Simple, transparent payment processing for small business

A payment gateway is the technology that securely transmits payment data between a customer, your website or terminal, and the payment networks. A merchant account is the bank account that holds your funds after a transaction is approved, before they transfer to your business bank account. Authorize.net's All-in-one plan includes both. If you already have a merchant account with a bank or payment provider, the Gateway Only plan connects Authorize.net to it without replacing your existing account.

No. A merchant account is a type of bank account that allows businesses to accept payments by payment cards, which are typically debit or credit cards. It’s similar to a credit line for your business to accept payments or issue refunds.

A merchant account is unique to you and your business. When you apply, the underwriter will look at your industry, your processing history (if any), your personal credit, your business’ creditworthiness, and other factors. Once approved, your business can start accepting payments.

PayPal is not a merchant account. It’s a third-party processor, and it aggregates all of its sellers’ accounts into one large merchant account. Because you are not the sole owner of this account, it cannot be used with the Authorize.net gateway.

Authorize.net is the superior choice for businesses focused on minimizing transaction costs and maximizing profit margins. While PayPal markets itself as "free to start," its higher per-transaction fees can quickly become a large expense. Authorize.net offers a lower cost per sale and a structure that saves significant money as you scale.

Here is why Authorize.net is the lower-fee option:

1. Significantly lower transaction rates

Every time you make a sale, you keep more money with Authorize.net. Below we breakdown different charges including how the credit card processing fees compare:

Authorize.net: Charges 2.9% + $0.30 per transaction (All-in-one plan).

PayPal: Charges 2.99% + $0.49 for standard card payments and 3.49% + $0.49 for PayPal Checkout transactions.

The impact: On a $100 sale using PayPal Checkout, you pay roughly $3.98 in fees. On Authorize.net, you pay only $3.20. Over hundreds of transactions, this difference adds up to thousands of dollars in lost revenue with PayPal.

2. Flexibility to lower rates further (Gateway only)

The true power of Authorize.net lies in its "Gateway only" option. Unlike PayPal, which locks you into their flat rate, Authorize.net allows you to connect to any merchant account provider.

This enables you to negotiate Interchange-Plus pricing, where you can often secure effective rates closer to 2.2% - 2.5%. PayPal does not offer this flexibility; you pay their retail rates regardless of your volume.

3. Lower fixed fees

Authorize.net charges a fixed fee of $0.30 per transaction, whereas PayPal charges $0.49. If you process smaller transactions (e.g., $15–$30 items), PayPal’s higher fixed fee eats a large percentage of your profit. Authorize.net is far more economical for high-volume, low-ticket merchants.

4. The monthly fee pays for itself

Because the transaction fees are lower than PayPal's, the savings cover the monthly fee very quickly. Once you process roughly $2,500–$3,000 in sales per month, the savings from Authorize.net’s lower rates exceed the cost of the subscription, making it the cheaper option overall.

Authorize.net accepts Visa, Mastercard, American Express, Discover, JCB, and Diners Club credit and debit cards, as well as Apple Pay, Google Pay, PayPal, and eChecks (ACH bank transfers). All major digital wallets are supported. eCheck processing is available as an add-on at 0.75% per transaction, significantly cheaper than credit card rates for large invoices or B2B payments.

ACH (eCheck) payments are typically the most economical option for online transactions, especially for B2B invoices or high‑ticket payments, because they avoid the interchange fees associated with credit cards.

Yes. Several payment methods are typically cheaper than credit cards because they avoid high interchange fees. The most cost‑effective options include ACH bank transfers (pay‑by‑bank), cash, debit cards, and sometimes mobile wallet payments when they run on lower‑cost debit or ACH rails. 
 

Cheaper payment methods and why they cost less

1. ACH / Bank Transfers (Pay‑by‑Bank)
What it is: Money moves directly between bank accounts through the ACH network.

Why it's cheaper: No card network involvement, so merchants pay much lower fees—often a small percentage or flat fee.

Best for: Large invoices, recurring payments, subscriptions, and B2B transactions.

2. Cash 
What it is: Physical payment with no processor involved.

Why it's cheaper: Merchants pay zero processing fees, and some offer cash discounts (often 2–4%).

Best for: In‑person purchases where fee avoidance matters.

3. Debit cards
What it is: Funds come directly from the customer’s bank account.

Why it's cheaper: Debit interchange fees are lower than credit card fees, reducing merchant costs.

Best for: Everyday consumer spending without accruing debt.

4. Mobile wallets (Apple Pay, Google Pay) 
What it is: Payments made through a smartphone using stored card or bank details.

Why it can be cheaper: Transactions that run over debit or ACH rails have lower fees, and strong security can reduce fraud‑related costs.

Best for: Fast, secure checkout in stores and online.

Every major payment platform—Authorize.net, Stripe, Square, and PayPal—authorizes transactions in seconds. The real difference is how quickly that money lands in your bank account. 

With Authorize.net, funds typically arrive within 2–3 business days after your daily batch settles. Your batch closes automatically once per day (default cut-off is 3:00 PM PST, though you can change this to any time that suits your business). From there, your Merchant Service Provider handles the transfer—so your exact deposit timeline may vary depending on who that is. Some MSPs offer next-day funding, so it's worth asking about when you sign up. 

One thing worth knowing: because Authorize.net uses a dedicated merchant account rather than pooling merchants together the way PayPal does, your funds follow a predictable path with a low risk of holds or unexpected delays. PayPal in particular is known for occasionally freezing funds—especially for new accounts or unusual activity—which can be a real headache for a small business managing cash flow. 

Yes. Authorize.net is a PCI DSS Level 1 Service Provider—the highest certification level in the payment industry. This means all transaction data is processed and stored according to the strictest security standards. Using Authorize.net significantly reduces your own PCI compliance burden, as sensitive cardholder data never touches your servers directly.

Authorize.net plans start at $25 per month. The All-in-One plan (merchant account + gateway) is $25/mo plus 2.9% + 30¢ per transaction. The Gateway Only plan is $25/mo plus 10¢ per transaction and a 10¢ daily batch fee. There are no setup fees, and no early termination fees for the gateway itself.

Yes, Authorize.net charges a $25 monthly fee for all plans. However, this fee covers a full suite of included features: fraud protection, recurring billing, digital invoicing, customer data management, 24/7 support, and AI-powered reporting—tools that would cost significantly more if purchased separately. For businesses processing more than ~$2,500/month, the included lower transaction rates typically offset the monthly fee.

Understanding merchant account fees and payment gateway costs is one of the first things small businesses need to tackle.

Here are the top merchant account fee types every business owner should know:
 

• Percentage‑based fees, applied to each transaction according to the card type used.
• Fixed per‑transaction fees, added to every authorization regardless of amount.
• Monthly service or gateway fees, used for payment gateway access and account maintenance.
• Chargeback handling fees, applied when customers dispute transactions.
• Batch or settlement fees, charged when daily transactions are submitted for funding.
• Cross‑border or international surcharges, added when accepting cards issued outside the business’s home country.
• PCI compliance fees, depending on the provider’s security program.

Together, these fees shape the total cost of payment acceptance and influence which pricing model is most appropriate for the business’s size, transaction volume, and industry.

There are no additional fees beyond the prices noted above. The plan prices automatically include the plan features with the exception of Account Updater and eCheck payments. Account Updater may incur additional costs, and the eCheck plan comes with additional services. 

The Authorize.net payment gateway does not have a contract or early termination fees. 

Here's a full breakdown of Authorize.net payment gateway fees.

No. The Authorize.net payment gateway has no contract requirement and no early termination fees. You can cancel your gateway subscription at any time without penalty. Note: if you applied for a merchant account through Authorize.net's All-in-one plan, your merchant account may have separate terms that can be reviewed at signup.

Once a day, Authorize.net takes all your transactions from the previous 24 hours and aggregates them into a “batch” which is then sent off to the processing networks. The Daily Batch Fee is the fee assessed for this process.

ACH payments (eChecks) typically involve low-percentage fees because they move funds directly between bank accounts rather than through the card networks. With Authorize.net, ACH processing follows a straightforward pricing structure designed to reduce costs for businesses handling recurring invoices, large payments, or B2B transactions.

Authorize.net gateway:
Monthly gateway fee: $25 

This supports secure transaction routing, reporting tools, and the combined ability to process both credit cards and eChecks from a single platform. 

Sign‑up fee: $0 
There is no initial cost to enable ACH/eCheck acceptance. 

eCheck transaction fee: 0.75% 
This low, percentage‑based fee applies to each ACH transaction. Because no fixed per‑transaction fee is charged, eCheck payments maintain predictable pricing even for small ticket sizes. 

Optional credit card fees: 
For businesses accepting credit cards alongside ACH, Authorize.net charges: 

$0.10 per credit card transaction 

$0.10 daily batch fee
Compared to card payments, the 0.75% eCheck rate is cheaper, especially for higher‑value payments where percentage‑based savings accumulate quickly. This structure makes ACH one of the most cost‑effective online payment options available to SMBs. 

Yes. ACH payments are considered highly secure for online businesses. They use bank‑level encryption, strict identity checks, and fraud‑monitoring requirements set by Nacha, the governing body of the ACH network. While no payment method is completely immune to fraud, ACH transactions include multiple layers of protection that significantly reduce risk when businesses follow recommended security practices. 
 

Why ACH payments are secure:
 

1. Bank‑level encryption
   ACH transactions use strong encryption and authentication protocols to protect account data during transmission and storage.
   
   
   
2. Nacha security requirements
   All participants in the ACH network must follow Nacha’s rules for data protection, validation, and secure processing. These rules are mandatory and updated regularly.
   
   
   
3. Tokenization of bank details
   Many payment platforms replace sensitive bank information with secure tokens. This reduces exposure of actual account numbers and lowers the risk of data theft.
   
   
   
4. Federal legal protections
   ACH payments fall under the Electronic Fund Transfer Act (EFTA), which provides consumers with protection against unauthorized withdrawals and outlines processes for dispute resolution. 

ACH payments (eChecks) typically involve low-percentage fees because they move funds directly between bank accounts rather than through the card networks. With Authorize.net, ACH processing follows a straightforward pricing structure designed to reduce costs for businesses handling recurring invoices, large payments, or B2B transactions.

Authorize.net gateway:
Monthly gateway fee: $25 

This supports secure transaction routing, reporting tools, and the combined ability to process both credit cards and eChecks from a single platform. 

Sign‑up fee: $0 
There is no initial cost to enable ACH/eCheck acceptance. 

eCheck transaction fee: 0.75% 
This low, percentage‑based fee applies to each ACH transaction. Because no fixed per‑transaction fee is charged, eCheck payments maintain predictable pricing even for small ticket sizes. 

Optional credit card fees: 
For businesses accepting credit cards alongside ACH, Authorize.net charges: 

$0.10 per credit card transaction 

$0.10 daily batch fee
Compared to card payments, the 0.75% eCheck rate is cheaper, especially for higher‑value payments where percentage‑based savings accumulate quickly. This structure makes ACH one of the most cost‑effective online payment options available to SMBs. 

Upon proper completion of the application, your Authorize.net Payment Gateway account is approved automatically. However, in order to accept credit cards, you must have a merchant account, and approval for that account can be immediate or take from one to five business days or more depending on several factors, including industry, credit history and responsiveness.

If you have an existing merchant account, you can update your gateway with the parameters provided from your merchant provider and be ready to transact within minutes.

If you are applying for our "all-in-one" solution where we help to provide you with the merchant account, the approval process could be as quick as one hour if the application is "auto-approved".

The Merchant Service Provider (MSP) facilitates transferring funds to your bank account. Funding time can vary depending on your MSP. The industry average funding period is between three to five business days.