Stripe vs. Authorize.net: Choosing the Best Payment Gateway for Your Business
Choosing the right payment gateway is key to making transactions run smoothly and keeping your customers happy. In this guide, we’ll explore Stripe vs. Authorize.Net to help you determine which option is the best fit for your business.
Stripe is known for its user-friendly interface and a broad range of features, including subscription management, customizable checkouts, and support for international payments. These capabilities make it a popular choice for many businesses.
Authorize.Net is a well-established payment gateway with a strong reputation for reliability and security. Since its inception in 1996, it has been trusted by many for its diverse payment options, robust fraud protection, and dependable recurring billing.
We’ll break down the main differences between Stripe and Authorize.Net, covering things like transaction fees, integration options, and customer support. This will help you make the best choice for your business. Let’s get started!
Understanding Stripe and Authorize.Net
Stripe and Authorize.Net are among the most widely used payment gateways today, each offering a range of features designed to meet various business needs.
Founded in 2010, Stripe is a cloud-based payment platform that has become very popular, especially among small businesses. It’s easy to use, doesn’t require a minimum revenue to start accepting credit card payments, and offers a full range of point-of-sale (POS) tools. Stripe supports over 135 currencies and lets businesses customize the checkout experience.
Authorize.Net, on the other hand, has been around since 1996 and is known for its reliability and security. It offers a wide range of payment processing services, including various payment options, strong fraud protection, and easy integration with different business software.
Each platform has its strengths and may suit different business needs. In the following sections, we’ll delve into their features and functionalities to help you decide which is the best fit for your business.
Features and Functionalities of Stripe
Stripe is known for its easy-to-use design and a wide range of features:
- Variety of Payment Methods: Stripe accepts major credit cards (like MasterCard, Visa, American Express, and Discover), digital wallets (such as Google Pay and Apple Pay), and other payment options (like bank debits and BNPL). This flexibility meets different customer needs.
- Global Reach and Currency Support: Stripe works with over 135 currencies and is available in 46 countries, making it a great choice for businesses operating internationally.
- Subscription Management and Customization: Stripe provides tools to manage recurring billing easily. You can also create custom payment forms, offer different payment methods, and provide localized options for international customers.
- Fraud Prevention and Risk Management: Stripe uses advanced tools to detect fraud and protect against chargebacks, including customizable fraud rules.
- Integration Capabilities: Stripe integrates smoothly with various business tools and platforms, including e-commerce sites and accounting software, making it easy to connect with your existing systems.
- Developer Tools and Pricing: Developers value Stripe’s SDKs, APIs, and testing tools. Stripe’s standard pricing is 2.9% + $0.30 per transaction, with custom pricing available for large or international transactions.
- Customer Service: Stripe offers 24/7 support via phone, live chat, and email, plus detailed documentation for developers.
Features and Functionalities of Authorize.Net
Authorize.Net, a well-established leader in payment processing, provides a strong set of features:
- Variety of Payment Options: Authorize.Net supports many payment methods, including major credit cards, digital wallets, PayPal, and eChecks.
- Advanced Fraud Prevention: The platform has a detailed fraud detection system with tools like transaction limits and IP address blocking to help prevent fraudulent transactions.
- Recurring Billing and Subscription Management: It makes managing recurring payments easy by automating billing for subscription services, handling customer accounts, and tracking revenue.
- Integration Capabilities: Authorize.Net integrates well with many business tools, including e-commerce platforms and CRM systems. This helps streamline your operations and reduces the need for manual data entry.
- Service Packages:
- All-in-One Plan: Covers gateway setup, eCheck processing, and merchant account creation for 2.9% + $0.30 per transaction.
- Payment Gateway Plan: Allows card payments through your existing merchant account, with a $0.10/ transaction fee and a $0.10 daily batch fee.
- Payment Gateway and eCheck Plan: Adds eCheck processing, with 0.75% per eCheck transaction or $0.10 per credit card transaction and a $0.10 daily batch fee.
- Additional Services: Includes digital invoicing and a Customer Information Manager (CIM) for managing and securing customer data.
- Global Reach and Support: Mainly focused on the US and Canada, Authorize.Net offers excellent support in these regions with 24/7 help via phone, online chat, and support tickets.
Pricing and Fees Comparison
Stripe’s pricing is straightforward with a flat rate of 2.9% + $0.30 per transaction (US cards), applicable to all credit and debit cards. For high-volume transactions, Stripe offers volume-based pricing and discounted rates for mobile wallet transactions.
Authorize.Net has a more complex pricing structure, including a $25 monthly fee and transaction fees of 2.9% + $0.30. Additional fees depend on the service plan and transaction types.
Pricing Comparison Table
| Stripe | Authorize.Net all-in-one | Payment gateway and eCheck | Authorize.Net payment gateway only | |
| Setup fee | $0 | $0 | $0 | $0 |
| Processing rates/transaction (US cards) | 2.9% + $0.30/successful transaction (online processing) | 2.9% + $0.30 | 0.75% eCheck, $0.10/transaction + daily batch fee $0.10 | $0.10 + daily batch fee $0.10 |
| Billing plans | Starter – 0.5% on recurring payments Scale – 0.8% on recurring payments and one-time invoicing | |||
| Monthly gateway fee | $0 | $25 | $25 | $25 |
| Chargeback fee | $15 | $25 | $25 | $25 |
| Recurring billing | 0.5% – 0.8% | as transaction type | as transaction type | as transaction type |
| International cards | 1.5% | 1.5% | 1.5% | 1.5% |
Example Transaction Scenarios
- Authorize.Net All-in-One Plan : For a $20 product, the transaction fee is $0.88, leaving $19.12 after fees.
- Authorize.Net Payment Gateway Only Plan: For a $20 product, the gateway fee is $0.10, leaving $19.90 after fees.
- Stripe Standard Payment Processing: For a $50 product, the transaction fee is $1.75, leaving $48.25 after fees.
- Stripe International Payment: For a $50 product, the total fee is $2.25, leaving $47.75 after fees.
Security and Data Protection
Both Stripe and Authorize.Net prioritize security with robust measures. Stripe offers end-to-end encryption, tokenization, and PCI-DSS compliance, while Authorize.Net provides advanced fraud detection and PCI-DSS compliance. Both platforms ensure secure data handling and compliance with data privacy regulations like GDPR and CCPA.
User Reviews and Experiences
User feedback is essential when selecting a payment gateway. For instance, on G2, Stripe is appreciated for its ease of use, wide range of features, and responsive support. However, some users have reported issues with stricter account verification and occasional payment delays. On the other hand, Authorize.Net is noted for its reliability, security, and extensive fraud prevention tools, but some users find its pricing complex and its customer support inconsistent.
Considerations for Choosing the Right Payment Tool
When choosing a payment gateway, consider:
- Transaction Volume and Needs: Assess your transaction types and volume, looking for features like recurring billing and advanced fraud prevention.
- Pricing and Fees: Review pricing structures and any hidden fees to ensure they fit your budget.
- Integrations and Compatibility: Check how well each gateway integrates with your existing systems and supports your payment methods.
- Security and Data Protection: Ensure the gateway meets your security and compliance requirements.
- Customer Experience: Choose a gateway with a user-friendly interface and smooth checkout process to enhance customer satisfaction.
- Customer Support: Evaluate the quality and availability of customer support.
Making the Final Decision
In summary, both Stripe and Authorize.Net are effective payment gateways with extensive features.
Authorize.Net is ideal if security is your top priority, you’re processing a high volume of transactions, and your business operates in the US, Canada, or Australia.
Stripe is a better fit if you want to accept a wide range of payment methods, have a global reach, and prefer transparent pricing. It’s also a great choice for start-ups or SaaS businesses due to its flexibility and ease of use.
123FormBuilder: Easy Payment Integration with Stripe and Authorize.Net
123FormBuilder integrates effortlessly with both Stripe and Authorize.Net, allowing you to accept payments directly through your forms. With Stripe’s easy setup and global support or Authorize.Net’s strong fraud protection and reliability, you can choose the option that best suits your needs.