Square vs Authorize.net: Which One Fits Your Business?

For companies of all sizes, selecting the appropriate payment processor can make all the difference. Square and are two widely recognized names in the payment industry, but they cater to different audiences and use cases.

Square is known for simplifying in-person and online payments with hardware and software designed for quick setup. Meanwhile, Authorize.net, owned by Visa, has long been a leader in secure online payment gateways, ideal for businesses that require advanced integration and fraud protection.

In this guide, we’ll delve into the strengths and limitations of each platform, examining their pricing, ease of use, features, and the types of businesses they best serve.

Square vs. Authorize.net: An Overview of Two Payment Giants

When comparing Square and Authorize.net, it’s essential to understand their origins and core focus.

• Square was launched in 2009 to help small business owners accept card payments anywhere using a simple card reader. Over the years, it has evolved into a comprehensive payment ecosystem, offering hardware (such as card readers and registers), software (including POS apps, invoicing, and analytics), and even financial tools like loans and checking accounts.
• Authorize.net, founded in 1996 and acquired by Visa in 2010, is a pioneer in online payment gateways. Instead of offering physical hardware, it provides the technology that connects a business’s website or application to a payment processor, allowing customers to pay securely online.

Square’s Approach

Square’s all-in-one model makes it a standout choice for small businesses seeking a comprehensive, out-of-the-box payment solution. With its simple account setup, free POS software, and affordable card readers, you can start accepting payments quickly without needing separate merchant accounts or third-party gateways.

Authorize.net’s Approach

Authorize.net focuses on flexibility and security for online businesses. It enables companies to include payment processing into specially designed e-commerce platforms, apps, or websites. Its robust fraud prevention tools and support for alternative payment methods (like PayPal and eChecks) make it ideal for high-volume merchants and subscription services.

Comparison Table: Platform Highlights

Feature	Square	Authorize.net
Founded	2009	1996 (Visa-owned since 2010)
Main Focus	POS and in-person + online payments	Online payment gateway
Hardware Included	Yes (card readers, terminals)	No hardware (online-focused)
Best For	Small businesses, retailers, and food services	Established e-commerce and SaaS businesses
Onboarding Speed	Fast, beginner-friendly	Requires integration, developer-friendly
Fraud Protection	Standard PCI compliance	Advanced fraud detection suite

Square excels at offering a plug-and-play experience for smaller businesses, while Authorize.net delivers enterprise-grade payment gateway solutions for more complex online payment needs.

Key takeaway: Square is a versatile all-in-one solution that’s quick to set up for in-person and small online sellers, whereas Authorize.net is better suited for established online businesses needing customizable and secure payment processing:

Pricing and Fees: Which Option Saves You More Money?

Pricing is often the first consideration for businesses evaluating payment processors. A provider’s fee structure can significantly impact profit margins, especially for startups or small retailers.

Square Pricing Breakdown

Square’s transparent pricing structure appeals to smaller businesses and startups:

• No monthly subscription for basic accounts
• 2.6% + 10¢ for in-person card-present transactions
• 2.9% + 30¢ for online or invoice payments
• Free POS software with basic reporting and invoicing tools
• Optional paid upgrades for advanced features (like Square for Retail or Square for Restaurants)
• Hardware costs: basic magstripe reader starts at $10, while advanced terminals range from $149+

Square’s lack of a monthly fee makes it cost-effective for low-volume sellers, seasonal businesses, and startups.

Authorize.net Pricing Breakdown

Authorize.net has a more traditional pricing model:

• $25/month gateway fee
• 2.9% + 30¢ per transaction when using Authorize.net’s merchant account
• Optional setup fees depending on the merchant account providers
• Includes advanced fraud detection, recurring billing, and a virtual terminal in the monthly fee
• No hardware costs (primarily online-focused)

Authorize.net’s monthly fee is a critical factor, making it less appealing for low-volume businesses but worthwhile for high-volume merchants who can offset the recurring cost.

Cost Comparison Table

Pricing Factor	Square	Authorize.net
Monthly Fee	$0	$25
In-person Transaction Fees	2.6% + 10¢	Not applicable
Online Transaction Fees	2.9% + 30¢	2.9% + 30¢
Hardware Costs	Starts at $10	None
Best For	Small businesses & startups	Medium-to-large e-commerce businesses

Cost-Saving Considerations

• Square is more cost-effective for businesses with low transaction volumes or those primarily focused on in-person sales.
• Authorize.net’s monthly fee pays off for businesses that process higher transaction volumes or require advanced features, such as recurring billing.

Key takeaway: Square is ideal for startups and small businesses with limited sales volume, while Authorize.net is cost-effective for established businesses that process higher volumes and require advanced features like fraud protection:

Ease of Use and Integration: Do They Fit Into Your Workflow?

Ease of setup and integration often determines how quickly you can begin accepting payments. Businesses with fewer technical resources will prioritize simplicity, while others may prioritize flexibility and customization.

Square’s Ease of Use

Square is built for speed and simplicity:

• Fast signup process—create an account online in minutes
• Minimal setup with free POS software included
• Plug-and-play hardware, ready to use upon arrival
• User-friendly dashboard for managing sales, refunds, and reports
• Integrates easily with platforms like WooCommerce, Wix, BigCommerce, QuickBooks, and Xero

Square is ideal for non-technical users who want to avoid hiring developers or dealing with complex configurations.

Authorize.net’s Integration Process

Authorize.net, while robust, requires more effort to set up:

• Designed to integrate with e-commerce platforms, custom websites, or POS systems
• Often requires a developer’s assistance to configure APIs and payment gateways
• Provides extensive fraud detection and reporting tools for advanced needs
• Works well with popular e-commerce platforms like Shopify, Magento, and PrestaShop

Integration Comparison Table

Aspect	Square	Authorize.net
Setup Time	Same-day setup possible	Requires integration effort
Developer Required	No	Often yes, for custom integrations
Hardware Support	Yes (POS devices)	No (primarily software gateway)
User-Friendliness	Beginner-friendly	Moderate to complex
Third-Party Integrations	Extensive for SMBs	Ideal for enterprise-grade needs

Square is faster for beginners and small businesses, while Authorize.net provides flexibility and scalability for businesses that can manage technical setup.

Key takeaway: Square wins on simplicity and ease of use, while Authorize.net offers deeper customization for businesses with technical support and complex payment needs:

Features and Tools: Beyond Just Payment Processing

Payment platforms today offer far more than just transaction processing. Features such as analytics, invoicing, and fraud detection help streamline operations and enhance security.

Square’s Features

Square provides a wide range of built-in tools:

• POS app with inventory management and analytics

Mobile card readers for in-person sales

• Online store builder for sellers without websites

Invoicing and payment links for remote billing

• Square Banking for business loans and checking accounts

Employee management tools with time tracking

Square is ideal for businesses seeking an all-in-one solution without the need for additional software.

Authorize.net’s Features

Authorize.net’s feature set targets businesses with higher complexity:

• Advanced fraud detection suite (customizable filters)
• Recurring billing for subscription-based models
• Virtual terminal for manually keyed-in payments
• Support for alternative payment methods like PayPal and eChecks
• Integrates easily with shopping carts and custom checkouts

Feature Comparison Table

Feature	Square	Authorize.net
POS Tools	Built-in	Not included
Fraud Protection	Standard PCI compliance	Advanced fraud detection suite
Subscription Billing	Basic invoicing	Full recurring billing system
Online Store Support	Yes	Requires integration
Analytics & Reporting	Comprehensive	Focused on online payment data

Square excels in offering everything you need for front-end sales and physical operations, while Authorize.net shines in backend security and advanced billing.

Key takeaway: Choose Square for physical stores needing comprehensive POS tools and simple online selling, and Authorize.net for advanced billing, fraud detection, and custom online checkouts:

Best Fit for Business Types: Who Should Choose Square and Who Should Choose Authorize.net?

The best payment processor depends on your business size, sales volume, and whether you sell primarily online or in person.

Square Is Best For

• Brick-and-mortar stores, cafés, and restaurants
• Mobile sellers like market vendors or service providers
• Startups needing quick setup and affordable pricing
• Businesses wanting both hardware and software in one package

Authorize.net Is Best For

• Established e-commerce businesses and SaaS platforms
• Merchants needing recurring billing for subscriptions
• High-volume sellers requiring advanced fraud protection
• Businesses with existing merchant accounts seeking a flexible gateway

Square caters to businesses that prioritize speed, affordability, and in-person sales, while Authorize.net is ideal for businesses that demand scalable, secure, and customizable online payment solutions.

Key takeaway: Small, in-person sellers will find Square ideal, while Authorize.net is better for established online and subscription-based businesses seeking enterprise-grade flexibility:

Conclusion

Square and Authorize.net both offer powerful solutions for accepting payments, but they serve different types of businesses. Square shines for simplicity, affordability, and all-in-one convenience, while Authorize.net is better for online businesses and high-volume merchants seeking advanced features and flexibility.

If you’re a small or new business that needs a quick setup, go with Square. If you’re running an established online store or subscription service, Authorize.net will give you the tools you need to scale.

FAQs

Is Square cheaper than Authorize.net for small businesses?

Yes. Square’s no-monthly-fee structure often makes it cheaper for startups and low-volume sellers.

Can I use Square and Authorize.net together?

No, they are separate platforms, though both can integrate with similar e-commerce tools.

Which platform is better for in-person sales?

Square excels at in-person transactions thanks to its POS system and mobile card readers.

Does Authorize.net support international payments?

Yes, Authorize.net supports international transactions in many countries, but you’ll need to check their supported regions and currencies.

Which one is more secure?

Both are PCI-compliant and highly secure, but Authorize.net offers more advanced fraud detection tools for online payments.

Additional Resources