Authorize.Net Fees Overview

Unraveling the Fine Print: Overview of All Authorize.Net Fees

Authorize.Net is a payment gateway that facilitates online and in-person transactions for businesses of all sizes. The service charges various fees based on the features, transaction types, and additional services used by the merchant. Here’s an extensive overview of all potential fees associated with Authorize.Net.

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1. Account Setup and Monthly Fees

Authorize.Net charges monthly and setup fees for using its payment gateway services.

A. Setup Fees

1. Standard Setup Fee

   • Cost: Typically $49 (one-time fee).

   • Applies to most merchants when they first set up their Authorize.Net account.

2. Additional Fees for Advanced Features

   • Some advanced features, like the Customer Information Manager (CIM) or Advanced Fraud Detection Suite (AFDS), may incur extra setup fees.

   • Cost: Varies, typically around $25–$300, depending on the service.

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B. Monthly Fees

1. Gateway Monthly Fee

   • Cost: $25/month.

   • This fee is charged for maintaining the gateway service for payment processing.

2. Virtual Terminal (for manual processing)

   • Cost: Included with the monthly fee if used within the standard service.

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2. Transaction Fees

Authorize.Net charges fees per transaction based on the processing volume and payment method.

A. Transaction Processing Fees

1. Basic Transaction Fee (Pay-as-you-go)

   • Cost: 2.9% + $0.30 per transaction for credit card payments.

   • For eCheck payments, the fee is typically 1.5% + $0.25 per transaction.

2. Advanced Pricing (for higher volume merchants)

   • Cost:

     • Merchant Account Fee: $0.10–$0.15 per transaction.

     • Transaction Fee: 2.4%–2.6% per transaction (based on agreement with merchant).

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B. Authorize.Net Payment Gateway Transaction Fees (for Credit and Debit Cards)

1. Flat-rate Pricing

   • For businesses that prefer flat-rate pricing, Authorize.Net offers a Pay-As-You-Go pricing model.

     • Cost: 2.9% + $0.30 per transaction for U.S.-based businesses.

2. Interchange-Plus Pricing

   • For higher-volume businesses, interchange-plus pricing may be a more cost-effective model.

     • Cost: Varies based on the interchange fees and merchant processing volume.

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C. Refund and Chargeback Fees

1. Refund Fee

   • Cost: Free.

   • Authorize.Net does not charge a fee for processing refunds, though the credit card issuer may apply their own fees.

2. Chargeback Fee

   • Cost: $25 per chargeback.

   • A chargeback fee applies if a customer disputes a transaction and requests a refund from their bank.

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3. Additional Service Fees

Authorize.Net offers several value-added services, which come with their own fees.

A. Customer Information Manager (CIM)

• Cost: $10/month.

• The CIM service securely stores customer data, such as billing and shipping information, for repeat transactions.

B. Advanced Fraud Detection Suite (AFDS)

• Cost: $29.95/month.

• AFDS helps businesses manage and prevent fraudulent transactions by setting custom filters and security settings.

C. Recurring Billing

• Cost: Included with the gateway.

• If you want to implement subscription-based or recurring billing, this feature is included at no additional charge.

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D. Tokenization

• Cost: Typically $10/month.

• Tokenization allows businesses to store sensitive payment data securely, replacing credit card details with a token.

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E. Virtual Terminal

• Cost: Free with the gateway.

• Allows businesses to manually enter transactions without requiring a physical point-of-sale (POS) terminal.

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F. Payment Methods

1. Mobile Payments (Apple Pay, Google Pay, etc.)

   • Cost: Typically the same as standard credit card processing fees (e.g., 2.9% + $0.30 per transaction).

2. eCheck Processing

   • Cost: 1.5% + $0.25 per transaction.

3. ACH (Automated Clearing House) Payments

   • Cost: 0.75% per transaction (minimum $0.25, maximum $5 per transaction).

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4. Advanced Features Fees

For merchants who require additional functionality, such as integration with third-party software, advanced reporting, or specialized payment methods, there may be extra fees.

A. Payment Gateway Integration

• Cost: Varies based on complexity and integration, usually a one-time fee of $200–$500, depending on the complexity.

B. Fraud Prevention & Security Tools

1. 3D Secure (for added authentication)

   • Cost: Free, but some card issuers may apply fees.

2. Secure Customer Authentication (SCA)

   • Cost: Free for businesses in the EU, but charges may apply depending on the country.

3. Chargeback Protection (additional coverage)

   • Cost: Typically 0.40%–0.70% of sales, depending on transaction volume.

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5. Multi-Currency Processing Fees

Authorize.Net allows businesses to accept payments in multiple currencies. However, this feature comes with its own costs.

A. Multi-Currency Gateway Fee

• Cost: Additional 1%–2% per transaction for cross-border transactions and currency conversion fees.

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6. International Transaction Fees

If you process payments from international customers, Authorize.Net charges fees related to the currency and location.

A. International Processing Fee

• Cost: 1.5%–2.5% of the transaction amount, depending on the currency and country of the cardholder.

B. Currency Conversion Fees

• Cost: 1%–3% for converting foreign currencies into the merchant’s local currency.

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7. Annual Fees

Some services may have annual fees attached.

A. Annual Gateway Fee

• Cost: $99/year.

• This fee is typically charged to maintain the Authorize.Net gateway service.

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8. Miscellaneous Fees

1. Account Termination Fee

   • Cost: $25–$50.

   • This fee applies if the merchant closes their Authorize.Net account or if the account is terminated for non-compliance.

2. Returned Payment Fee (for failed ACH debits)

   • Cost: $15 per returned payment.

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Summary of Typical Costs

Fee Type	Estimated Cost
Setup Fee	$49 (one-time)
Monthly Gateway Fee	$25/month
Transaction Fee (Credit Card)	2.9% + $0.30 per transaction
Transaction Fee (eCheck)	1.5% + $0.25 per transaction
Refund Fee	Free
Chargeback Fee	$25 per chargeback
CIM (Customer Information Manager)	$10/month
Advanced Fraud Detection Suite	$29.95/month
Recurring Billing	Free
Tokenization	$10/month
Virtual Terminal	Free (included with gateway)
ACH Payments	0.75% per transaction (min. $0.25, max. $5)
Mobile Payments (Apple Pay, etc.)	2.9% + $0.30 per transaction
ACH Payment Processing Fee	0.75% per transaction (min. $0.25)
International Transaction Fee	1.5%–2.5% per transaction
Multi-Currency Fee	1%–2% per transaction
Account Termination Fee	$25–$50
Returned Payment Fee	$15 per returned payment

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Authorize.Net is known for its reliable service and range of features. While its fees are relatively standard for payment gateways, businesses should carefully consider transaction fees, setup charges, and optional services to determine the most cost-effective pricing structure based on their volume and service needs.