Understanding the Costs Associated With Authorizenet
On an average 100 million users across the globe browse on the internet every day. Among these, almost 20million people are interested in e-shopping. In fact, e-commerce has revolutionized the field of trade and commerce by virtually eliminating all the geographical borders and uniting the world into one single market place. If you wish to convert your online business into a successful venture, one aspect that must be given prime importance is the method in which shoppers can make their payment on your site. One effective solution is signing up for an authorizenet account, a online payment gateway provider service through which you can now accept and process credit card and electronic check payments on your website anytime and anywhere.
Interestingly, authorizenet account is not a free service. Merchants need to pay certain fee so as to avail the benefits. Below are listed some of the charges associated with setting up and maintenance of authorize.net account.
- Setup Fees: This is a one-time fee a merchant needs to pay at the time of submitting an application for opening an account with authorize.net. Setup fee is usually around $149.
- Gateway Access Fee: Once a merchant establishes an account with authorize.net, he/she has to pay a gateway access fee every month for utilizing the services of the payment gateway provider. This fee is around $20 per month.
- Credit Card Transaction Fee: This is a per-item based fee paid by the merchant on each credit card transaction happening through the payment gateway. These transactions can include the authorization, processing, refunds, approvals, declines, and those that are submitted within the payment gateway. These charges can be around $0.10 per each transaction.
- Late Payment Fee: This is a miscellaneous fee usually charged to merchant whenever they delay paying their monthly service fees. Another example of miscellaneous fee charged by authorize.net is the service reactivation fee to be paid by merchants in order to reactivate their closed payment gateway account.
All these above charges are standard fees applicable to every payment gateway account with authorize.net. Apart from these, there are certain other charges that might get added depending on the value added products chosen by the merchant. These charges include:
- Automated Recurring Billing Fees – Automated recurring billing service is particularly useful for merchants when they have to manage recurring transactions. This facility enables merchants to be much more productive, improve billing efficiency and generate customer loyalty. For availing this service, the merchant needs to pay a monthly fee to authorizenet.
- Fraud Detection Suite Fees – Fraud detection suite is another value-added service provided to online merchants with potentially higher risk of encountering fraudulent transactions. Under this service, all the transactions are duly filtered and screened, thereby helping merchants identify, manage and prevent online frauds and suspicious transactions. Again, a fraud detection suite fee needs to be paid monthly.
- Also, merchants need to pay a monthly fee for availing 24×7 customer support and technical service.
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