SWOT Analysis of Authorize.NET | Authorize.NET Strengths, Weakness, Opportunities and Threats
1. What is Authorize.NET?
Authorize.net is an online company that provides payment processing services for transactions processed on behalf of merchants and institutions.
Authorize .NET was founded in 1996 and is currently a division of Visa incorporated.
Users may enter credit card and shipping information immediately on a website page, unlike some other options that require customers to join up for a payment provider before making a transaction.
2. How is the Business Model of Authorize.NET?
Authorize .NET’s business model is based on a revenue-share agreement. This means that the company charges merchants a fee for transaction processing and the merchant gets back and it will charge $0.10 per transaction cost.
Authorize.net employed 33 people across all of its locations and brings in $3.84 million in revenue (USD)
Authorize .NET incorporates a complete suite of payment solutions such as credit card processing, payment gateway services, recurring billing, electronic check conversion and internet technical support.
The company provides a variety of easy to use programs for its users. All of them are designed to make online transactions easier for consumers.
3. Authorize.NET Revenue and Financials
Authorize .NET’s revenue for 2011 is $3.84 million USD with a net loss of $24.1 million and an EBITDA (Earnings Before Interest, Taxes and Depreciation) of $18.2 million USD.
Authorize. In 1999, Go2Net, a firm funded by Microsoft founder Paul Allen, purchased Net as one of numerous companies for US$90.5 million in cash and equity.
In 2000, InfoSpace purchased Go2Net for around $4 billion Authorize. Lightbridge bought Net in 2004 for $82 million and CyberSource bought it in 2007.
Authorize.net is a payment provider which offers a comprehensive solution for accepting electronic payments on a website.
The company has been in business since 1996 and supports a wide variety of payment methods, including credit card, PayPal, and ACH payment transactions.
Authorize .NET’s services allow users to run both secure and high value transactions through any channel.
4. Authorize.NET Partners
Authorize .NET is partnered with numerous companies. Some of them are
a) Bigcommerce: Bigcommerce is an ecommerce platform that’s designed to speed up online store creation and management.
b) Chargify: Chargify is a provider of subscription billing and recurring billing.
c) CyberSource: CyberSource provides payment processing services to companies that accept credit cards on their websites.
d) PayStand: PayStand is a payment gateway that offers pay-as-you-go invoicing and card acceptance for small businesses and nonprofits.
e) PayPal: PayPal is an online payment facility backed by eBay.
f) Recurly: Recurly is an online payment gateway for subscriptions that provides merchants with tools to grow recurring revenue through automated billing, management and reporting.
5. Authorize.NET Competitors
Authorize .NET is in competition with numerous companies such as;
a) PayPal: PayPal is an online payment facility backed by eBay
b) eWay: eWay is an online payment processing company that works with many of the top brands in the world.
d) Payoneer: Payoneer is a global payment service provider that provides businesses with an easy way to pay their international suppliers and employees.
e) Stripe: Stripe is a developer of software and services for running an internet business.
f) Worldpay: Worldpay is an international payment services provider that offers a range of electronic payment products and services to businesses, including the processing of card payments.
g) BlueSnap: BlueSnap is a payment processing company whose products include credit card and electronic checks conversion.
h) Orbital Payment Gateway: Orbital is an electronic check conversion company that offers a number of payment options for online businesses.
i) Dwolla: Dwolla is a financial services firm that offers a variety of services to businesses including account creation, funding, and payment processing.
6. SWOT Analysis of Authorize.NET
· Strengths of Authorize.NET
a) Strong technical team: Authorize .NET’s team is very strong and is well-equipped with all the necessary skills they need to make sure that there is no downtime on their part.
b) Strong revenue stream: The Company offers a wide range of services including credit card processing, recurring billing, payment ACH, check conversion, recurring billing etc. This strong revenue stream helps pay for expensive infrastructure that authorizes.net needs to maintain.
c) Extremely secured: Authorize.NET is extremely secure and has taken all the necessary steps to make sure that customers don’t lose any money.
d) Very quickly in payment process: Authorize .NET is very quickly in payment process. The company is very easily scalable and the team is very quick at fixing any issues that occur on their website.
e) Unlimited size of transactions: Authorize .NET allows customers to make transactions of unlimited size.
f) Competitive pricing: Authorize .NET is highly competitive with their pricing. The company offers numerous discounts on its fee so that more customers are encouraged to use their services.
g) Easy integration: Authorize.NET is user friendly and very easy to integrate with clients.
h) Reputable company: Authorize .NET is a well-respected company in the industry.
i) Customer Services: The customer service at Authorize .NET is fantastic and the company has a very user-friendly and easy to use support system that helps enable its users to successfully conduct transactions.
j) Multiple of Currency support: Authorize .NET supports multiple of currency. The company helps their customers conduct transactions at the same time in multiple currencies.
k) Multi-language support: Authorize .NET offers its users to choose their preferred language while conducting business on their website.
l) Strong relationships with its partners :Authorize .NET has strong relationships with its partners ensuring that there are no issues in future if partnered companies have any issues.
· Weaknesses of Authorize.NET
a) Lack of brand recognition: The Company has not experienced any major success in the past and it is not known to many people about authorizations .NET’s services.
b) Low product innovation: With the increase in competition, the company hasn’t been able to innovate too much on their products. The company hasn’t been able to make any significant changes in how they run their business which makes it difficult for them to compete with tier one companies such as amazon, paypal etc.
c) Outdated website: The website of the company is outdated and is not appealing to the customers. The company needs to update its website so that it will be able to attract more people.
d) Loss of business: The Company lost a lot of business due to its high fees so it has been struggling to maintain its services.
e) High refunds: The Company is slow to refund its customers after receiving their money.
f) Website Atrocious: the Company’s website is not attractive and the company needs to work on this.
g) Cluttered website: The website of authorizations .net is much cluttered and it needs to work on this.
h) Offline payment process: The Company doesn’t have a very good offline payment process.
i) Not wide spread: The Company is not as wide spread as other companies in the industry.
k) Lack of awareness about the services: The Company does not have a good awareness about the services and products it offers and it needs to work on this.
· Opportunities for Authorize .NET
a) Mobile payments: There has been a rise in mobile payments and with the increasing use of smartphones and tablets, authorizations.net has a good chance of making money by providing their services through mobile platforms.
b) Complete Package: The Company is only making one service. It is not good enough for the company to have just one service. The company has a lot of room for growth by providing more services besides just credit cards.
c) Professional Services: The Company can expand on their professional services so that they are able to offer their services to more customers and they will be able to increase their target audience.
d) Huge purchase: The Company has the potential to do very large transactions and this can be a great opportunity for them.
e) Stringent security measures: the Company’s main strength is its security measures and thus they need to make sure that they keep upgrading their security system.
f) Better integration: The Company needs to work on improving its integrations so that they can make it more efficient for their customers.
g) Better customer Service: The Company needs to work on its customer service policy and make it more efficient
h) Better Upgrades: There have been a number of upgrades in the payment industry and Authorize .NET needs to keep upgrading itself so that it can keep up with the changing times.
i) More innovative: The company has a lot of room for growth by expanding on its services and coming up with innovative products.
j) Better targeting customers: Authorize.NET needs to make sure that they target the right customers and make sure that it is able to cater to all of their needs.
k) Increase of customer base: The Company has a lot of customers but the company needs to increase its customers.
l) Better progress: The Company needs to make sure that it is able to progress in the right way so that there are no slowdowns in its service.
m) Improved customer relations: The Company needs to work on improving their customer relation so that the customers are satisfied with their services.
n) Make sure that everything is working fine: Authorize .NET needs to make sure that the company is continually working on fixing its problems.
· Threats OF Authorize.NET
a) Compete against bigger players: Authorize .NET is facing competition from bigger players in the industry.
b) Integration of modern technology: In order to compete against bigger players, Authorize.NET needs to update its technology so that it is not outdated.
c) Loss of customers: The Company is losing a lot of customers due to the high fees and the lack of reliability.
d) Not able to continue: The company doesn’t have a long enough history and it might be a huge risk for them.
e) High number of refunds: The Company is slow at refunding the customer after receiving the money.
f) Safe site: There are many issues of security on the company’s website which are causing problems for customer.
g) Not able to keep up with competition: The company doesn’t have the capability of keeping up with the technology and technology of its competitors.
h) Poor development plan: The Company has no adequate plan for implementing technology.
7. FAQs of Authorize.NET
What are the four types of payment?
- a) Electronic Bank Transfers
- b) Debit Cards
- c) Credit Cards
- d) Check
What is a time delayed transaction?
A time delayed transaction allows you to add a time delay to your transactions.
This feature is useful when you need to process a large number of transactions at once and then have they send out over a period of time rather than all at once.
What is transfer authorization?
Transfer authorization allows merchants to take a credit card payment immediately while processing a number of payments later.
When this feature is turned on, the credit card amount will be withdrawn from the customers’ bank account and then authorized by the merchant online.
This will only take a few minutes for a large number of transactions.
Is authorize Net reliable?
Authorize Net is a very reliable company. They have always been able to get the payments from customers and have never been late in refunding money.
In fact, they are so reliable that they get away with charging a higher fee for their services.
What is an electronic funds transfer?
Electronic Funds Transfer is a good way of sending money electronically. It allows the merchant to receive the money right away while recognizing it as an actual payment.
It can be used to process a number of payments at once so that you don’t have to wait long for them to send out.
What are branded Visa cards?
Many companies have issued their own branded Visa cards. These can be used at almost all Visa merchants and will usually come with extra benefits like free air miles, premium insurance etc.
Is Authorize.Net legit?
Authorize.Net is one of the most reliable companies that exist. They have never failed to get the payments from the customers and they have never failed to refund money.
So, Authorize.Net is most definitely a legit site.
What are the advantages of using Authorize .NET?
- a) Easy integration
- b) Secure transactions
- c) Customized IPN infrastructure
How can I receive my money?
Authorize Net can accept your money in a number of forms. You can choose to get the money in your account or you can choose to get it in the form of a check.
The checks are usually sent out 10–14 business days after they receive the payment.
Is it safe to pay via Stripe?
Yes, it is safe to make the payment via stripe. It has been certified by a number of third parties and thus you can be sure that your money and data is safe.
Do I need a business account to use Authorize .NET?
No, you do not need a business account with Authorize .NET for you to be able to use its services.
Anyone can sign up and start using their services without needing any approval from other parties.
Should I trust Authorize.Net?
Yes, you should definitely trust Authorize.Net. The company has a very good track record and thus you can be sure that your money is safe with them.
What are the requirements to open an account?
You do not need any information from other parties to open an account with Authorize .NET. Anyone can sign up and start using their services without any problem or hurdle.
Is Authorize .NET a safe company?
Authorize .NET is one of the safest companies that exist. It has been in the industry for a very long time and has been recognized by many other companies as a reliable software provider.
This, in itself, should assure you that you can trust them with your money.
How to redeem funds from Authorize .NET?
Authorize .NET can be redeemed in a number of ways. The first one is through your bank account, the second one is through a check that can be sent to you.
You can also choose to redeem it into another account that you have with Authorize .NET.
What are the ways that I can access my account?
You can access your account in a number of ways. The first one is through the website where you registered with Authorize.Net, the second one is through their various mobile apps which are available on most platforms including iOS and Android.
You can also access the account through your email.
What is a merchant bank account?
A merchant bank account is a debit card that you can use to receive money from your customers.
What is an electronic check?
An electronic check is a way of receiving money without having to wait for the actual money to come in.
By using this feature, you can get your money right away while getting it recognized as an actual payment.
It helps you complete many transactions at once rather than individually.
Is Authorize.Net trustworthy?
Authorize.Net is a very trust worthy company. They have been around for a long time and have a good track record for getting the payments from the customers and refunding them in a timely manner.
So, you can be sure that your money is safe with them.
What are the benefits of using Authorize .NET?
Authorize .NET has many benefits. You can choose to understand all of them by visiting their website or you can read an article about it on this site, which is what you’re doing right now.
What is a batch?
A batch is a collection of transactions that have been authorized. They are usually processed at the same time rather than individually.
Is Authorize .NET a safe place to process credit cards?
Authorize .Net is as safe as any other site out there. It has been able to keep all its data secure and has never had any issues with leaking or losing data from its system.
So, it sure that payment details are completely safe with them.