What is an Authorize.Net payment gateway, and how does it work?
Authorize.Net is a reliable and secure payment gateway software service designed to help businesses seamlessly accept and process online payments. With Authorize.Net, merchants can handle a variety of payment methods, including credit cards, e-checks, mobile payments, and more, all while maintaining a high level of security.
Here’s a breakdown of how Authorize.Net works
Customer initiates a payment: When a customer makes a purchase, whether it’s on a merchant’s website, through a mobile device, or in person, they provide their payment information, including card number, expiration date, card code, and customer information.
Data encryption and security: Owned by Visa, Authorize.Net takes its mission to protect sensitive customer data seriously. It encrypts the information during transmission, helping to ensure it remains protected from unauthorized access and enabling tokenized access for recurring billing and refunds.
Payment data transmission: The customer’s payment details are securely transmitted from the merchant’s website or point-of-sale system to Authorize.Net’s servers.
Authorization request: Authorize.Net then forwards the payment information to the appropriate payment processor or acquiring bank, requesting authorization for the transaction.
Authorization response: The payment processor or acquiring bank carefully reviews the transaction details and sends an authorization or decline response code back to Authorize.Net.
Transaction processing: If the transaction is authorized, Authorize.Net electronically tells the customer’s merchant account to process the payment by capturing the funds from the customer’s account and transferring them to the merchant’s account.
Payment confirmation: Once the payment is successfully processed, Authorize.Net sends payment confirmation to both the merchant and the customer – depending on the business owner’s notification preferences, providing reassurance that the transaction has been completed.
Settlement and funds transfer: The funds from the customer’s account are settled and transferred by the merchant account provider or acquiring bank to the merchant’s designated checking account. The timing of this settlement may vary based on the agreement between the business owner and their bank, but it is usually a couple of business days.
Authorize.Net is considered well-established, reliable, and secure
As a wholly owned subsidiary of Visa, Authorize.Net acts as a trusted intermediary between the merchant, the customer, and the payment processor or bank. By facilitating secure payment transactions, simplifying PCI compliance, and maintaining cardholder data for refunds or recurring billing, they ensure a more smooth transfer of funds,
High-risk Authorize.Net accounts are different and must be set up correctly to avoid shutdowns
If you sell a regulated item like CBD, nutritional supplements, FFL or tactical items, smoking accessories, or alcohol, you need specialized payment processing.
To prevent held funds or shut down accounts, the merchant account connecting to your Authorize.Net payment gateway must be explicitly underwritten for your products and services.
Our recommended Authorize.Net merchant accounts enable businesses to focus on providing exceptional products and services while leaving the payment processing to the experts.
You can learn more on our high-risk Authorize.Net information page or contact us with any questions using the form below.