What Is Authorize.net?

Authorize.net is a payment gateway owned by Visa that lets businesses securely accept credit card and electronic payments online. When a customer pays, the gateway authorizes the card, captures the funds, and settles the payment into the merchant's bank account. It serves eCommerce stores, subscription businesses, and other card-not-present merchants of every size.

One distinction up front: Authorize.net is a payment gateway, not a merchant account. To process payments through it, your business still needs a merchant account behind the gateway. That distinction matters most for high-risk merchants, and it is where we come in.

How Does the Authorize.net Payment Gateway Work?

The Authorize.net payment gateway handles online payment processing in three steps, approving or declining each transaction within seconds:

• Step 1: Authorization. Authorize.net checks that the customer's card is valid and has ample funds, then approves or declines the transaction almost instantly.
• Step 2: Capture. Money is captured from the customer's bank, placing a hold on the funds.
• Step 3: Settlement. Settlement transfers the money from the customer's bank to the merchant's bank.

Merchants also get a virtual dashboard behind a secure login. From it you can control every part of the gateway, including:

• Activating selected features
• Reviewing orders
• Tracking inventory with low inventory alerts
• Using a convenient invoice numbering system

What Is the AuthNet Gateway?

Many merchants shorthand the platform as the AuthNet gateway, and its feature set explains its staying power. Authorize.net offers various tools for high-risk merchants:

• Order tracking and management of sales, payments, and inventory
• Safe storage of customer payment data for future transactions
• Recurring billing options for subscription-based sales
• Easy gateway integration for WooCommerce (WordPress plugin)
• Support for numerous world currencies
• A card reader for processing payments at trade shows and markets

Online credit card processing is the gateway's core job. Authorize.net enables merchants to process cards globally, accepting major card brands and numerous world currencies, and every transaction — domestic or international — runs through the same authorization, capture, and settlement flow described above.

The Authorize.net Sandbox

The Authorize.net sandbox and test credit card features let merchants develop and test a website or software integration against the API, run fake transactions including refunds, and catch integration bugs before going live. Authorize.net also offers 24/7 customer support for gateway processing issues and API integration questions.

Is Authorize.net Safe and Legitimate?

Yes on both counts. Authorize.net is a legitimate, Visa-owned payment gateway, and it protects merchants and their customers with multiple layers of security:

• Encrypted data. User and transaction data is encrypted from checkout through settlement.
• Secure customer data storage. Customer payment details are stored on Authorize.net's secure servers, not yours, for safe repeat and recurring billing.
• Continuous security updates. The gateway is updated constantly to stay ahead of emerging threats.
• Card-not-present fraud prevention. Built-in screening helps flag and block suspicious eCommerce transactions in seconds — before they turn into chargebacks.

Because online payments happen without a physical card present, that last layer matters most for eCommerce merchants, and it is a large part of why high-risk businesses choose the gateway.

Is Authorize.net PCI Compliant?

Yes. Authorize.net complies with the Payment Card Industry Data Security Standard (PCI DSS) — the security requirements every business that stores, processes, or transmits cardholder data must meet.

This matters to you in two ways. First, transactions processed through the gateway are handled in a PCI compliant environment. Second, because Authorize.net encrypts and stores customer payment data on its own servers, sensitive card numbers never need to live on your website or database — which significantly reduces your own PCI compliance scope. You still have PCI obligations as a merchant; to work out which self-assessment questionnaire applies to your business, see our PCI compliance SAQ guide.

Is Authorize.net a Payment Processor or a Payment Gateway?

Authorize.net is a payment gateway, not a payment processor, and the difference matters when you set up payment acceptance:

• Payment gateway: the technology that securely captures payment data at checkout and transmits it for approval. This is what Authorize.net provides.
• Payment processor: the company that moves the money, communicating between the card networks, the customer's issuing bank, and your bank.
• Merchant account: the account where settled funds land before being deposited into your business bank account.

You need all three to accept card payments online. Authorize.net supplies the gateway, but it must be paired with a processing relationship and a merchant account behind it. For businesses in hard-to-place industries, that back end needs to be built for elevated risk — a high-risk payment gateway setup connected to a merchant account from a provider that understands your industry.

Is Authorize.net High Risk?

The gateway itself serves high-risk industries well. Authorize.net leads the high-risk payment gateway industry, having approved and facilitated over one billion dollars in payments, and unlike traditional processors such as Stripe and PayPal, it accepts the risks associated with high-risk industries.

But the gateway alone does not keep you processing. Stability depends on the merchant account underwritten behind it — when that account was not built for your industry, closures still happen, and it helps to know the steps to take if Authorize.net drops your merchant account before you need them.

As a reseller partner of Authorize.net, we deliver both sides of that equation:

• Competitive rates for high-risk gateway solutions
• Merchant account approvals — most merchants are approved within 24 hours
• Setup of the right high-risk payment gateway account for your business
• Seamless integration of the gateway into your website
• Experience placing merchants across high-risk industries with specific regulatory needs

How to Start Accepting Payments Through Authorize.net

Getting live on the Authorize.net gateway comes down to four steps:

• Step 1: Apply for a merchant account. The gateway needs a merchant account behind it. High-risk businesses should apply through a high-risk specialist — with us, most merchants are approved within 24 hours.
• Step 2: Set up the gateway. Once your merchant account is approved, your Authorize.net gateway account is configured and connected to it.
• Step 3: Integrate with your website. Use the WooCommerce plugin for WordPress stores or connect through the API, and test everything in the Authorize.net sandbox before launch.
• Step 4: Go live. Start accepting credit card payments online, with the virtual dashboard tracking every order, payment, and settlement.

Ready to begin? Apply for a high-risk merchant account with us and get an Authorize.net gateway solution matched to your industry.