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Top Tips for Using the Authorize.net Gateway for Online Payments with Shopify

Published On: July 25th, 2024

Integrating Authorize.net gateway with E-commerce Platforms

As e-commerce evolves, ensuring your payment systems function flawlessly with your online store is paramount. For many Shopify users, Authorize.Net serves as the backbone for secure and reliable payment processing. Whether due to changes in settings, updates, or the need for reconfiguration, reconnecting Authorize.Net with Shopify can be necessary. In this Vector Payments guide, we’ll walk you through the steps to ensure your payment gateway setup is both seamless and efficient.

Why Connect Authorize.Net with Shopify?

Integrating Authorize.Net with Shopify allows you to leverage one of the most trusted payment gateways to provide a smooth transaction experience for your customers. This integration supports various payment methods, including credit and debit cards, and offers advanced security measures to protect against fraud.

Understanding the Importance of Authorize.Net for Your Shopify Store

Authorize.Net is a leading payment gateway that offers services for safe and reliable transaction processing. By integrating Authorize.Net with Shopify, you can enhance your e-commerce operation through advanced fraud protection, detailed transaction reporting, and the ability to accept a variety of payment methods including major credit cards, debit cards, and digital payments like Apple Pay and PayPal.

Key Takeaways

Authorize.net is a versatile payment gateway supporting multi-currency transactions and various payment methods, simplifying PCI DSS compliance through features like card tokenization.
Setting up an Authorize.net account involves registering, creating a merchant account, configuring API settings, and linking a bank account for secure fund transfers.
Authorize.net offers advanced features such as recurring billing, eCheck processing, and robust security measures like Address Verification Service (AVS), card tokenization, and the Fraud Detection Suite to enhance security and prevent fraud.

What is Authorize.net Gateway?

Founded in 1996, Authorize.net is a USA-based payment gateway provider that has been serving over 400,000 merchants worldwide. This net payment gateway facilitates the complex routing of credit card and electronic check payment transactions to processing networks and other parties involved in settling transactions. Whether you’re running a website, retail application, call center, or mobile wireless device, Authorize.net provides real-time processing of credit card and electronic check payments over the Internet, 24/7. Moreover, it supports multi-currency transactions, allowing businesses to accept payments in different currencies, making it a versatile choice for global operations.

Authorize.net is one of the leading payment gateways, supporting various merchant business models, including websites, retail locations, mail order/telephone order call centers, and wireless devices. The gateway supports multiple payment methods, including credit cards, eChecks, and digital payments like Apple Pay and PayPal. Additionally, it allows you to integrate your website or app using an Application Programming Interface (API) to manage customer profiles and transactions. With features like card tokenization, which replaces sensitive payment data with a unique token, Authorize.net simplifies PCI DSS compliance and enhances security.

Setting Up Your Authorize.net Gateway Account

The first stride on the path to streamlined payment processes is setting up an Authorize.net account. Each step in this process plays a distinct role in empowering your business to process credit card payments effectively. Here are the steps you need to follow:

Register on the Authorize.net platform
Create a merchant account
Configure your API settings
Link your bank account

Creating a new merchant account involves the following steps:

Providing necessary business, financial, and tax information
Configuring your API Login ID and Transaction Key to integrate Authorize.net with your website or e-commerce platform
Linking your bank account to ensure smooth and secure transfer of funds from transactions to your business account

Let’s delve into each of these steps in detail.

Creating a New Merchant Account

To get started with Authorize.net, visit their website and click on the ‘Sign Up’ or ‘Get Started’ button to begin the registration process. You’ll need to provide necessary information such as business details, bank account information, and tax identification. This information is crucial for Authorize.net to verify your business’s legitimacy and ensure compliance with financial regulations.

Once you’ve completed the application form and agreed to the terms and conditions, your application will be reviewed by Authorize.net. Approval typically takes a few business days, during which Authorize.net verifies the provided information and conducts necessary checks.

After approval, you’ll be ready to start using your new merchant account for credit card processing to process credit card payments.

Configuring API Login ID and Transaction Key

After your merchant account is approved, the next step is to set up your payment gateway by configuring your API settings. This involves generating your API Login ID and Transaction Key, which are essential credentials for integrating Authorize.net with your website or e-commerce platform. To generate these credentials, sign into the Merchant Interface and navigate to ‘API Credentials & Keys’ under ‘Security Settings’.

The API Login ID serves to identify your account during transaction requests submission, whereas the Transaction Key fortifies the security measures. You can generate a new Transaction Key and disable the old one immediately or let it expire in 24 hours. Configuring these settings ensures that your transactions are processed securely through the Authorize.net payment gateway.

Linking Your Bank Account

Connecting your bank account to Authorize.net is an essential measure for smooth and secure transfer of funds from transactions to your business account. During the application process, you’ll need to provide your bank routing number and account number. It’s important to ensure that all bank account information is accurate to avoid any delays or issues with fund transfers.

Authorize.net verifies the provided bank account details as part of the net account approval process. Once your bank account is linked and verified, you’ll be ready to start processing credit card payments and other transactions through the Authorize.net payment gateway. This ensures that your business can efficiently manage its cash flow and financial operations.

Integrating Authorize.net with E-commerce Platforms

Integrating Authorize.net gateway with E-commerce Platforms

Integrating Authorize.net with popular e-commerce platforms allows you to connect payments seamlessly to other parts of your business, such as shopping carts, accounting, and subscriptions. Regardless of whether you operate on Shopify, WooCommerce, Magento, or any other platform, Authorize.net provides powerful integration options to bolster your online store’s payment capabilities.

Next, we’ll explore how to integrate Authorize.net with some of the most popular e-commerce platforms, starting with Shopify.

Shopify Integration

To integrate Authorize.net with Shopify, you need to:

Install the new Authorize.net payments app and deactivate the old one on your Shopify dashboard.
The deadline for migrating to the new integration is September 30, 2024.
Log in to your Shopify admin, navigate to Settings > Payments, and select Authorize.net as your payment provider.
It’s important to disable the test mode on your Authorize.net account, as the test servers are not compatible with Shopify.

Once the test mode is disabled, activate Authorize.net in Shopify to start processing credit card payments. Shopify’s updated payment architecture impacts elements like transaction ID visibility, third-party integration, and support for Customer Information Manager tokens. Updating your Authorize.Net plugin within your Shopify dashboard is a simple process. For detailed step-by-step instructions, refer to the Authorize.Net Shopify Migration Guide.

Step-by-Step Guide to Reconnect Authorize.Net with Shopify

Step 1: Access Your Shopify Admin Panel

Step 2: Navigate to Payment Providers

Once logged in, go to ‘Settings’ and then ‘Payments’. This area allows you to configure how you will accept payments online.

Step 3: Deactivate the Current Gateway

To reconnect, you’ll first need to deactivate the current connection with Authorize.Net. Click ‘Deactivate’ next to Authorize.Net in your list of payment gateways, then confirm by clicking ‘Deactivate’ again in the popup.

Step 4: Reactivate Authorize.Net

After deactivation, you’ll see the option to ‘Activate Authorize.Net‘ again. Click this to begin re-establishing the connection.

Step 5: Enter Your Authorize.Net API Credentials

You will need your API Login ID and Transaction Key. Enter these credentials accurately to avoid any issues. If you don’t have these, you can find them in your Authorize.Net account under ‘Account’ > ‘API Credentials & Keys’.

Step 6: Configure Your Settings

Decide how you want to handle transactions (e.g., whether to authorize and capture funds immediately or authorize only). Make sure to configure these settings according to what works best for your business model.

Step 7: Test the Connection

It’s crucial to ensure everything is working correctly by conducting a test transaction. This can prevent any potential issues that could affect your customers’ experience.

Advanced Features of Authorize.net Gateway

A plethora of advanced features offered by Authorize.net are capable of elevating your business’s payment processing capabilities. From recurring billing to eCheck processing and international transactions, these features provide flexibility and convenience for both merchants and customers.

Let’s explore each of these advanced features in more detail.

Recurring Billing

Automated Recurring Billing (ARB) in Authorize.net simplifies the process of managing subscription-based transactions. Automation of the billing process for recurring payments aids businesses in mitigating the risk of missed or late payments, thereby ensuring a consistent cash flow. To set up ARB, log into the Merchant Interface, navigate to Recurring Billing, and agree to the Terms of Service.

Merchants can create new ARB subscriptions through the Merchant Interface, from successful transactions, by uploading batch files, or using the Recurring Billing API. A trial period can be set for ARB subscriptions, allowing customers to be billed a special trial amount before the regular subscription amount kicks in. Additionally, merchants can edit ARB subscriptions to update details like billing information or renew a subscription by changing its end date. Merchants receive email notifications for various ARB subscription events, ensuring they are always informed about their subscription transactions.

eCheck Processing

Authorize.net’s eCheck processing feature allows merchants to:

Receive payments directly from customers’ bank accounts
Present a cost-efficient alternative to credit card transactions
Process transactions on a different network than credit cards
Save time and reduce errors compared to paper checks

eCheck transactions are not authorized or declined in real-time.

To process eChecks, customers need to provide their bank routing and account numbers via an online form. The benefits of using eChecks as a payment method include:

Low transaction costs, often between 26 and 50 cents
Reduced processing fees for businesses
Increased payment flexibility for customers
Enhanced customer satisfaction

This feature enhances business operations by providing an additional payment method for customers and improving overall payment processes.

International Transactions

Authorize.net facilitates international transactions, thereby enabling businesses situated in the United States, Canada, or Australia to accept payments from customers globally. This feature simplifies payment processing by accepting various payment methods like credit cards, EMV chip cards, and digital payments such as PayPal and Apple Pay.

Customers can pay using their preferred methods, including:

Visa
MasterCard
Discover
American Express
JCB
PayPal
Apple Pay
eCheck

Even for international transactions. By supporting multi-currency transactions, Authorize.net enables businesses to expand their reach and cater to a global customer base, enhancing their growth potential and revenue streams.

Enhancing Security with Authorize.net

For any business managing online payments, security holds paramount importance. Authorize.net offers an array of security features designed to safeguard sensitive payment information and minimize fraud. From Address Verification Service (AVS) to card tokenization and the Fraud Detection Suite, Authorize.net ensures that transactions are processed securely and efficiently.

Let’s delve into these security features and see how they can benefit your business.

Address Verification Service (AVS)

The Address Verification Service (AVS) assists in authenticating the customer’s billing address with the card issuer to mitigate fraud. AVS compares the billing address provided by the customer during a transaction with the address on file at the credit card issuing bank. This comparison helps detect possible fraudulent transactions by returning a code indicating the match result, such as whether the street address or ZIP code matched or did not.

AVS response codes help merchants decide if a transaction should be approved. For instance, ‘A’ indicates the street address matched but the ZIP code did not, while ‘N’ signifies that neither the street address nor the ZIP code provided by the customer matches the billing address on file.

Configuring AVS in the Merchant Interface allows specifying when a transaction should be rejected based on the AVS match results, thereby enhancing security.

Card Tokenization

Card tokenization offers the following benefits:

Substitutes sensitive credit card details with a unique identifier or token
Permits future transactions without revealing the actual card information
Enhances security by ensuring that sensitive payment data is not stored on internal systems
Reduces the risk of data breaches

Authorize.net offers the following features:

Securely store multiple payment methods using tokenization
Simplify PCI DSS compliance
Process payments without exposing actual card information
Optimize the checkout process
Enhance security and protect payment information

This feature provides peace of mind for both merchants and customers.

Fraud Detection Suite

The Fraud Detection Suite (FDS) equips businesses with advanced tools capable of identifying and preempting suspicious transactions in real-time. These tools allow merchants to set up filters that can process transactions normally, hold them for review, or decline them based on predefined criteria. By configuring these filters, merchants can prevent fraud before it occurs, ensuring that only legitimate transactions are processed.

For instance, the system can automatically decline transactions that trigger certain fraud filters before they are authorized. This proactive approach helps reduce the risk of fraudulent transactions, saving merchants from potential financial losses and protecting customers’ sensitive information. With FDS, businesses can operate with confidence, knowing that their transactions are safeguarded against fraud.

Managing Payments and Refunds

Efficient management of payments and refunds is key to uphold customer satisfaction and assure seamless business operations. Authorize.net provides robust tools within the Merchant Interface to capture charges, process refunds, and handle decline messages effectively.

Let’s explore how to utilize these tools to manage your transactions seamlessly.

Processing Refunds

To process refunds in Authorize.net, follow these steps:

Log in to the Merchant Interface.
Locate the transaction to be refunded.
Refunds can only be issued for transactions that have been settled within the past 180 days.
Refunds must be issued to the same credit card number or ACH account used in the original transaction.
For transactions in Unsettled Transactions, you should void or cancel them instead.

To issue a refund using the Virtual Terminal, you must provide the original transaction ID, the last four digits of the account that was charged, and the refund amount. This ensures that refunds are processed accurately and efficiently. Refunds are processed at settlement time along with other merchant transactions, simplifying the management of customer returns and credit transactions.

Capturing Charges

Capturing charges can be done manually or automatically, depending on your e-commerce platform’s integration with Authorize.net. Manual capture allows merchants to review and approve transactions before processing the payment, providing additional control over the transaction process.

To capture an authorized transaction in the Merchant Interface, navigate to the Transaction Detail page and use the Capture button. For capturing multiple transactions or a lesser amount, you can modify the settlement amount and select transactions in the Unsettled Transactions menu. This flexibility ensures that you can manage your transactions efficiently and avoid higher processing fees and potential chargebacks.

Handling Decline Messages

Handling decline messages effectively is essential for maintaining a smooth payment process. Common decline messages include insufficient funds, incorrect card information, and expired cards. To troubleshoot these issues, merchants should verify card details and ensure that the card has not expired.

When a transaction triggers a fraud filter, merchants can choose to authorize it but hold it for manual review for up to 30 days. Transactions held for review without authorization can be manually reviewed within five days before being either approved or declined. Transactions that are declined or unsettled cannot be refunded and should be voided instead.

By effectively managing decline messages, you can improve your payment process and enhance customer satisfaction.

Customer Experience and Support

Enhancing the customer experience and delivering robust support services are essential for sustaining customer loyalty and satisfaction. Authorize.net offers features like a seamless checkout process, secure payment method storage, and a 24×7 support team to ensure that your customers have a positive experience every time they interact with your business.

Let’s explore these features in more detail.

Seamless Checkout Process

A seamless checkout process is crucial for enhancing the customer experience. Ensure your checkout page is mobile-friendly to accommodate the growing number of customers shopping on their mobile devices. Authorize.net supports mobile checkout with automated card formatting and numerical input fields, making the process quick and easy for customers.

Offering guest checkout options can reduce friction and make the checkout process faster and more convenient for first-time customers. Additionally, providing multiple payment methods, such as:

Credit cards
PayPal
Google Pay
Apple Pay
ACH

ensures that customers can choose their preferred way to pay, further enhancing their experience.

Saving Payment Methods Securely

The Customer Information Manager (CIM) service by Authorize.net enables businesses to:

Tokenize and securely store customer payment details
Simplify PCI DSS compliance and bolster security by using tokens instead of actual card information
Allow customers to save multiple payment methods, making future transactions faster and more convenient.

The CIM service offers the following benefits:

It can store both payment and shipping information, streamlining the checkout process for returning customers.
This feature improves customer satisfaction by providing a smooth and hassle-free checkout experience.
It encourages repeat business by making the checkout process more convenient.

24×7 Support Team

A round-the-clock support team is offered by Authorize.net, accessible via phone, online chat, or through an online support case submission. This ensures that you can get assistance whenever you need it, regardless of your location. The support team is available to help with any issues or queries, ensuring that your payment processes run smoothly and efficiently.

Summary

Reconnecting Authorize.Net with Shopify is a straightforward process that secures your transactions and ensures a professional checkout experience for your customers. Follow this guide by Vector Payments to minimize downtime and enhance your e-commerce operations. For more information and support, visit our blog regularly and stay updated on the best practices for managing your online store’s payment systems.

If you’re curious about what happened to Authorize.Net on Shopify, check out our detailed article here.

Frequently Asked Questions

Will Authorize.Net still work with Shopify after the recent updates?

Yes, Shopify will continue to support Authorize.Net as a payment gateway.

What should you do to ensure the integration of Authorize.Net with Shopify?

To ensure the integration of Authorize.Net with Shopify, update the Authorize.Net plugin within your Shopify dashboard.

Is the update process for Authorize.Net plugin in Shopify simple?

Yes, updating the Authorize.Net plugin in Shopify is a simple process.

Where can you find step-by-step instructions on the mandatory migration of Authorize.Net in Shopify?

You can find detailed step-by-step instructions in the Authorize.Net Shopify Migration Guide. It provides comprehensive guidance for the mandatory migration.