Payment Service Providers

Stripe vs Authorize.Net: Which Is the Best for Your Business?

Read Time: 7 min

a developer using laptop to research stripe vs authorize net

Stripe and Authorize.Net are two of the most prominent players in the payment industry. Between them, they cater to millions of businesses throughout the US. There is now a huge variety in payment options for small businesses and deciding on a payment solution has become harder than ever.

Which one is best for your business? We’re about to find out!

Stripe vs Authorize.Net Overview

Before we look at the deeper details, let’s take a bird’s eye view of these two payment processing providers:

StripeAuthorize.Net
Fraud securityStripe Radar Advanced Fraud Detection Suite
All Major Cards AcceptedOpen API available Developer API available
Easy IntegrationYesYes
Transaction reportingYesYes
Invoicing optionsYes at an additional chargeYes at no additional charge
Recurring paymentsYes at an additional chargeYes at no additional charge
Multiple payment optionsYesYes
Account UpdaterYesYes
Chargeback protectionYesNo

About Stripe

Stripe is becoming one of the industry leaders in developing online payment solutions that are fully customizable. The company began offering services in 2009 and now has more than three million website users for online payment processing. If you want to get the most out of Stripe and its features, having a developer that can customize the platform for your business is advantageous – Stripe’s strength is its versatility.

Stripe benefits

Below, let’s explore the advantages built into the Stripe payment platform:

  • Clear pricing: Stripe provides transparent, affordable pricing that’s easy to understand. There are no hidden fees when you work with this company.
  • Developer flexibility: Stripe provides developer resources and customization options that make it easy to mold this gateway according to your needs.
  • Integrations: Stripe is compatible with a range of leading software platforms, such as POS software, accounting software, loyalty program software, and more.
  • Omnichannel payments: With Stripe, you can accept all types of payments like in-person, over the phone, or online options.

About Authorize.Net

Authorize.Net is a payment gateway platform owned by Visa. It was acquired in 2010 in an effort by the card network to join the payment gateway industry.

While Stripe offers all-in-one solutions to its customers, Authorize.Net has a bit more flexibility. This is a platform that provides clients with a choice: choose an all-in-one payment processing plan or bring your own merchant account and use Authorize.Net as a payment gateway.

Authorize.Net benefits

Let’s check out what makes Authorize.Net a good option:

  • Convenience: You will benefit from a straightforward, free setup process that will have your business accepting payments fast. Authorize.Net doesn’t complicate its services with too many advanced features.
  • Merchant Account Flexibility: Authorize.Net can act solely as a payment gateway, which means you have the flexibility to choose your merchant account.
  • Transparent Pricing: Authorize.Net is happy to provide clear, upfront pricing that you can trust. They also work with merchant service providers that offer Authorize.Net at a lower cost.
  • Omnichannel Payments: In a similar fashion to Stripe, Authorize.Net offers omnichannel payments. This means you can accept payments online, in person, and over the phone.

Stripe vs Authorize.Net Comparison

If these two payment platforms are on your shortlist, it’s time for a side-by-side comparison:

Plans and pricing

Let’s take a closer look at pricing for both Authorize.Net and Stripe:

Stripe Fees

Authorize.Net Fees

Payment Gateway-Only Plan

  • Monthly Fee: $25
  • Per-Transaction Fee: $0.10
  • Daily Batch Fee: $0.10

All-in-One Plan

  • Monthly Fee: $25
  • Per-Transaction Fee: 2.9% + $0.30

As you can see, if you choose the all-in-one payment processing route, Stripe fees are generally more affordable. However, if you choose to go with the payment gateway-only plan, you can connect Authorize.Net to a merchant account that offers lower credit card processing fees that are cheaper than Stripe and Authorize.Net.

illustration of someone paying on a mobile phone to represent credit card processing

Want the lowest rates in the industry?

Key features

Both Stripe and Authorize.Net come loaded with features. Stripe offers identity verification tools, invoices, payment links, billing resources, card readers, and more.

On the other hand, you find many of the same features at Authorize.Net. The company offers advanced fraud protection, recurring payments, mobile credit card readers, digital invoicing, quick checkout portals, customer information management tools, and more!

Integration options

Integration options are a strong point for both Stripe and Authorize.Net. However, Stripe does have more options. With Stripe, you have access to the “Stripe App Marketplace,” which has hundreds of integration options. You can find an integration for everything, from email marketing platforms to carbon footprint tracking tools.

Authorize.Net users have access to more than 140 integrations. Some of the world’s biggest website builders are compatible with it, including BigCommerce, Magento, WooCommerce, and more.

Ease of use

When it comes to ease of use, Authorize.Net takes the cake. While Stripe is a favorite amongst many American business owners, it isn’t as straightforward to use as other payment service providers. This is because Stripe has so many advanced developer features, which can be challenging to understand for a novice.

When you first arrive at the Stripe website, you might be overwhelmed by the number of product options available to you. Stripe does not bundle these together in easy-to-understand formats. While this feature-rich platform has plenty of upsides, it can be difficult for small businesses to decide which features they need.

Customer support

At Authorize.Net, customer support is a strong point. The company provides a range of contact points for its clients – you can reach a live person via telephone 24/7. There’s also a “Support Center” on their website with many troubleshooting resources for Authorize.Net users.

Previously, Stripe was notable for not offering 24/7 phone and chat support, but in 2018, the company changed its tune and started offering around-the-clock live support.

Additional services

In terms of additional services, both Stripe and Authorize.Net offer extensive developer features and resources. At Stripe, you can find full API references, SDKs, plugins, code samples, and more.

While there’s no doubt that Stripe is one of the industry leaders in the development space, Authorize.Net also has plenty of resources in this department. The company offers an API, as well as various resources in its developer center.

Also, both Stripe and Authorize.Net offer physical card readers to businesses that need hardware for in-person payments. These card readers are affordable and can work with smartphones and other devices.

Key Differences Between Stripe & Authorize.Net

Consider these key differences when comparing Stripe and Authorize.Net as there are some features that are only offered by Stripe:

a customer paying on a terminal using their phone after a merchant decided between authorize.net vs stripe

Features only Stripe offers

  • No monthly fee: Stripe doesn’t charge a monthly fee, which is an excellent feature if you want to test the waters or if you don’t process large payment volumes.
  • Cheap in-person processing: There’s no doubt that Stripe offers the cheapest in-person payment processing out of these two providers – at 2.7% + $0.05 per transaction, it’s hard to beat.
  • Extensive eCommerce integrations: Users can easily integrate with the world’s most advanced eCommerce tools and even the biggest companies, like Amazon, use Stripe’s open API.

Features only Authorize.Net offers

Now it’s time for our Authorize.Net vs Stripe comparison to explore what features only Authorize.Net offers:

  • Payment gateway-only plans: If you want to bring your own merchant account, only Authorize.Net allows you to separate its payment gateway services from its payment processing services.
  • Easy Setup: Authorize.Net doesn’t overwhelm its new clients with complex features and developer options. The company offers free setup services that make onboarding simple.
  • Fewer payment freezes: Stripe is known to freeze payments for customers without clear explanations. Authorize.Net can reduce your exposure to these types of issues.

Authorize.Net vs Stripe: Which Is Better for my Business?

At the end of the day, the best option for your business will depend on your needs, revenue, and industry. Let’s check out which platform is better for your needs:

Stripe is better for all-in-one payment processing

If you have an in-house team of developers that can transform Stripe into the perfect platform for your business, this is the best option. Stripe’s primary focus is on being a developer-friendly platform that is fully customizable.

Authorize.Net is better for merchant account flexibility

If you want to benefit from the flexibility of having your own merchant account provider, there’s no doubt that Authorize.Net is the best option. They offer affordable, easy-to-use payment gateways that are compatible with various merchant account providers. This option offers you complete control over your business’s payment processing.

Are There Alternatives To Stripe & Authorize.Net?

While Stripe and Authorize.Net offer excellent services to their clients, there are various other options available to small business owners. Let’s explore three popular alternatives below:

PayPal

PayPal is a payment service provider that offers digital wallets, online payment gateways, payment processing, and more. While this payment platform is famous for its online solution, it acquired iZettle in 2018, making it a competitor in the in-person payment space. If you want to benefit from a payment processing platform that is simple to use and familiar to hundreds of millions of consumers, PayPal is a good option.

Square

Square is notable as a payment solution for small retail businesses. However, they do have an eCommerce platform that offers pricing at 3.4% + $0.30. Additionally, Stripe is a safe payment service provider known by thousands. If you plan on scaling, it might be best to go with Stripe.

Merchant account

While Authorize.Net works with existing merchant accounts, you can also choose to work with merchant account providers that offer their own payment gateways or partner with other payment gateways. As getting a merchant account provides greater control over payments, it’s a popular option with business owners that want independence from payment service providers.

Save when you bundle your merchant account and Authorize.Net gateway

graphic showing a person paying via virtual terminal

Final Thoughts on Stripe vs Authorize.Net

With Stripe, Authorize.Net, and a range of other payment solutions available to your business, there’s never been a better time to upgrade. If you want an all-in-one solution for your business, then Stripe offers a versatile, developer-friendly platform for all industries. However, if your priority is partnering an existing merchant account with an advanced payment gateway, look to PaymentCloud. We can offer a bundled package that includes a merchant account and an Authorize.Net payment gateway.

Article Sources

  1. Stripe. “Price change for manually entered card payments“. Accessed November 14, 2022.


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