Authorize net vs Stripe

If you are having an e-Commerce website, payment gateways provide a secure way to accept credit card payments. So, when you pick up the right payment gateway, your customers find it convenient and easy to buy from your online store.

And, if your gateway makes it difficult for your customers to transact online, they will abandon your site and visit your competitor’s online store instead. This article on Authorize net vs Stripe covers everything you need to know about these payment gateways.

MAIN DIFFERENCES BETWEEN AUTHORIZE NET AND STRIPE:

Authorize net needs a merchant account to operate, but Stripe doesn’t
Authorize net has advanced fraud detection, and Strip doesn’t
Compared to Authorize net, Stripe has more 3rd party integrations
Authorize net charges an extra fee for set-up, whereas Stripe doesn’t

AUTHORIZE NET FEATURES:

Authorize net needs a merchant account to operate. So, you need to have one for your business.

PAYMENT TYPES – Authorize net works with PayPal, Apple Pay, Visa Checkout, E-Check, and Chase Pay. Also, it works efficiently with almost every credit card such as American Express, Discover, MasterCard, Visa, and JCB.
ONLINE PAYMENTS – You can set up Authorize net to accept online payments. However, you need certain coding and development skills. Moreover, if you have a web developer for your website, this is not a big hurdle. But if your business is small, you will want something that is easy to set up and doesn’t require coding skills.
OFFLINE AND RETAIL PAYMENTS – With Authorize net you can accept both offline and retail sales. This payment gateway provides a Virtual Point of Sale. And, it is included in their All-in-One Plan.
EASE OF USE – Authorize net is perfect for businesses that process a lot of transactions. It means, if you are having a small business, this is not the friendly system you might have. From the initial setup of your business account to accepting payments take a longer time compared to other systems that don’t require you to have a merchant account. Also, they don’t have one-click integration and credit card plug-and-play reading features.
REPUTATION AND SECURITY – When it comes to reputation and security, Authorize net has a strong one. Moreover, it is PCI compliant that you can find on all major payment providers.
APPS AND INTEGRATIONS – Using their APIs, developers can integrate with Authorize net. However, don’t expect the one-click integration feature that Stripe provides.
DATA PORTABILITY – In the name of security, the Company has made a trade-off facility. The system allows you to store customer information such as payment methods, addresses, and so on in a secured manner. However, all the information is encrypted within the system. And, getting the data out of this gateway is a complex affair and expensive.
PRICING – When it comes to pricing, the Company provides three different price structures.
ALL-IN-ONE: MONTHLY CHARGES OF $25 ALONG WITH 2.9% AND $0.30 PER TRANSACTION
PAYMENT GATEWAY ONLY: MONTHLY CHARGES OF $25 ALONG WITH $0.10 PER TRANSACTION AND $0.10 DAILY BATCH FEE
ENTERPRISE SOLUTIONS: PROVIDES CUSTOM PRICES FOR LARGE BUSINESSES
SUMMARY – AUTHORIZE NET ISN’T THE BEST CHOICE FOR A MAJORITY OF SMALL BUSINESS OWNERS. THAT BECAUSE OF THE HIGH MONTHLY FEES AND OTHER COMPLEXITIES. HOWEVER, FOR LARGER BUSINESSES HAVING A MERCHANT ACCOUNT AND HAS A HIGH VOLUME OF ONLINE SALES, THE AYMENT GATEWAY ONLY’ PLAN IS VERY COST-EFFECTIVE.

STRIPE FEATURES:

Stripe is the most popular payment gateways favored by many small businesses. They help accepting payment through credit cards both easily and quickly. It is a simple, powerful, and secure payment processor with lots of options. Stripe comes in handy whether you are selling in-person, online, or both.

PAYMENT TYPES – Stripe works with almost all major debit or credit cards such as American Express, Discover, Diners Club, JCB, MasterCard, and Visa. Also, consumers can pay through a bank account, which works in favor of subscription businesses and service providers.
ONLINE PAYMENTS – Stripe integrates with many platforms such as Shopify, WordPress, BigCommerce, Wix, SquareSpace, and others to accept online payments. However, if you want to access other intuitive features through Stripe, you can hire a web developer.
OFFLINE AND RETAIL PAYMENTS – When you use an app like ChargeStripe, it allows you to accept offline and retail payments. All you have to do is type, scan, or swipe a customer’s card details and accept payments even from your smartphone from anywhere.
EASE OF USE – This payment gateway can be simple or complex as you like it to be. While the majority of small businesses need an account to use Stripe, an e-Commerce store like Shopify or SquareSpace integrates with Stripe easily for online sales. Whereas, for retail and offline sales, people use apps like ChargeStripe. Moreover, the setup is very easy.
REPUTATION AND SECURITY – Compared to Authorize net, Stripe has set the bar when it comes to security for the payment processors. Their system never sends credit card information to your site. Therefore, you don’t have to worry about storing those data in a secured way, even when you have a developer creating an online store for you.
APPS AND INTEGRATIONS – Stripe provides you with a variety of integrations with the most popular apps. Also, they have increased their efficiency in terms of security and technology. They have acquired several companies that specialize in POS, authentication/security, and payment. For mobile payment, ChargeStripe is an authorized Stripe partner.
DATA PORTABILITY – Suppose you have recurring payments or subscriptions and want to move to another system. Stripe provides this feature and you can do that without re-entering customer information.
PRICING – Here is what Stripe provides.

CARD TRANSACTIONS ONLINE: 2.9% ALONG WITH $0.30 PER TRANSACTION
ACH TRANSACTIONS ONLINE: 0.8% PER TRANSACTION (CAPPED AT $5).
CARD READERS: $99 AND $129 INTERNATIONALLY
CHARGESTRIPE: $99 CARD READER OPTIONAL AND 1% PER TRANSACTION

SUMMARY – A stripe is a great option for small businesses. It has basic features and a list of app integrations. Also, it has developer tools for robust setups. Taking payments is fast and it takes mere 5 minutes to set up the ChargeStripe app.

CONCLUSION:

Both platforms make the payment process simple and fast. Because you don’t need a merchant account and zero monthly fees, Stripe is preferred by many businesses.