Authorize.Net

What Authorize.Net does

Authorize.Net is a U.S.-based payment gateway founded in 1996 and operated as a wholly owned subsidiary of Visa Inc. since Visa's 2007 acquisition of CyberSource Corporation. The platform connects merchants to payment processors and card networks, handling authorization, capture, and settlement of credit card, debit card, eCheck (ACH), and digital wallet transactions across online, in-person, and phone channels for an installed base of more than 445,000 merchants processing over one billion transactions and $149-200 billion in payments annually.

Name

Authorize.Net

Legal name

Authorize.Net

Website

https://authorize.net

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Authorize.Net, founded in 1996 and a wholly owned Visa subsidiary since 2007, is a payment gateway serving more than 445,000 SMB merchants with multi-channel credit card, ACH, and digital wallet processing, fraud protection, and recurring billing tools.

Ownership category

akta.pro rank

Product category

Payment Gateway

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232)

SIC

Finance Services (6199)

akta.pro primary industry

Bank-to-Bank Transfers & Pay-by-Bank (Consumer & Merchant) (FSAMAFAC)

akta.pro secondary industry

Embedded Payments (Pay-ins, Pay-outs, Wallets) (FSAGALAB)

Keywords

• Payment gateway services
• Credit card processing
• Online payment processing
• ECommerce payment solutions
• Merchant payment gateway

Headquarters

HQ city

American Fork

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Transaction Processing Fees: Percentage-based fees plus fixed per-transaction fees charged on every payment processed. All-in-one plan: 2.9% + $0.30 per transaction. Gateway only: $0.10 per transaction plus $0.10 daily batch fee.
2. Monthly Gateway Subscription: Monthly service fee for gateway access and account maintenance. All-in-one plan: $25/month including merchant account.
3. eCheck/ACH Processing: Low percentage fee (0.75%) on ACH transactions processed through the bank's payment rails, with no fixed per-transaction fee.
4. Account Updater: Optional paid feature with per-update charges for automatic card data updates, with 20-35% of cards typically updating in the first month.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels6 records

Core offering

Authorize.Net is a payment gateway platform that connects merchants to payment processors and card networks, enabling authorization, capture, and settlement of credit card, debit card, eCheck (ACH), and digital wallet transactions. The platform supports online, in-person (card reader and Tap to Pay), phone/mail order (Virtual Terminal), and mobile payment acceptance channels, with add-on capabilities for recurring billing, digital invoicing, customer profile management, automatic card updates, and rules-based fraud screening.

Product overview

Authorize.Net is a payment gateway platform owned by Visa that offers a comprehensive suite of payment processing solutions for small and mid-sized businesses. The core offering consists of Online Payments (eCommerce), Mobile Point of Sale, Virtual Point of Sale, Phone Payments, and eCheck/ACH Payments. These are supported by add-on modules including Digital Invoicing, Simple Checkout, Advanced Fraud Detection Suite (AFDS), Account Updater, Recurring Payments (ARB), and Customer Information Manager (CIM). The platform is offered through three pricing tiers: All-in-One (includes merchant account and gateway), Gateway Only, and Gateway + eCheck. Developer tools including APIs and SDKs (iOS, Android) enable custom integrations. The reimagined platform now includes AI-powered features like the Ask Anet conversational support agent and enhanced fraud protection.

Differentiator

Problem solved

Functional benefit

Products and services

• Online Payments (eCommerce) Accept credit card payments, digital wallets (Apple Pay, Google Pay, PayPal), and eChecks through websites, hosted payment forms, or full API integration. Designed for online merchants and eCommerce businesses needing secure card-not-present transaction processing.
• Mobile Point of Sale (mPOS) Accept secure mobile payments using smartphones with support for QR codes, digital wallets, and tap-to-pay options. Includes the Authorize.Net 2.0 mobile app for SMBs and merchants accepting payments on the go.
• Virtual Point of Sale (VPOS) Turn a computer into a virtual point of sale by connecting a compatible card reader. Supports EMV chip cards, contactless tap-to-pay, and EMV transactions on First Data Nashville and TSYS platforms for in-person retail environments.
• Phone Payments (Virtual Terminal) Process phone, mail, and fax orders securely through a web browser-based Virtual Terminal with batch upload capability for multiple transactions. Designed for merchants taking manual orders over the phone or by mail.
• eCheck/ACH Payments Accept electronic check payments directly from customers' bank accounts through the ACH network. Lower cost alternative to credit cards capped at 0.75% per transaction with secure bank-level encryption and Nacha compliance. Available only for U.S.-based businesses.
• Recurring Payments (Automated Recurring Billing / ARB) Automated Recurring Billing (ARB) accepts and submits monthly recurring or installment payments via credit card or direct bank account (eCheck). Supports trials, customizable billing schedules, and subscription management for merchants with subscription-based or recurring revenue models.
• Digital Invoicing Send custom digital invoices to customers via email with secure online payment links. Supports credit cards, debit cards, eCheck, Apple Pay, Google Pay, and PayPal through PCI-DSS-compliant hosted invoice pages.
• Simple Checkout Add Buy Now or Donate buttons to websites, generate shareable payment links, or create QR codes for fast contactless payment. Enables merchants and nonprofits to accept payments without a full website.
• Advanced Fraud Detection Suite (AFDS) Rules-based fraud protection with 13 customizable filters for transaction thresholds, velocity settings, and country limitations. Includes actions: hold for review, authorize and hold, report and process, or decline. Award-winning fraud protection included at no extra cost on all plans.
• Account Updater Automatically updates stored card details in CIM profiles and ARB subscriptions when customer card information changes, with 20-35% of cards typically updating in the first month followed by 7-8% monthly. Reduces failed recurring payments and lost revenue.
• Customer Information Manager (CIM) Securely stores customer payment details in a PCI-compliant vault, enabling returning customers to checkout without re-entering card information. Supports multiple payment methods and shipping locations per customer profile.
• Authorize.Net API and SDKs Developer tools including APIs, SDKs, client libraries, and documentation for integrating digital payments into any application. Supports native iOS and Android SDKs, mobile-optimized responsive hosted payment forms, simplified PCI compliance with secure data transmission and storage on Authorize.Net servers, integrated customer profiles, and digital wallet support.
• Tap to Pay Transforms NFC-enabled smartphones (iPhone and Android) into secure contactless payment terminals with no extra hardware required. Supports tap-to-pay acceptance for merchants needing on-the-go card acceptance.

Quantifiable outcome

• Saves businesses significant money compared to PayPal: on a $100 sale, PayPal charges ~$3.98 while Authorize.Net charges $3.20
• +4 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration18 records

AI capability4 records

Feature10 records

Partnerships

Twelve partnerships are on record, tiered core, major and minor.

• CybersourcecoreTechnology or IntegrationCybersource is a sibling company under Visa alongside Authorize.Net, providing additional payment solutions. Authorize.Net recommends Cybersource for businesses requiring international locations beyond the U.S., Canada, U.K., Europe, and Australia.
• TSYSmajorChannel Partner/ Reseller/ DistributorTSYS has been an Authorize.Net Preferred Reseller for more than 10 years, processing tens of billions of dollars in sales volume for approximately 650,000 merchants and financial institution partners annually.
• Chase Payment SolutionsmajorChannel Partner/ Reseller/ DistributorChase Payment Solutions is an Authorize.Net Preferred Reseller offering competitive rates, secure payment processing, 24/7 U.S.-based customer support, and no annual fees for merchants.
• Wells FargomajorChannel Partner/ Reseller/ DistributorWells Fargo offers Authorize.Net payment processing with flexible solutions for online, onsite, or mobile acceptance, integrated with Wells Fargo banking services.
• Bank of America Merchant ServicesmajorChannel Partner/ Reseller/ DistributorBank of America Merchant Services helps clients of all sizes manage and grow their businesses by enabling great commerce experiences through Authorize.Net integration.
• ShopifymajorTechnology or IntegrationShopify is a certified integration partner allowing merchants to connect Authorize.Net payment gateway directly from their Shopify store settings for seamless checkout.
• WooCommercemajorTechnology or IntegrationWooCommerce offers an Authorize.Net integration plugin enabling WordPress-based online stores to process payments through the Authorize.Net gateway.
• BigCommercemajorTechnology or IntegrationBigCommerce provides Authorize.Net integration for merchants requiring enterprise-level eCommerce capabilities with secure payment processing.
• Adobe CommercemajorTechnology or IntegrationAdobe Commerce (Magento) provides Authorize.Net integration for cloud-native eCommerce with high-performance, scalable online stores.
• InstaCódigominorStrategic or Co-development PartnerInstaCódigo integrated with Authorize.Net to promote blockchain and smart contract technologies for digital trust, with applications in real estate asset tokenization and supply chain transparency.
• ElavonmajorChannel Partner/ Reseller/ DistributorElavon is a leading payment processing partner integrated with Authorize.Net, leveraging innovative technology for online, mobile, and in-person payments.
• WorldpaymajorChannel Partner/ Reseller/ DistributorWorldpay is an Authorize.Net preferred reseller offering simple in-store, on-the-go, or online payments with security and insights tools.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Stripe: Stripe is a leading API-first payment gateway and online payment processor serving SMBs through enterprise, with developer-centric APIs, hosted checkout, and fraud tools (Radar). Most directly comparable to Authorize.Net on online payment gateway functionality, though Stripe is generally perceived as more modern and developer-friendly.
• Braintree: Braintree (owned by PayPal) is a developer-focused online payment gateway serving SMBs through enterprise with vault, recurring billing, and global merchant of record services. Directly competes with Authorize.Net's API, CIM (vault), and ARB (recurring) product suite for online merchants.
• Square (Block): Square provides multi-channel payment acceptance (in-person, online, mobile Tap to Pay, ACH) targeted at SMBs with simple bundled pricing. Overlaps directly with Authorize.Net's SMB multi-channel strategy and recently launched Tap to Pay on iPhone/Android, mirroring Square's longstanding mobile POS capabilities.
• PayPal: PayPal operates PayPal Checkout and Braintree, competing head-to-head with Authorize.Net in hosted checkout and merchant gateway services. Authorize.Net's own marketing explicitly compares its pricing to PayPal (~$3.98 vs $3.20 on a $100 sale), making PayPal a direct head-to-head competitor for SMB and online merchant share.
• Adyen: Adyen is a global unified payment gateway combining gateway, acquiring, and fraud (RevenueProtect) into a single platform targeting mid-market and enterprise merchants. Comparable to Authorize.Net's gateway + fraud suite offering but with broader international reach that Authorize.Net explicitly lacks.

Broad incumbents

• Worldpay: Worldpay is one of the largest global payment processors, offering gateway, acquiring, and merchant services across in-person, online, and omnichannel. Authorize.Net lists Worldpay as a preferred reseller, reflecting their hybrid competitor-partner relationship across SMB and enterprise segments.
• Global Payments: Global Payments is a large diversified payments and software company offering gateway, acquiring, and integrated POS solutions to SMB and enterprise merchants. Overlaps with Authorize.Net in SMB payment gateway and omnichannel processing.
• Fiserv: Fiserv is a major merchant acquiring and gateway provider (including the legacy First Data platform on which Authorize.Net VPOS runs). Competes with Authorize.Net in SMB merchant acquiring and omnichannel payment processing, and supplies the underlying processor for some Authorize.Net flows.

Emerging players

• 2Checkout (Verifone): 2Checkout (now part of Verifone, branded Vertima) provides online payment gateway and merchant of record services for SMBs and digital goods sellers. Listed in Authorize.Net's own partner ecosystem alongside Zoho integrations, and competes for similar digital SMB merchants with global ambitions.
• Checkout.com: Checkout.com is a modern API-based payment gateway focused on global enterprise and high-growth digital merchants, with strong international coverage. Comparable to Authorize.Net's gateway and international ambitions, though typically skews larger than Authorize.Net's SMB core.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat7 records

Key risks5 records

Key highlights3 records

Customer concentration

• Xx.com/AuthorizeNet
• YouTubeyoutube.com/user/AuthorizeNet
• Facebookfacebook.com/Authorize.Net
• LinkedInlinkedin.com/company/authorize-net

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Authorize.Net