Payment Gateway Provider
Contrary to popular belief, Authorize.Net is not primarily a merchant account provider or a credit card processor. Instead, Authorize.Net is what is known in the merchant services industry as a “payment gateway.” This means that the company provides software and applications that route credit card payments from the point of sale to the actual credit card processor. Payment gateway providers like Authorize.Net are an additional but necessary service if a merchant wishes to use a virtual terminal, website shopping cart, or some mobile processing applications.
Authorize.Net is also a preferred option for its FreshBooks integration capabilities. Though the company specializes in gateway services, it partners with resellers to provide merchant service accounts to businesses. Working with resellers makes rates, fees, and other facets of a contract negotiable, which is an important consideration for any merchant considering Authorize.Net to set up those services.
Acquisition and Location
Authorize.Net was founded in 1996 and acquired by CyberSource in 2007, and then both CyberSource and Authorize.Net were acquired by Visa in 2010. Michael Walsh is the CEO of CyberSource, which is headquartered in San Francisco, California.
Authorize.Net Review Table of Contents
- Costs & Contract: Authorize.Net offers variable contract terms that depend on the reseller’s pricing for its payment gateway.
- Complaints & Service: Authorize.Net has received more than 100 public complaints.
- BBB Rating: Authorize.Net has an “A+” rating and has received 72 complaints and 22 reviews in the past three years. The company has been accredited by the BBB since 2009.
- Sales & Marketing: Authorize.Net is partnered with a large number of resellers and has received some complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With Authorize.Net
Authorize.net has been holding $8097 in customer payments for more than 56 days and refuses to release the funds to me for 90 days. All customers have had the funds withdrawn from their accounts and have signed written agreements to have the funds transferred via ACH. I have never had one customer cancel a check or credit card payment, and I have excellent credit. I’ve already paid for and shipped all the products to the customers, and they’re satisfied with the products.
This is a painful dent in my small business cash flow. Business is hard enough without someone suddenly keeping your money for 90 days!
I first signed up for authorize.net as a payment gateway because I needed both credit card and ACH echeck services. I entered the first customer check payments as instructed, and the funds were withdrawn from the customers’ bank accounts.
Then authorize refused to give the money to me and said it was on hold for 30 days. I asked if there was a problem with the customers banks being able to pay, and they said no. I double-checked with the customers and they confirmed the funds had been withdrawn from their accounts and they were satisfied with my products.
After 40 days, I checked with authorize and they said authorize was now keeping my money for 90 days. Still no explanation or justification. I sent written signed agreements from each of the customers showing they had agreed to have the funds withdrawn from their accounts.
Getting desperate because of this painful dent in my cash flow, I called and emailed support, involved my payment processor and asked my bank for help. Each time, was told the funds remain on hold for 90 days.
Thankfully, I’ve found another gateway and payment processor and will avoid authorize.net like the plague.
*********READ THIS FIRST BEFORE YOU USE THIS COMPANY ************
This is with our merchant credit card processing company Authorized.net
On Aug 21, 2019 we hired them for the gateway/credit card processing company that works with our Dispatching software Service Fusion. We have been using them for about a week now and there has not been a problem. The below email was sent at 11:36 am 8/28/19.
After reading the email I called them and asked them what this meant.
They told me there was a team of analysis that reviewed our account with them and decided to terminate the Credit card processing part. We can still use them as a gateway.
They did not call or give us a 24 hr notice and was told they did not have to. So in the meantime, I have service technicians calling and asking why they cannot accept payment on their pad.
We have done in a week around $7000 in business and the deposits are with Authorized.net. They are holding all the money for 120 days to make sure there will not be any charge backs. We are talking November! I asked them how they can hold my money for that long and was told they can. They just sent this email. Really???
I asked them since they were going to hold our money for 4 months if they were going to pay me interest and they said no. I asked them what if I needed the money you are keeping to make payroll and had to use a line of credit would they pay interest for the loan? They basically told me we do not payout interest.
DBA:
GID:
MID:
Dear Merchant,
Authorize.Net is dedicated to supporting your business needs and we work hard to deliver the highest quality financial products and services. Unfortunately, a business decision has been made to close your merchant account immediately. Closure of your merchant account in no way impacts your access to or use of the Authorize.Net Payment Gateway.
Closure of the merchant account does not affect your access to or use of the Authorize.Net Payment Gateway.
Based on our review, all processed funds may remain on hold for a minimum of 120 days from the last processing date.
Sincerely,
Matt
Authorize.Net Merchant Services | http://www.authorize.net | 855.477.1190 | risk@authorize.net
Hours of Operation for Risk and Underwriting: Monday-Friday 8:00 am to 5:00 pm MST.
This post will help: How to Make Your Payment Processor Release Your Funds
-Phillip
Do not use them! Horrible customer service!! It’s been over 2 months since we got approved for Authorize.Net but my account is still on test mode. I have tried to call to get help to activate it over 6 times no one HAS EVER PICKED UP!!!! Each time I have waited over 45 minutes! It was easier to find another company and do another application than waiting for someone to help from Authorize.Net!!! I do not recommend them at all!!!
This post will help: Best Payment Processors for Great Customer Service
-Phillip
At the very onset I disagreed with the terms. They wanted to dictate my return policy and wouldn’t allow me to refuse American Express (online payments). So I didn’t process one single solitary transaction. Not one. No service was ever provided. They proceeded to steal $25 from my bank account every month for almost a year before I noticed. The flat out, straight up, STOLE hundreds of dollars from me.
This post will help: Best E-Commerce Merchant Accounts
-Phillip
I had used Authorize.net as my gateway account for 10 years and was thrilled when I learned they had full merchant processing capabilities and I was excited to expand the relationship.
Conversely, they apparently didn’t see it as a business relationship at all. From the beginning I have been treated as an unknown and untrusted merchant. They have questioned the “quality” of my charges, placing me on an extended deposit plan without informing me. They have out hold after unfounded hold on my account. For example, 3 days after they told me everything was set to go, I got an email saying there was a funding hold because they wanted a copy of my business license and a couple of other things that could have been provided the day the account was opened. I provided it the same day, but then there was some other hold, that I was not informed about and then another and then another – none of them for any good reason.
It has been nearly a month since signing with them and to date I have received only 14% of the charges I have submitted – all of which they claim have “settled.”
They have used excuse after excuse and promise after promise telling me the funds will appear in 3 days. It is now nearly 3 weeks since the first of these promises. Every time I talk to them they say the hold is lifted and the funds will “pushed today.” The funds never show.
Every time I call I get the same runaround and every rep says they are a manager. The one today (David), said flat out, “Too bad. I’m the highest you’re going to get.” He said the release was sent today, but because it is such a big amount, it needs a manager’s review (apparently he isn’t the right kind of manager). Once the manager’s approval is received, it will take 3 days to receive the deposits. Remember, the amount is this big because they have held all the money. The person I talked with 2 days ago (Austin) said it would be pushed that day.
At this point, they have completely stopped my cash flow, strangling my business, and none of their phone “managers” seem to have any comprehension of the impact their deeply flawed process has on a merchant.
My advice to anyone considering working with them is to think twice. This is not an ethical or competent, or customer-oriented merchant processor. I’ve worked with several and have never experienced anything like it. The last deposit I received was on 3/27 and it only covered charges made between 3/15 and 3/18 – so 9 days to get the first 2 deposits, then nothing for the last 14 days.
Any other merchant processor would have been up and running on day 1. Authorize.net is a big mistake!
This post will help: How to Make Your Payment Processor Release Your Money
-Phillip
I have not used my authorize.net account at all, as I was not able to qualify with any card processing companies. Customer service was awful. I had never set up an account like this before, so I had No clue what I was doing and apparently neither did they. It’s taken me 2 months to try and get qualified with a processor for my website and I am officially giving up, because I honestly don’t have time to run around all day going back and forth with these “companies” and back and forth to and from the bank for multiple letters that needed to be signed by Chase Bank. I spent a fraction of the time in a dealership and walked out with a new car. This has been a total and complete joke. not to mention that the processing companies Insisted on having someone do an in person inspection of my work place, aka My home. even though I run an online print on demand business…. so, there is literally nothing to look at, besides my laptop. And well, I’m not gonna just let some company look through my laptop because they say so. Oh and apparently they “needed” to know my address history for the past 10 years? Wtf? Why? Just run a friggen credit report, look into my business via the website and verify my bank account info! You’d think I was being vetted to board Air Force One, with all of the information they “needed”.
I will say that the customer service was pretty good when I needed to close my account and they refunded me for April’s charge.
This post will help: Best E-Commerce Merchant Accounts
-Phillip
I have been in business for over 7 year and have never dealt with a company so corrupt and dishonest like Authorize.net. I opened an account with them and they approved the account after making several transactions. I received an email from them saying that my merchants account will be closed with absolutely no explanation. I requested in writing the reason for why the account is being closed and they couldn’t even give me a reason. They said all funds may remain on hold for up to 120 days from the last processing date. This corrupt company wants to keep my customers money and not refund them back. We requested a refund to our customer and this company also denied to do that. DO NOT USE THIS COMPANY THEY ARE SCAMMERS.
This post will help: How to Make Your Payment Processor Release Your Money
-Phillip
No Way to stop billing
From The Editor
This Post Might Help: Cancelling a Merchant Account Without Paying a Fee
The rates changed so I had to cancel my account – however, they TOLD me it was cancelled, but they didn’t cancel it. They were charging me monthly for NOTHING for a while before I noticed. So keep an eye, they are very shady.
From The Editor
This Post Might Help: Cancelling a Merchant Account Without Paying a Fee
Absolutely disgusting. They closed my account, refuse to release funds and tell me that doing business with law enforcement and the Federal Government does not align with their policies.
Anti American Trash!
From The Editor
This Post Might Help: How to Make Your Payment Processor Release Your Money