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Authorize.Net Invoice Payments: Setup and Best Practices

📅 January 3, 2025 ⏱ 5 min read

Authorize.Net is one of the most established payment gateways in the United States, processing over $149 billion in payments annually for more than 430,000 merchants. While newer processors like Stripe have better developer experience, Authorize.Net remains the preferred choice for many established US businesses — particularly those in regulated industries, those with existing merchant account relationships, or those using it with their existing bank.

How Authorize.Net invoice payments work

When a client clicks "Pay Now" on an invoice, the Authorize.Net payment form collects their card details securely (hosted by Authorize.Net, not your servers) and processes the charge against your merchant account. The payment gateway communicates the result back to TallyArc via webhook, and the invoice is marked paid automatically.

Supported payment methods via Authorize.Net include:

Authorize.Net pricing

Authorize.Net typically works with a separate merchant account, so pricing has two components:

The all-in cost varies but is typically 2.5–3.5% for card-not-present transactions. For businesses that already have a negotiated merchant account, the total processing cost can be lower than Stripe's flat rates.

Connecting Authorize.Net to TallyArc

  1. In your Authorize.Net Merchant Interface, go to Account → Settings → API Credentials and Keys
  2. Note your API Login ID and generate a new Transaction Key
  3. In TallyArc, go to Settings → Payment Providers → Authorize.Net
  4. Enter your API Login ID and Transaction Key
  5. Set the environment to production (not sandbox) and save

ACH payments via Authorize.Net

One of Authorize.Net's advantages for B2B invoicing is its robust ACH/eCheck support. ACH transfers carry a flat fee (typically $0.75–$1.50 per transaction regardless of amount) rather than a percentage, making them dramatically cheaper than cards for large invoices. A $10,000 invoice paid by ACH costs $1.50 to process; the same invoice on a card costs $290 at 2.9%.

If you're invoicing other businesses (rather than consumers), enabling ACH as an option in your payment portal is worth the setup time.

Authorize.Net vs modern processors

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