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I am facing error during the placeorder using method authorised.net in magento:
"Gateway error: (TESTMODE) The merchant login ID or password is invalid or the account is inactive.
I was having this exact same problem. I used the information here to solve the problem:
http://support.authorize.net/authkb/index?page=content&id=A415&pmv=print&impressions=false
The short answer is that you need to change the Gateway URL from the default (that you would use with a real account):
https://secure.authorize.net/gateway/transact.dll
to (use with your test account):
https://test.authorize.net/gateway/transact.dll
To do this in the Magento Dashboard:
Go to System -> Configuration
Select Sales -> Payment Method (in the left sidebar)
Expand the “Authorize.net” option (I didn’t try the “Authorize.Net Direct Post” option, but it appears to use the same default Gateway URL, so this will probably work with that, too).
Change the “Gateway URL” from the default Gateway URL to the test Gateway URL (see above).
Click “Save Config” at the top.
Retry your test sale–it should work now!