Authorize.Net vs Stripe: Choosing the Right Payment Gateway for Your Business

Choosing the right payment gateway is one of the most crucial decisions for any online business. The gateway you select impacts how smoothly your customers pay, how much you spend on transaction fees, and even your ability to expand globally. Two of the most popular names in this space are Authorize.Net and Stripe, both offering secure, feature-rich solutions that cater to slightly different business models.

In this article, we’ll explore five key aspects to help you decide which gateway is best for your needs: business suitability, pricing, features, usability, and security.

Overview of Authorize.Net and Stripe: Which Fits Your Business Type Best?

Before diving into technical details or pricing, it’s important to understand the background and core focus of both payment gateways. This helps businesses align their choice with the type of customers they serve and their operational priorities.

Understanding Authorize.Net

Founded in 1996, Authorize.Net is a pioneer in online payment processing. Its long-standing reputation makes it a favorite among traditional brick-and-mortar businesses looking to expand their online presence.

Key traits of Authorize.Net:

• Reliability: Decades of experience have made it one of the most trusted gateways in the U.S.
• Merchant-Focused: Often paired with traditional merchant accounts, making it suitable for businesses that want to keep banking relationships separate from their payment processor.
• Omnichannel Support: Works well for both in-person and online transactions, making it ideal for retailers with physical stores and e-commerce sites.
• Legacy-Friendly: Compatible with older point-of-sale (POS) systems, which makes transitions smoother for established businesses.

Understanding Stripe

Launched in 2010, Stripe revolutionized the payment gateway industry with its API-first approach. It quickly became a go-to option for tech-savvy startups, SaaS companies, and ecommerce platforms seeking flexibility and scalability.

Key traits of Stripe:

• Developer-Friendly: Known for its robust APIs that allow deep customization of payment flows.
• Digital-First: Designed with modern ecommerce, marketplaces, and subscription services in mind.
• Global Expansion: It is the ideal solution for global enterprises, as it supports over 135 currencies and operates in more than 40 countries.
• Innovative Ecosystem: Offers additional services like Stripe Connect for marketplaces and Stripe Radar for fraud prevention.

Key Differences at a Glance

Aspect	Authorize.Net	Stripe
Founded	1996	2010
Best For	Traditional/brick-and-mortar businesses	Digital-first startups and SaaS
Merchant Account	Usually required	Not required (included in service)
International Reach	Primarily U.S. & Canada	40+ countries, 135+ currencies
Developer Tools	Limited	Extensive API and developer resources

Key Takeaway:

Choose Authorize.Net if you’re a traditional business with in-store operations and prefer having a separate merchant account. Opt for Stripe if you’re a digital-first company seeking scalability, global reach, and advanced customization:

Pricing and Transaction Fees: Breaking Down the Real Costs

Your bottom line can be greatly impacted by pricing, particularly for small organizations or those with large transaction volumes. Understanding the full cost structure—including monthly fees, transaction rates, and any hidden charges—will help you accurately project expenses.

Authorize.Net Pricing Breakdown

• Setup Fee: $25 (may be waived if purchased through certain resellers)
• Monthly Gateway Fee: $25 for maintaining the account and processing access
• Per-Transaction Fee: 2.9% + $0.30 (standard online transaction rate)
• Chargeback Fee: $25 per disputed transaction
• International Fees: Vary based on the processor chosen alongside Authorize.Net

This structure benefits medium- to large-sized businesses that require a dedicated merchant account and can justify the monthly fees due to high sales volumes.

Stripe Pricing Breakdown

• Setup Fee: None
• Monthly Gateway Fee: None
• Per-Transaction Fee: 2.9% + $0.30 for domestic cards
• Chargeback Fee: $15 per dispute
• International Transactions: An Additional 1% for currency conversion and international cards

Stripe’s pay-as-you-go model makes it attractive for startups and businesses just starting, as they only pay per transaction without any ongoing monthly charges.

Pricing Comparison Table

Feature	Authorize.Net	Stripe
Setup Fee	$25 (waivable)	None
Monthly Gateway Fee	$25	None
Per-Transaction Fee	2.9% + $0.30	2.9% + $0.30
Chargeback Fee	$25	$15
International Transaction Fees	Varies by processor	+1% for currency conversion

Additional Considerations

• Negotiation: Larger businesses can often negotiate lower rates with either provider.
• Hidden Costs: Be aware of refund fees, early termination fees (which some resellers charge for Authorize.Net), or cross-border surcharges.
• High-Volume Discounts: Stripe offers tiered pricing for enterprises processing large amounts monthly.

Key Takeaway:

Choose Stripe for a simple, no-monthly-fee structure, especially if you’re a startup or small business. Opt for Authorize.Net if you already have a merchant account and can absorb the monthly gateway fee for added control over your transactions:

Features and Integrations: Beyond Basic Payment Processing

Modern businesses need more than just payment acceptance—they require robust tools for billing, fraud detection, analytics, and seamless integrations with e-commerce platforms. Both Authorize.Net and Stripe go beyond basic processing, excelling in different areas.

Authorize.Net Features

• Recurring Billing: Ideal for subscription-based services.
• Fraud Detection Suite: Helps minimize chargebacks with customizable filters.
• Virtual Terminal: Enables businesses to process payments, making it perfect for manually entering phone orders.
• POS Integration: Works with many legacy point-of-sale systems for omnichannel operations.
• Customer Information Manager (CIM): Securely stores customer payment data for future transactions.

Stripe Features

• Stripe Radar: AI-powered fraud detection and prevention.
• Stripe Connect: Designed for platforms and marketplaces to manage multi-party payments.
• Checkout Customization: APIs for building branded, seamless checkout experiences.
• Wide Integrations: Works with Shopify, WooCommerce, Squarespace, BigCommerce, and more.
• Multiple Payment Methods: Accepts credit cards, ACH, Apple Pay, Google Pay, and buy-now-pay-later services like Klarna.
• Global Currency Support: Supports over 135 currencies.

Feature Comparison Table

Feature	Authorize.Net	Stripe
Subscription Billing	Yes	Yes
Fraud Detection	Advanced suite	Stripe Radar (AI-powered)
Global Currencies	Limited	135+ currencies
Developer Customization	Basic APIs	Extensive APIs and SDKs
Marketplace Support	Limited	Full support with Stripe Connect

Key Takeaway:

Pick Authorize.Net for basic recurring billing, strong fraud protection, and POS compatibility. Choose Stripe for advanced customization, global payment methods, and extensive third-party integrations:

Ease of Use, Developer Experience, and Customer Support

A payment gateway should be intuitive for business owners and flexible enough for developers to customize. The user experience and support you receive can directly impact your efficiency and customer satisfaction.

Stripe Usability

• Modern Dashboard: Clean, intuitive interface that’s easy to navigate.
• Developer Documentation: Highly praised for clarity and depth, reducing integration time.
• Customizable Checkout: Enables businesses to tailor payment experiences to match their brand identity.

Authorize.Net Usability

• Reliable but Dated Interface: Designed for straightforward use but less visually modern than Stripe.
• Standard Features for Non-Technical Users: Ideal for businesses that don’t require complex customizations.
• Learning Curve for Developers: May require more effort to integrate advanced custom features.

Customer Support Comparison

• Authorize.Net: Offers 24/7 phone support, which appeals to businesses that prefer direct, human interaction.
• Stripe: Provides email, live chat, and an extensive knowledge base, making it accessible for digital-first users.

Usability Highlights Table

Aspect	Authorize.Net	Stripe
Dashboard Design	Functional but dated	Modern, clean, and intuitive
Developer Experience	Moderate integration effort	Excellent API-first experience
Customer Support	24/7 phone support available	Live chat, email, and detailed guides

Key Takeaway:

If you prioritize developer-friendly tools and a sleek dashboard, go for Stripe. If you need reliable phone support and a simple setup for standard use cases, Authorize.Net is a dependable choice:

Security, Compliance, and Global Reach

Security and compliance are non-negotiable for payment gateways. Additionally, businesses planning to expand internationally require a gateway that supports global payment standards and multiple currencies.

Security Standards

Both Authorize.Net and Stripe are PCI DSS Level 1 compliant, ensuring top-tier security for handling sensitive cardholder data.

Authorize.Net Security:

• Tokenization to protect stored customer information.
• Fraud detection suite with customizable filters.
• Primarily focused on U.S. and Canadian compliance needs.

Stripe Security:

• End-to-end encryption and secure APIs.
• Stripe Radar uses machine learning to detect suspicious activity.
• Covers compliance standards across 40+ countries.

Global Reach

• Authorize.Net: Primarily serves businesses in the U.S. and Canada with limited international features.
• Stripe: Supports merchants in 40+ countries and accepts payments in 135+ currencies.

Security and Reach Comparison

Aspect	Authorize.Net	Stripe
PCI Compliance	Level 1	Level 1
Fraud Protection	Built-in customizable tools	AI-powered Stripe Radar
Tokenization	Yes	Yes
International Reach	Limited to U.S. & Canada	40+ countries, 135+ currencies

Key Takeaway:

Choose Stripe for international scalability and advanced AI-driven fraud prevention. Stick with Authorize.Net if your operations are mostly U.S.-based and you want reliable domestic security tools:

Conclusion

Both Authorize.Net and Stripe are secure and reliable payment gateways, but your choice depends on your business model:

• Choose Authorize.Net if you run a traditional or hybrid brick-and-mortar business.
• Choose Stripe if you want a scalable, developer-friendly solution with strong global capabilities.

Pick the gateway that aligns with your business type, growth plans, and technical needs to maximize efficiency and minimize costs.

FAQs

Can I use both Authorize.Net and Stripe together?

Yes, some businesses integrate both to offer flexibility, but it may increase costs and require more setup.

Which platform is better for international payments?

Stripe supports over 135 currencies and is generally better suited for businesses targeting global markets.

Does Authorize.Net require a merchant account?

Yes, Authorize.Net typically requires a merchant account, whereas Stripe provides it as part of its service.

Which is easier for developers to integrate?

Stripe is widely recognized as more developer-friendly thanks to its API-first approach and modern documentation.

Do both platforms offer fraud protection?

Yes, both include fraud detection tools, though Stripe’s Radar is praised for its advanced machine learning features.

Additional Resources