What a Merchant Account Solution Actually Is
A merchant account holds the money from card sales. A gateway moves the data. Here is how the two pieces fit and what one processor charges for them.
A customer taps, clicks, or reads their card number over the phone. Later the money lands in your business bank account. Between those two moments sit two pieces most shop owners never see: a merchant account and a payment gateway. Together they make up a merchant account solution. This article explains both pieces. It covers what an underwriter checks when you apply, and the fees that show up on a bill. Authorize.net's own pricing page is the worked example.
What a merchant account solution is: the two pieces that work together
Authorize.net's pricing page calls the merchant account a type of bank account that lets businesses accept payments by debit or credit cards. The same page says a gateway sends payment data safely. It moves it between the customer, your site or terminal, and the payment networks. One piece holds money. The other moves information. Authorize.net's page says you must have a merchant account in order to accept credit cards.
Some companies sell the two pieces together. Authorize.net's page says its All-in-One plan combines a merchant account and a gateway. Others let you buy just the gateway and pair it with an account you already have.
How a merchant account works: where card money sits before it reaches your bank
Authorize.net's pricing page says its merchant account holds funds from card transactions and deposits them into your business bank account. The account sits in the middle, holding each sale until the transfer completes.
Authorize.net's page offers a useful way to think about this. The page compares the account to a line of credit a business draws on to take payments or hand out refunds.
What the payment gateway does
The gateway is the messenger. According to Authorize.net's pricing page, the gateway transmits payment data securely. It moves it between the customer, your site or terminal, and the payment networks. A buyer hits submit. The gateway sends the card details out. Then it brings back an approval or a decline to your site or screen.
The same page says one integration connects a website, shopping cart, or invoicing system in minutes. The gateway also works without hardware. Authorize.net's pricing page says its payment gateway accepts payments through a Virtual Terminal or digital wallet with no point-of-sale hardware required.
What an underwriter looks at when you apply
Nobody gets a merchant account just by asking for one. Per Authorize.net's page, whether a merchant account gets approved turns on things like your industry, your credit history, and how quickly you respond. Its pricing page is more specific. It says an underwriter checks your industry and processing history. It also checks your personal credit and your business credit.
Responsiveness is one factor Authorize.net's page lists.
The fee types that make up the cost of a merchant account
The fee types Authorize.net's page names for merchant accounts include percentage-based fees, fixed per-transaction fees, and monthly service or gateway fees. Batch or settlement fees, cross-border surcharges, and PCI compliance fees appear on the same list. The page says these fees together shape your total cost. They also help determine which pricing model suits your business.
In plain terms:
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A percentage fee is a slice of each sale.
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A fixed per-transaction fee is a set cents amount on every charge.
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A monthly fee covers the service itself.
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A batch fee applies when your day's sales settle as a group.
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Cross-border surcharges apply to sales from outside the country.
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PCI compliance fees relate to the security standards your account must meet.
Want to see how these fees play out on a real sale? Our piece on a forty dollar sale at the counter does the math.
A worked example: one processor's published plan prices
Here is what Authorize.net's own page says about its two plans.
Authorize.net's page says the All-in-One plan is $25 per month plus 2.9% plus 30 cents per transaction. This plan bundles the merchant account and the gateway. Its page says a merchant account applied for through its All-in-one plan may have separate terms that can be reviewed at signup.
For the Gateway Only plan, Authorize.net's page quotes $25 per month, 10 cents per transaction, and a 10 cent daily batch fee. The page says its gateway only option allows you to connect to any merchant account provider.
The page also says there are no additional fees beyond the noted prices, except Account Updater and eCheck payments. And it says the payment gateway does not have a contract or early termination fees.
Published prices change. Check both plans against Authorize.net's page before you commit on signup day.
What the monthly fee can include
A monthly fee is not always a blank charge. Authorize.net's page says the monthly fee covers included features such as fraud protection, recurring billing, digital invoicing, customer data management, support, and AI-powered reporting. The monthly gateway fee, per its page, is $25.00. That fee is prorated if you start mid-month. The setup fee is $0.00.
Authorize.net's page says the credit card transaction fee is $0.10 and applies to charges, refunds, voids and declines.
The page says the batch fee is $0.10 per settled credit card batch. Batches close once per day. The cut-off defaults to 3:00 PM PST, though it can be adjusted.
Payment options available after setup
Authorize.net's pricing page says it accepts credit cards, debit cards, Apple Pay, Google Pay, and other digital wallets at checkout. Its page says it takes Visa, Mastercard, American Express, Discover, JCB, and Diners Club cards.
Beyond cards at checkout, the page lists several other ways to take money:
- A Virtual Terminal that accepts manual phone orders.
- Simple Checkout, which adds a Buy Now or Donate button to a website.
- Customer Information Manager, which stores customer payment details safely. It speeds up checkout.
- Digital Invoicing, which sends invoices and collects payments with no extra setup.
- An eCheck service that takes electronic check payments. Authorize.net's page says eCheck is an add-on at 0.75% per transaction. It is only for businesses based in the U.S.
Getting started: bringing an existing merchant account or applying for both
There are two paths in. Already have a merchant account? Authorize.net's page says you can add your provider's settings to the gateway. The same page says an account that is not solely owned cannot be used with the Authorize.net gateway.
No account yet? Authorize.net's page says its all-in-one plan helps you get a merchant account. Partners help you gather everything required for signup.
How fast is it? Authorize.net's page says a completed gateway application is approved automatically. The merchant account side is different. Authorize.net's page says merchant account approval depends on factors including industry, credit history and responsiveness.
To start, Authorize.net's page says you can fill in a quick form online. Or call, and a representative will walk you through getting started.
What to check before you commit
Before you commit, check the processor's own page for the current numbers. Confirm the monthly fee, the per-transaction fee, and the batch fee. Then check which features the monthly fee covers on your plan. Pairing the gateway with an outside merchant account? Check what that provider charges. Its rates sit on its own page. Ask whether the plan carries a contract or early termination fee. Authorize.net's page says its gateway has neither, but terms differ across companies. Read the separate terms for any merchant account offered through a bundled plan before you sign.