Which banks are compatible with authorize.net?

Is there a way to find out which banks are compatible with Authorize.net? I researched this a while back but don’t have the info. It had something to do with the acquirer, I just don’t remember.

It would have to do with the acquiring bank for the merchant account provider as Authnet probably only runs on some of their processing networks. I don’t know where to find a comprehensive list, sorry, but they do have a directory of resellers that offer Authnet accounts:

Well I want the merchant account itself to be with a bank bank, not a bank through a third party… We’re going to be incorporating soon and can’t wait to dump BofA. Going to open a new account, both business checking and merchant. But the bank’s processor would of course have to be compatible with authorize.net. I guess we’ll just find out when we find a bank we’re interested in and go from there… I know that TSYS, formerly known as Vital is compatible with Authorize.net but that’s about all I know at this point…

Most local banks outsource their payment processing to a third-party vendor that they are just reselling for. On top of that, they usually have very high rates compared with some of the larger online Authorize.net resellers out there.

Is there any reason in particular you want to have your processing through your local bank? The actual processing does not go through them anyway, so at most you’ve just got a local customer service representative. On the flip side, they probably know very little about e-commerce (at least the ones in my area do).

Well, my reasons for wanting to continue with a “true merchant account” are stated here in the FAQ:

Would you agree or disagree with the statements in there?

Another reason, although I’m not sure if other banks offer it, is next day settlement. When we had our merchant account and checking account through BofA, we enjoyed next day settlements (that was the only good thing about them)

I think you are confused. Everyone listed on the Authorize.net resellers list offers true merchant accounts. Third party payment processors are companies like PayPal or 2Checkout that use THEIR merchant account and gateway to process your transactions and then give you the money. The money they hold for you in the meantime is not FDIC insured and they typically charge much higher fees (because they in turn have to pay merchant fees).

Whether you go to a brick and mortar (i.e. branch) bank or get a merchant account from a company like CDG Commerce (www.cdgcommerce.com) they are still both TRUE merchant accounts, and are underwritten by real banks that are FDIC insured and regulated by the federal government.

Depending on your volume and negotiating power you may be able to get next business day settlement… we get settlmenent on the 2nd day, which for us works great.

ok, 3rd party was the wrong word to use; I just meant other than directly through the bank itself, i.e. the merchant account statement comes from the bank each month instead of from the reseller. And having local customer service is always a plus. It’s nice to be able to walk into a bank and be face to face with someone… The next day settlement thing was a perk with BofA and I haven’t yet heard of any other outfit that offers that. I talked with MerchantPlus.com a while back and they said they were working on being able to offer it…

Well, I’m not sure about BoA but our first merchant account was with our local SunTrust branch and they were just a reseller. The merchant account was actually not THROUGH SunTrust Bank.

I think you’d be really surprised how many banks do not actually process their merchant accounts themselves. BoA might, but even then it’s not done at the local branch. One thing I definitely noticed was how little the local branch actually knew about credit card processing… and how expensive they were.

You don’t necessarily have to go through a reseller - you can go directly to a merchant bank even if they’re not a brick and mortar branch.

I would recommend not restricting yourself to one or the other. Call on several, ask questions. Get rates. Test their customer service. Pick the best one, local branch or not.

Local banks are usually the last place to go for a merchant account. They’re almost always just resellers for another provider and rarely have the best rates as they have to mark it up to make a profit from it.

Like Brandon said, shop around, use this Merchant Account Comparison Worksheet
and [url=Advanced Rate Comparison Calculator
http://www.merchant-account-services.org/resources/calculators/advanced-rate-comparison.php]calculator to help you, and then choose the one with the best rates. The service between providers is the same and you should rarely need any support as merchant account just work.