net offer to merchants?
Authorize.Net provides a robust suite of features designed to enhance payment processing for merchants. Key features include automated recurring billing, advanced fraud detection, Customer Information Management (CIM), digital invoicing, and multiple software integrations. These features help merchants streamline operations and improve customer experience.
Q: How does Authorize.Net’s pricing structure work?
Authorize.Net offers two main pricing plans: an all-in-one plan with a merchant account and a gateway-only plan. The all-in-one plan costs $25 per month plus 2.9% + $0.30 per transaction, while the gateway-only plan also costs $25 per month, with an additional $0.10 per transaction and a daily batch fee.
Q: How secure is the payment processing with Authorize.Net?
Authorize.Net employs a comprehensive security framework to ensure secure payment processing. This includes PCI-DSS compliance, payment tokenization, and an advanced fraud detection suite with configurable rules-based filters. These measures help protect against fraudulent transactions and safeguard customer payment information.
Q: What are the pros and cons of using Authorize.Net?
Pros of using Authorize.Net include accepting a wide variety of payment types, 24/7 customer support, and straightforward pricing with no hidden fees. However, cons include high chargeback fees, a clunky interface, and geographical restrictions limiting usage to certain countries like the U.S., Australia, and Canada.
Q: Is Authorize.Net suitable for international businesses?
While Authorize.Net allows merchants to accept multiple global currencies, its service is mainly available to businesses in the U.S., Australia, and Canada. Merchants must have a merchant services provider in one of these countries to use Authorize.Net, which may limit its suitability for some international businesses.
Q: How do I set up an Authorize.Net account?
Setting up an Authorize.Net account involves selecting a pricing plan, completing a merchant application with business details, and activating the account after receiving confirmation. Businesses should also test their payment connection in Test Mode before going live and configure security settings like CVV authentication. Alternatively, you may be able to set up an Authorize.net account via your merchant services provider.
Q: What are some common reviews and opinions about Authorize.Net?
Authorize.Net is generally viewed as a reliable and secure payment gateway, with many users praising its wide range of features and integrations. However, some reviews highlight the outdated interface and high chargeback fees as areas for improvement. Overall, it remains a popular choice for small to medium-sized businesses looking for comprehensive payment processing solutions.
Q: Does Authorize.net support Level 2 and Level 3 processing?
Authorize.net offers Level 2 processing and may support Level 3 processing through certain integrations or when using their virtual terminal. Availability can depend on your merchant account setup and business type.
