Stripe VS Authorize.Net: Which Gateway & Payment Processor Is Right For Your Business?

eCommerce merchants searching for a payment gateway inevitably come across these two names: Stripe and Authorize.Net.

Although there are dozens of payment gateways available on the market, these two firms are among the most popular with both domestic and international merchants.

Below, we’ll compare Stripe VS Authorize.Net head-to-head, point out where they both excel, and come up short.

Stripe VS Authorize.Net Comparison

When it comes to payment gateway functions, Stripe and Authorize.Net cover very similar ground. The most important difference is their use cases: Stripe is a self-contained payment processing ecosystem, while Authorize.Net is a standalone gateway that can be paired with various merchant account providers.

Stripe VS Authorize.Net: At A Glance

Stripe and Authorize.Net differ in that Stripe includes its payment gateway as part of an all-in-one payment processing solution. Authorize.Net, on the other hand, is designed to work with an existing merchant account. Both companies offer a wide variety of integrations and handy features like recurring billing.

Both companies offer a powerful suite of payment services along with robust support for developers who want to integrate their services into their websites. They also provide excellent support for foreign eCommerce transactions. However, Stripe and Authorize.Net aren’t exactly the same types of companies.

Benefits Stripe Payments

Stripe is an excellent choice for businesses that are primarily online, and that want to be able to sell in international markets.

Like its major competitor PayPal, Stripe is a third-party processor offering a variety of business services on its platform. With no monthly fees or contracts, Stripe is able to provide a lot of value to eCommerce businesses at its base 2.9% + $0.30 per transaction price point, and even more functionality if you’re willing to pay some additional fees per transaction.

As a third-party processor, Stripe comes with some risks to account stability, so users should take care to make sure they’re in compliance with Stripe’s policies.

There’s a lot to Stripe, which you can read about in our full feature on how Stripe works.

Benefits Of Authorize.Net

Unlike Stripe, Authorize.Net is a payment gateway, not an online payment processor. That means you’ll need a merchant account in addition to Authorize.Net if you want to process credit cards. For businesses that are happy with their merchant account, there’s a pretty good chance Authorize.Net will be compatible with it.

Authorize.Net provides numerous business-enhancing features, including the ability to process ACH payments and reach international markets.

How you go about getting Authorize.Net can make a big difference when it comes to pricing. In most cases, you’ll want to get it through your merchant account provider.

What’s The Difference Between Stripe & Authorize.Net?

The main difference between Stripe VS Authorize.Net is that Stripe is a complete payment processing platform while Authorize.Net is a payment gateway.

A payment gateway connects payment processors to an eCommerce site or point of sale hardware. It does not actually process the transaction. While payment gateways are required for eCommerce transactions, they’re optional for in-person ones. Additionally, companies like Stripe combine the functionality of payment processing and a payment gateway. However, Stripe’s payment gateway cannot be used separately from the rest of the service.

Both Authorize.Net & Stripe Offer…

• Pre-built and customizable checkouts
• eCommerce integrations
• Multiple currency support & exchange
• Advanced security features
• ACH payments
• Payment gateway infrastructure for credit card payments
• Recurring billing/subscription payments

Only Stripe Payments Offers…

Only Authorize.Net Offers…

Country Availability For Stripe & Authorize.Net

Stripe has one of the bigger international reaches in the business and is available in 47 countries. Authorize.Net’s reach is a bit smaller, covering the US, Canada, UK, Europe, and Australia.

Do Stripe & Authorize.Net Restrict What You Can Sell?

Stripe maintains restrictions on the types of businesses it supports. This is a common practice for third-party processors. Authorize.Net on the other hand, supports most legal industries. However, it will have to be paired with a high-risk payment processor if you’re in a high-risk industry.

FAQs: Stripe VS Authorize.Net

Stripe VS Authorize.Net Pricing

The pricing schemes of Stripe and Authorize.Net both require some elaboration.

Stripe’s pricing model tends to be additive, that is to say, advanced features add additional costs to the 2.9% + $0.30 base fee. That said, there’s a lot that’s included in the base fee, so choose your features carefully. Read our Stripe pricing guide for a full breakdown of how these costs work.

Authorize.Net offers an All-In-One package that pairs the service with one of its payment processing partners. While convenient, we don’t generally recommend this option. It’s often cheaper to get Authorize.Net in a bundle through a payment processor than vice versa, or even as a standalone option. If you’re using Authorize.Net as a standalone gateway, each transaction will add $0.10 to your transaction costs, an additional $0.10 per day for a batch fee.

Which Is Cheaper, Stripe Or Authorize.Net?

Since Authorize.Net comes in a variety of bundles with very different pricing, this question doesn’t have a definitive answer. However, Stripe’s standard pricing will generally be cheaper than Authorize.Net’s All-in-One pricing.

Stripe VS Authorize.Net: Notable Feature Differences Discussed

Stripe and Authorize.Net cover a lot of the same ground but do so in slightly different ways. Let’s take a closer look.

Stripe is designed to be a one-stop shop for your payment processing needs. Authorize.Net focuses on a much smaller part of the payment processing environment. If it offered everything that Stripe does, it wouldn’t be Authorize.Net anymore. In fact, Stripe can be overkill for a lot of businesses. If all you’re looking for is a payment gateway, it just doesn’t make sense to choose Stripe over Authorize.Net.

Authorize.Net has some niches where it excels, particularly where security is concerned, but let’s give credit where credit is due: Stripe can just plain do a lot more than Authorize.Net. From its more comprehensive support for global eCommerce to its more flexible development environment and its plethora of add-on features, it lives up to its “full-stack” claims.

Let’s take a closer look at how their features compare:

Which Is Best For My Business Needs: Authorize.Net Or Stripe?

Stripe and Authorize.net are built for different use cases, so as you might expect, there isn’t a one-size-fits-all winner between these two services.

Choose Stripe Payments If…

Choose Authorize.Net If…

Neither Option A Good Fit For You? Try These Alternatives To Stripe & Authorize.Net

If you got this far into our Stripe VS Authorize.Net and aren’t convinced that either service is right for your business, you may very well be correct!

You may also want to consider these alternatives. For a more complete look at your options, also check out our complete list of the best payment gateways.

Braintree

Braintree is a PayPal-owned company that offers a payment gateway and integrated processing services and is very similar to Stripe in many ways. It offers the same flat-rate pricing (2.9% + $0.30 per transaction) and extensive international support but isn’t quite as overwhelming in its options and add-on services.

PayPal

If you’re looking for a Stripe alternative with brand name recognition, PayPal’s a no-brainer. PayPal covers most of the same bases as Stripe. It also offers a standalone gateway service comparable to Authorize.net. Like Stripe, it’s a sprawling platform with tons of optional add-ons. Unfortunately, PayPal’s recent rate hikes make it a bit less competitive than it used to be.

Square

Square is another popular “full-stack” payment services provider. Compared to Stripe and PayPal, Square is a bit more focused on brick-and-mortar transactions, offering a wide variety of productivity-related functionality as well as POS hardware. Square supports eCommerce, but don’t expect the international support that Stripe offers.

Comparing Authorize.Net & Stripe Payments: The Final Verdict

The battle between Stripe vs. Authorize.Net comes down to a big hearty buffet vs. a tasty side dish that can be served with almost any meal. Newer businesses that don’t want to add unnecessary complexity will probably prefer Stripe’s comprehensive payment services. Veteran businesses with stable merchant accounts that want to add gateway functionality may appreciate the flexibility Authorize.Net offers them.