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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 also powers e-check payments, phone payments, and monthly billing.
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.
Authorize.net’s payment gateway is designed to integrate seamlessly with a variety of e-commerce platforms and shopping carts. This ensures that businesses can offer customers a smooth and secure online shopping experience, with support for one-time and recurring payments.
For merchants who don’t need a physical card terminal or who want to accept payments over the phone or via mail order, Authorize.net offers a virtual terminal. This web-based application allows businesses to process transactions securely from any device with internet access, providing flexibility and convenience for various types of businesses.
Advanced Fraud Detection Suite
To help protect businesses from fraudulent transactions, Authorize.net provides its Advanced Fraud Detection Suite (AFDS). This suite of customizable filters and tools enables merchants to identify and block suspicious transactions, reducing the risk of chargebacks and fraud-related losses.
Mobile Payment Solutions
Authorize.net’s mobile payment solutions allow businesses to accept payments on-the-go using mobile devices. The platform offers a mobile app and card reader that can be used with smartphones and tablets, making it easy for merchants to process transactions securely and efficiently at events, pop-up shops, or during in-person consultations.
Recurring Billing and Subscription Management
For businesses that rely on regular billing or offer subscription-based services, Authorize.net provides a recurring billing and subscription management feature. This allows merchants to set up and manage automatic billing schedules for customers, ensuring a steady cash flow and more efficient invoicing processes.
Developer Tools and API
Authorize.net offers developer tools and a comprehensive API to enable businesses to create custom payment solutions tailored to their unique needs. Developers can leverage the API to integrate the payment gateway with websites, mobile apps, or custom software, providing a seamless and secure payment experience for customers.
Authorize.net provides reliable customer support through phone, email, and live chat, ensuring merchants have access to assistance when needed. The platform’s knowledge base also offers helpful resources and guides for troubleshooting common issues and maximizing the benefits of the payment gateway.
Location & Ownership
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. Bob Donahue is the CEO and Alex Burgin is the vice president of Authorize.net.
Table of Contents
- Costs & Contract: Offers variable contract terms that depend on the reseller’s pricing for its payment gateway and…
- Complaints & Service: Has received more than 100 public complaints in regards to…
- BBB Rating: Has been accredited by the BBB since 2009 and has an “A+” rating but has received 73 complaints and 19 reviews regarding…
- Sales & Marketing: Partnered with a large number of resellers and has received some complaints about its…
Authorize.net Customer Complaints & Reviews
Here's What Users Think
Total Online Complaints
Live Customer Support
Most Common Complaint
Resellers are the Issue
We have found a few dozen negative Authorize.net reviews on consumer protection websites like Ripoff Report, with most of these complaints occuring due to poor customer service, feature malfunctions, fund-holds, billing disputes, or unexpected charges. While some Authorize.net reviews claim the company is a scam operation, it is apparent that several merchants were confused about the fact that Authorize.net was not the same company as their credit card processor. These complainants were unsure which company was to blame for the problems they were having. This confusion can usually be traced back to resellers who did a poor job of explaining the relationship between the credit card processor and the Authorize.net payment gateway. If you have your own Authorize.net review to make, please do so in the comments below.
We have not found any outstanding class-action lawsuits or FTC complaints filed against Authorize.net. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Authorize.net Customer Support Options
Authorize.net offers an FAQ/troubleshooting-type customer support page on its website, and it also lists an email address and an 877- number for client support, which is available 24/7. It makes some mention of online chat support, but clients must login to use this service.
Authorize.net Customer Service Numbers
- (877) 447-3938 – Toll-Free General Customer Service
- +44 (0) 203 564 4844 – UK/Europe Customer Service
- +61 1800 019 932 – Australian Customer Service
- (888) 437-0481 – Partner Support
- +44 (0) 203 564 5370 – UK/Europe Partner Support
- (866) 682-4131 – Affiliate Support
- 44 (0) 203 564 5370 – UK/Europe Affiliate Support
Other Support Options
- Live chat support
Authorize.net’s many support options compare favorably to top-rated payment processors for customer service.
Authorize.net BBB Rating and Report
Our Better Business Bureau Profile Assessment
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
Over 70 Complaints
Authorize.net has been accredited with the Better Business Bureau since 2009 and currently has an “A+” despite 73 complaints filed against the company within the last 36 months.
What Merchants Say
In addition to the 73 complaints filed with the BBB against the company, Authorize.net has received 19 informal reviews on its profile. All but 2 of those 19 reviews were negative. The most recent negative review describes a client having difficulty processing payments:
My company had an extremely negative experience with Authorize.net. We reported 4 fraudulent e-check transactions to the company. Since it was too late to void the e-checks, Authorize.net advised us to issue refunds before the money cleared. 3 of the e-checks were charged-back due to insufficient funds. One e-check was both charged-back and refunded, resulting in a deficit in our available funds. Authorize.net had never received the funds from the bank, but mistakenly transferred the refunded amount from our existing pool of funds to the originating bank. Rather than return the funds to our account, Authorize.net advised our company to try to charge the same bank account again. The transaction cleared Authorize.net and the funds were transferred to our bank account. Later, Authorize.net reported that this transaction was charged-back due to insufficient funds. They are now attempting to retrieve this money back from us.Our transaction records prove Authorize.net was at fault. Authorize.net has refused to take responsibility for their mistake and refused to retrieve the money from the originating bank account. Overall, this negative experience shows a lack of accountability and responsibility on behalf of Authorize.net due to the mishandling of fraudulent transactions and subsequent errors in their refund and charge-back processes. Therefore, potential users of Authorize.net may want to consider this experience when deciding whether to use the company’s services.
Clients who find themselves in this situation may find our guide on How to Report Bad Credit Card Processors useful if they have exhausted all other options.
A “B” Performance Overall
The moderate complaint rate is mitigated somewhat by the company’s large size, but due to increasing proportion of negative reviews, we have adjusted its rating to a “B.”
Authorize.net Fees and Rates
A Closer Look at the Contract
Monthly & Annual Fees
2.9% + $0.30
Authorize.net offers different pricing options. Depending on their needs, a client can choose from the company’s all-in-one option, payment gateway, or enterprise solutions. Companies with existing merchant accounts are best suited for Authorize.net’s gateway-only plan but should contact their existing service provider to compare pricing. Businesses that require only Authorize.Net’s payment gateway will be charged a per-transaction fee of $0.10 and a daily batch fee of $0.10 in addition to the $25 monthly gateway fee.
However, pricing will likely differ from these figures for clients choosing the company’s all-in-one option. As a baseline, the company charges a $25 monthly gateway fee and a 2.9% plus $0.30 per-transaction fee. Since Authorize.net relies on resellers who can set prices as they please, pricing is very negotiable and many of the fees can be greatly reduced or eliminated. The company also reserves interchange-plus pricing as a part of its enterprise solutions package. Authorize.net’s rates, while transparent, are not competitive with those of the cheapest merchant accounts.
Be Mindful of Varying Contract Terms
Many of the complaints filed publicly against the company (some of which are in the comments section below) report confusion over the fact that a third-party reseller was actually offering the services of Authorize.net even though the client was under the impression that the reseller itself had built a proprietary payment gateway. While these problems are unrelated to the actual Authorize.net contract, it is worth noting that contract terms can vary, and resellers are not obligated to disclose which figures they have altered from the original suggested retail price. See the Authorize.net Service Agreement. Due to the company’s reliance on resellers, lease terms for POS terminals will vary based upon the third party being offering the merchant contract.
Authorize.net Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
Uses Independent Resellers
Discloses All Important Terms
Clear Pricing Breakdown
Authorize.net’s website provides the suggested retail price of its services, and it clearly states that resellers may alter the costs as they see fit. The company’s pricing breakdown is complete with explanations of each term and is easy to access from the main page. As explained on their website, the Authorize.net payment gateway does not have a contract itself or early termination fees.
Because Authorize.net’s services are resold by a huge number of other businesses, the figures provided on its actual site are subject to change, but the company is being helpful by offering a suggested cost for clients to use in potential negotiations and is therefore awarded an “A.” However, if you suspect that Authorize.net is charging you undisclosed fees, we recommend seeking a third-party statement audit to eliminate hidden costs.