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Stripe vs. Authorize.net: Credit Card Processing Comparison
This comparison guide reviews the similarities and differences between Stripe and Authorize.net and how each credit card processor measures up in terms of price and features.
Table of Contents
No matter what type of business you run, the ability to accept online payments in a variety of methods, like credit and debit cards, electronic wallets and prepaid cards, is crucial. The best payment processors allow you to do just that by collecting financial data from the customer, verifying that information with the bank or payment provider and processing the transaction.
A full payment processing system needs a payment processor, a payment gateway and a merchant account. Some payment processing services, such as Stripe, offer an all-in-one solution while others only offer one of these elements. Authorize.net, for example, is a top payment gateway service, but it doesn’t offer the other components. We’ve compared Stripe and Authorize.net to help you decide which online payment processor is best for your business.
Who is Stripe For?
Stripe is an all-in-one payment processing service that includes a merchant account, payment gateway and payment processor. It is an ideal choice for online businesses that want a straightforward, complete solution to accept various mobile or online transactions. For businesses with a global customer base, Stripe is especially adept at handling international transactions.
No matter how your customers pay, fees are low. It’s also fairly customizable, thanks to its modifiable application programming interface (API) and toolkit, so your payment screens align with your branding. Stripe provides card readers, POS devices and a Tap to Pay function, making it a great choice for businesses that have a physical presence.
Ultimately, Stripe is a great choice for tech companies or more developed online enterprises that want flexible payment solutions, especially if you don’t already have some kind of payment-related service setup. It’s also a better choice if you’re looking to get your e-commerce business up and running immediately.
Here are some of the main benefits of using Stripe:
- It’s a full-fledged payment service provider that includes a merchant account.
- It accepts over 100 payment methods, including mobile payments.
- You can process payments from 195 countries in 135 currencies.
- It includes options for POS and card readers.
- You can customize various aspects of your POS or checkout system.
Who is Authorize.net For?
Authorize.net is a much simpler payment gateway service and its service offerings are more limited than what Stripe provides. But it’s a great option if you’re looking for something to integrate with your existing e-commerce platform and have an existing merchant account. If you do need a merchant account, the company can connect you to one of its partnered providers.
We found that Authorize.net is easier to understand and integrate from start to finish. Because you’re not tied to a merchant account, if you decide to switch, you can still keep using Authorize.net. This makes it a great choice for businesses that prioritize simplicity and flexibility, especially those with a growing sales volume looking to shop around for lower credit card processing fees.
Businesses that need to send a lot of invoices or are subscription-based might save money with Authorize.net as it offers recurring billing and invoicing features at no extra cost. It also includes excellent fraud detection tools and 24/7 customer service.
Here are the main benefits of using Authorize.net:
- It provides an exceptional payment gateway service that is easy to use.
- It includes extra features at no cost, such as automatic recurring billing and customer information management.
- It can set you up with one of its partnered merchant accounts and payment processing service providers.
- S.-based businesses can accept U.S. dollar payments from around the world.
Stripe vs. Authorize.net Comparison
Are you still on the fence about which service is best for your business? Let’s go into more detail about these comparisons.
Plans and Pricing
Stripe
Stripe only offers two plans: Standard and Custom. Standard is the ideal choice for most companies because it includes everything you need to begin accepting online payments. There are no monthly or hidden fees- you only pay the credit card processing fees when you accept payments. The Custom plan is better for enterprise companies with large payment volumes that need custom payment options.
We love that Stripe’s processing fees are affordable and transparent. Stripe offers a ton of services with distinct fees, but we think these prices are most relevant to small businesses:
- Online transactions (Payments):9% plus 30 cents
- In-person transactions (Terminal):7% plus 5 cents
- International cards: Plus 1.5%
- Manually entered cards: Plus 0.5%
- Currency conversion: Plus 1%
- Tap to Pay: Plus 10 cents
- Custom checkout domain: $10 per month
- Chargebacks: $15
- Invoicing: Plus 0.4%
Rates for the Custom plan vary but expect to get a volume discount. Stripe also offers a $59 card reader and POS terminals for $249 or $349.
Authorize.net
Authorize.net offers three plans, all with a monthly fee of $25. There are no contracts, setup or cancellation fees. Each plan sets you up with Authorize.net’s payment gateway and gives you access to features like digital invoicing and recurring payments. The All-in-One plan is for businesses that don’t already have a merchant account as Authorize.net will pair you with one of their partners for this service. The other plans are for businesses that already have a merchant account.
Here’s how the three plans break down:
Criteria | All-in-one | Payment gateway and e-check | Payment gateway |
|---|---|---|---|
Monthly fee | $25 | $25 | $25 |
Processing rate | 2.9% plus 30 cents | e-Check: 0.75% Credit card: Plus 10 cents Daily batch fee: 10 cents | Credit card: Plus 10 cents Daily batch fee: Plus 10 cents |
While Authorize.net charges competitive fees, the flat monthly plan rate can make it a bit pricier than the competition. However, you can get access to Authorize.net as a payment gateway through a package deal when signing up for a merchant account and you may end up paying less than if you go through Authorize.net’s sign-up page.
Payment Features
Stripe
Stripe comes with a payment gateway, merchant account and payment processing abilities. You can start accepting customer payments immediately and Stripe accepts over 100 payment methods, including payment links and a variety of mobile wallets. Plus, the company offers tools ─ like a custom user interface toolkit and API, letting you customize various aspects of your marketplace and checkout process.
We appreciate that through third-party apps, Stripe lets you offer your customers the possibility to pay later in installments. The service also excels at helping your business gain a global reach by accepting payments from 195 countries in 135 currencies, including popular local payment methods.
Authorize.net
Authorize.net only includes a payment gateway, but the company can connect you to one of its partners if you need a merchant account or payment processor. Aside from its basic payment gateway service, Authorize.net offers a simple checkout solution, invoicing controls and automated recurring billing.
You can accept credit cards from all major companies, Apple Pay, PayPal and e-check. You can also send payment links and quick response codes. Authorize.net isn’t as powerful for international payments as Stripe. Businesses located in the U.S., Canada or Australia can accept payments from anywhere in the world. However, U.S.-based companies can only receive payments in U.S. and Canadian dollars.
Ease of Use
Stripe
Stripe’s user interface and dashboard are both well designed. However, if you want to maximize this payment service provider’s toolkit, it’s best if you are comfortable using the developer API and in-depth controls. To fully customize your checkout process, you may need to hire a freelance developer, but what the complexity on your end will be worth it for the seamless buyer experience Stripe provides your customers.
Authorize.net
Authorize.net is much easier to use and set up. The service easily integrates with your existing merchant account or payment processing service. Additionally, if you want to be set up with one of its partnered payment processors for merchant accounts, the company can walk you through the process.
The only downside is that Authorize.net cannot guarantee how long a new merchant account might take to grant approval. You might be able to start taking payments within the hour, but you also might need to wait a few days.
In-person Payments
Stripe
Stripe offers multiple ways to accept in-person payments, and the rate is less than for online payments at 2.7% plus 5 cents. For businesses that don’t want to spend a lot on hardware, you can download Stripe Terminal to your mobile device to accept mobile payments and for an additional $0.10 per transaction, enable it to accept contactless payments. Stripe also offers a card reader for $59 and two handheld smart readers for $249 and $349.
Authorize.net
Authorize.net charges the same rate for all payments, which makes it a more expensive choice if you plan to take payments in person. It doesn’t offer any of its own card readers or POS devices, but Authorize.net’s homepage does link to a third-party seller that offers a compatible card reader for $189. We were disappointed that Authorize.net doesn’t offer Tap to Pay functionality as it can help businesses save money while processing in-store payments.
Additional Services
Stripe
Stripe offers a wide array of services beyond its payment processing features. For instance, Stripe Sigma is an advanced reporting system you can access from the main dashboard. There’s also Radar, a fraud monitoring tool that allows you or other merchants to review and override transactions. Stripe can verify customer identities and bank accounts and also automatically updates credit card data in your customer vault to ensure that subscriptions are current.
Stripe has tools to make invoicing painless and features to automate tax calculations and collection, even globally. We especially love that Stripe lets you issue custom-branded cards and implement a climate-forward policy by directing a percentage of your revenue to carbon removal. Plus, Stripe has tons of possible integrations, including Zoho CRM, Xero, Constant Contact and Stockify.
Authorize.net
Authorize.net offers a handful of services beyond its basic payment gateway. That includes a full customer information manager (CIM) suite, where you can store customer information and pull it up at any time. This could be helpful for employees at your brick-and-mortar store or allow you to access sensitive information online. Plus, you can connect Authorize.net with nearly 150 external integrations, like Commerce Sync and Chargify.
You can also process e-checks, send invoices, accept recurring payments, update credit card information automatically with Account Updater and get advanced fraud detection. The advanced fraud detection suite is included for free with your account and comes with 13 filters you can customize to block fraudulent transactions. Account Updater and e-check processing cost extra.
Support
Stripe
Stripe provides customer support via three plans, but you’ll have to contact sales to see how much they’ll cost you. No matter the plan, you can get assistance through three major channels ─ email, live chat and phone. You can take advantage of 24/7 support, and the live chat response usually only takes a couple of minutes. You’ll also benefit from an extensive knowledge base with a ton of articles to help troubleshoot any issue that might arise. We especially love that there is a separate section for assistance with APIs and software development kits. Premium support plans include personalized insights and recommendations.
Authorize.net
Authorize.net offers a 24/7 support center, which you can contact via online chat or by phone. You can also open a support ticket if you have a more complex question or if a customer service representative isn’t immediately available to help you. You can also search the online support center for articles to help troubleshoot common problems. Authorize.net also runs a blog that covers information on running a business and customer success stories.