Stripe VS Authorize.Net: Which Gateway & Payment Processor Is Right For Your Business?
Both Stripe and Authorize.Net offer a powerful suite of payment services along with robust support for developers who want to integrate their services into their websites.
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.
Table of Contents
- Stripe VS Authorize.Net Comparison
- Stripe VS Authorize.Net: At A Glance
- What’s The Difference Between Stripe & Authorize.Net?
- FAQs: Stripe VS Authorize.Net
- Stripe VS Authorize.Net Pricing
- Stripe VS Authorize.Net: Notable Feature Differences Discussed
- Which Is Best For My Business Needs: Authorize.Net Or Stripe?
- Neither Option A Good Fit For You? Try These Alternatives To Stripe & Authorize.Net
- Comparing Authorize.Net & Stripe Payments: The Final Verdict
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.
|Supported Business Types||Low-risk businesses||Businesses that already have a merchant account|
|What’s Missing|| Strong POS support
Good scaling options
|A reasonably priced merchant account bundle option|
|Next Steps||Visit Site
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
- All-in-one payment processing platform
- Predictable flat-rate pricing
- Excellent subscription and ACH tools
- Extensive international and multicurrency support
- Excellent developer tools and support
- Account stability issues
- Not suitable for high-risk businesses
- Some scaling issues
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
- Flexible payment gateway
- Predictable flat-rate pricing
- Excellent subscription and ACH tools
- Excellent security features
- Good developer tools and support
- Can be expensive depending on bundle
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…
- Credit card processing (without additional services)
- Support for local payment methods in international markets
- Cryptocurrency support and conversion (forthcoming)
- Support for payment processing outside of US and Canada
Only Authorize.Net Offers…
- A standalone payment gateway
- PayPal support
- Support for high-risk businesses
- Advanced customer information management
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
|Monthly Gateway Fee||N/A||$25|
|Credit Card Transactions||
|ACH Payments||0.8% ($5 max)||0.75%|
|Recurring Billing||0.5%-0.8%||As transaction type|
|International Card Fees||1.5%||1.5%|
|Currency Conversion Fees||1%||N/A|
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.
|Type of Service||Third-party processor||Payment gateway|
|Card Reader & Mobile POS||$59+ per card reader||By payment processor|
|Invoices||0.5% – 0.8%||N/A|
|Buy Now Pay Later Options||Klarna, AfterPay, Affirm||N/A|
|International Support||47 countries; 135+ currencies||US, Canada, UK, Europe, Australia; 11 currencies|
|Marketplace Tools & Support||(Stripe Connect)||(Partner Directory)|
|Developer Tools & APIs|
|Advanced Security||(Stripe Radar)||(AFDS)|
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…
- You need payment services in addition to a gateway.
- You’re doing business globally.
- Flat-rate processing is efficient for your sales volume.
- You want to be able to change currencies easily.
Choose Authorize.Net If…
- You already have a merchant account you like.
- You’re in a high-risk industry.
- You want a payment gateway that’s portable between processors.
- You need a customer management system.
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 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.
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 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.