Authorize.Net

Authorize.Net
Name	Authorize.Net
Foundation	0 1996
Location	San Francisco, California, United States
Key people	Jeff Knowles (Co-founder)
Industry	Payment gateway, Financial technology
Parent	Visa Inc.
Website	https://www.authorize.net/

Authorize.Net. It is a prominent payment gateway service provider, enabling merchants to accept credit card and electronic check payments through websites and in-store. Founded in 1996, it processes transactions for a vast network of small and medium-sized enterprises as well as larger corporations. The platform is now a subsidiary of the global financial services corporation Visa Inc., operating as a core component of its Visa Merchant Solutions portfolio.

Overview

The core function of the platform is to act as a secure intermediary between a merchant's website or point of sale system and the broader financial processing network. It authorizes credit card transactions in real-time by communicating with the card-issuing bank via payment processors like First Data and Global Payments. This service is critical for e-commerce businesses, allowing them to securely accept payments from major card networks including Visa, Mastercard, American Express, and Discover. By handling the complex technical and security aspects of payment data transmission, it allows merchants to focus on their core operations.

History

The company was established in 1996 by Jeff Knowles and others during the early boom of Internet commerce. It quickly became a leader in providing accessible online payment solutions. In 2004, the growing firm was acquired by Lightbridge, Inc., a provider of transaction processing services. Later, in 2010, it became part of CyberSource Corporation, a major player in payment management systems. The acquisition of CyberSource by Visa Inc. later that same year brought the gateway under the umbrella of the global payment card network. This integration has allowed it to leverage Visa's extensive resources and global reach.

Features and services

Its suite of tools includes advanced fraud detection systems like Address Verification Service and Card Code Verification, which help reduce chargebacks. The platform supports a wide array of payment methods, including digital wallets like Apple Pay and Google Pay, along with recurring billing for subscriptions. Merchants can utilize virtual terminals for manual entry and detailed reporting dashboards for transaction analysis. Additional services often include customer information manager tools to securely store payment profiles and seamless integration with major shopping cart software such as Magento and Shopify.

Integration and technology

Merchants can connect to its services through several methods, including direct integration using its Application Programming Interface for custom-built platforms. Simplified integration is offered via hosted payment forms that redirect customers to a secure payment page. The technology is built to support high-volume transaction environments with reliable uptime and is compatible with numerous e-commerce platforms and accounting software packages like QuickBooks. This flexibility has made it a staple for businesses using platforms ranging from WordPress with WooCommerce to enterprise systems like Oracle NetSuite.

Security and compliance

The platform maintains a high level of security, being certified as a Level 1 service provider under the Payment Card Industry Data Security Standard. It employs robust encryption protocols, including Transport Layer Security, to protect data in transit. The system is designed to help merchants avoid storing sensitive cardholder data on their own servers, thereby reducing their PCI DSS compliance scope. Continuous security monitoring and adherence to regulations set by bodies like the Federal Financial Institutions Examination Council are central to its operations.

Competitors and market position

Within the competitive payment processing industry, it faces significant rivalry from other major gateways and processors. Key competitors include Stripe, PayPal (with its Braintree subsidiary), Square, and Adyen. Its position, backed by the infrastructure of Visa Inc., often appeals to established businesses seeking stability and deep integration with traditional merchant account providers. The market is also shaped by the offerings of large financial institutions like JPMorgan Chase and technology firms such as Fiserv, which provide competing all-in-one payment solutions.

Category:Payment systems Category:Financial technology companies Category:Companies based in San Francisco Category:Visa Inc.