About Authorize.net

Authorize.net is one of Narmi's standard third-party vendors (TPVs). The functions of the Authorize.net platform include:

• Payment terminal for ACH, debit, and credit transactions in the Account Opening workflow
• Card transactions – encrypts card information ensuring the transaction is secure
• ACH transactions– processes directly through their eCheck product and sends the funds to the financial institution
  • “eCheck” is synonymous with ACH funding for the purposes of Authorize.net

Authorize.net Products

Authorize.Net provides multiple payment processing solutions. Narmi uses the following two products:

1. Online payments - Gateway Only for debit/credit funding
   • The "Gateway Only" product requires that FIs have a merchant account provider
   • For all Narmi clients, that merchant account provider is Elavon
   • Authorize.Net and Elavon charge fees for processing card and ACH transactions
2. eCheck.Net payments for ACH funding directly from an external bank account

Financial institutions sign up directly with Authorize.net for these products, but a Narmi Implementations Project Manager will provide direction and support. 

How Does Authorize.net Work? 

Once a user's application moves to the "approved" status in Alloy, the application moves to the funding stage. Narmi then sends user-inputted funding information to Authorize.net based on the user's selected funding method.

For Credit or Debit Card Funding, Narmi sends:

• Card Number
• Cardholder Name
• Expiration Data
• CVC
• Billing Zip Code

Authorize.net acts as the gateway (or terminal) for card funding by encrypting the above information and sending it to Elavon, Narmi's merchant account provider, to complete the transaction. 

For External Bank Account Funding (via ACH using eCheck.Net), Narmi sends:

• Account type
• Routing number
• Account number

And the following occurs: 

1. Authorize.net receives the funds' request and stores the transaction in the "batch" with others from the day
2. At the end of each business day, a request is submitted to the user's bank through the Automated Clearing House (ACH) to charge that particular user
3. Authorize.net's eCheck system waits for the result of the transaction from the bank. This process usually takes 3-5 business days
4. The funds are transferred via electronic funds transfer (EFT) from the user's external bank and deposited into the new bank account
5. eCheck account balance is updated depending on the results of the transactions

The FI will typically receive the new funds for ACH accounts slower than card-funded accounts. Therefore, the hold (between 0-5 days) is configurable based on funding type. Learn more in Funding Limits & Hold Management.