Authorize.Net vs Stripe: Best Choice for Your Online Shop (2024)

In the fast-paced world of ecommerce, selecting the right payment gateway is crucial for ensuring smooth transactions and customer satisfaction.

Authorize.net, established in 1996, is one of the oldest and most trusted payment gateways, renowned for its robust security features and reliability. Stripe, founded in 2010 by the Collison brothers, has quickly become a favorite among developers for its seamless integration and advanced technology.

For ecommerce businesses, understanding how Authorize.net and Stripe compare in terms of features, pricing, support, and integration capabilities is essential. This article provides an in-depth analysis to help you make an informed decision that aligns with your business needs.

Overview of Stripe vs Authorize.net

These are the main features of Authorize.net and Stripe set up in a table, to get an overview of the comparison.

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In-Depth Feature Analysis

Here is direct head-to-head analysis of the Authorize.net vs Stripe debate:

Transaction and Monthly Fees

Authorize.net and Stripe both charge a standard transaction fee of 2.9% + $0.30 per transaction. However, their fee structures differ significantly when it comes to monthly charges and potential additional costs.

Authorize.net imposes a $25 monthly gateway fee for its services. This fee provides access to their payment gateway, virtual terminal, and basic fraud detection tools. If you require a merchant account, Authorize.net offers an all-in-one option, combining both gateway services and a merchant account at the same transaction rate.

Stripe, on the other hand, has no monthly fees or setup costs. You pay only when you make a sale, which can be advantageous for startups or businesses with fluctuating sales volumes. Stripe's pricing model is straightforward, with transparent fees and no hidden charges.

Analysis:

• Authorize.net may be more cost-effective for businesses with high transaction volumes, where the monthly fee becomes negligible compared to overall sales.
• Stripe is generally more suitable for small to medium-sized businesses or startups that prefer to avoid fixed monthly costs, especially if sales volumes are low or unpredictable.

Considerations:

• Evaluate your average monthly sales to determine if Authorize.net's monthly fee is justifiable.
• Consider the predictability of your sales volumes when choosing between a platform with monthly fees versus one without.

Payment Methods and International Support

Accepting a variety of payment methods enhances customer convenience and can increase sales conversions. International support is crucial for businesses targeting a global market.

Authorize.net supports major credit cards (Visa, MasterCard, American Express, Discover), signature debit cards, e-checks (ACH), Apple Pay, and PayPal. However, its international support is limited to merchants based in the United States, Canada, United Kingdom, Europe, and Australia. Transactions in multiple currencies are possible, but merchants must have a bank account in one of the supported countries.

Stripe offers a broader range of payment methods, including all major credit and debit cards, ACH transfers, Apple Pay, Google Pay, and international options like Alipay and WeChat Pay. Stripe operates in over 40 countries and supports transactions in 135+ currencies, making it highly suitable for global ecommerce operations.

Analysis:

• Authorize.net is ideal for businesses operating primarily within its supported regions and catering to customers using traditional payment methods.
• Stripe is better suited for businesses aiming for an international audience, offering extensive currency support and alternative payment methods popular in different regions.

Considerations:

• If global expansion is part of your business strategy, Stripe's extensive international capabilities provide a significant advantage.
• For businesses serving a local market, Authorize.net's payment options may suffice.

Developer Friendliness and Integration

The ease of integrating a payment gateway into your ecommerce platform can significantly affect development time and costs.

Authorize.net provides APIs and SDKs for various programming languages, including Java, .NET, PHP, and Ruby. While it offers flexibility, developers often find its documentation less comprehensive compared to Stripe's. Integration may require more effort, and professional assistance might be necessary to fully utilize its capabilities.

Stripe is renowned for its developer-centric approach. It offers well-documented APIs, libraries, and SDKs in multiple programming languages such as Java, JavaScript, PHP, Python, Ruby, and .NET. Stripe's documentation is thorough, with clear examples and a user-friendly interface. Additionally, Stripe provides a robust testing environment, allowing developers to simulate transactions and handle edge cases effectively.

Analysis:

• Authorize.net may present integration challenges for businesses without dedicated development teams or technical expertise.
• Stripe simplifies the integration process, making it accessible even to developers with limited experience.

Considerations:

• Assess your in-house technical capabilities before choosing a gateway. If you lack development resources, Stripe's ease of integration can save time and reduce costs.
• For complex, customized payment solutions, Stripe's flexible APIs offer greater possibilities.

Recurring Billing and Subscription Management

Efficiently managing recurring payments is vital for businesses with subscription models or membership services.

Authorize.net offers an Automated Recurring Billing (ARB) feature. ARB allows merchants to set up subscriptions and recurring transactions with customizable billing intervals, trial periods, and variable pricing. However, configuring ARB can be complex and may require additional development work to integrate fully with your ecommerce platform.

Stripe provides Stripe Billing, a suite of tools designed for subscription management. It supports features like tiered pricing, usage-based billing, free trials, discounts, and the ability to handle failed payments with automatic retries. Stripe Billing also includes customer communication tools, enabling personalized invoicing and receipt emails.

Analysis:

• Authorize.net's ARB is powerful but may lack the user-friendly interface that Stripe offers, potentially requiring more technical expertise to manage.
• Stripe Billing is intuitive and integrates seamlessly with other Stripe services, offering a more streamlined experience for both merchants and customers.

Considerations:

• If your business model relies heavily on subscriptions, Stripe's advanced features and ease of use can enhance customer satisfaction and retention.
• For businesses requiring highly customized recurring billing setups, Authorize.net's ARB provides the necessary flexibility, albeit with a steeper learning curve.

Fraud Protection

Protecting your business from fraudulent transactions is essential to minimize chargebacks and financial losses.

Authorize.net employs an Advanced Fraud Detection Suite (AFDS), which includes 13 configurable fraud filters. Merchants can set rules based on transaction velocity, IP address blocking, shipping and billing mismatches, and more. AFDS allows for a high degree of customization, enabling businesses to tailor fraud prevention measures to their specific needs.

Stripe utilizes Stripe Radar, a machine learning-based fraud detection system. Radar analyzes hundreds of signals in real-time, leveraging data across millions of businesses to identify and block fraudulent transactions. It adapts to new fraud patterns automatically and provides a dashboard for monitoring and adjusting risk settings.

Analysis:

• Authorize.net offers granular control over fraud settings, which can be beneficial for businesses that require specific rules.
• Stripe's automated, intelligent system reduces the need for manual configuration and stays updated against evolving fraud tactics.

Considerations:

• If you prefer hands-on management of fraud prevention, Authorize.net's AFDS allows detailed customization.
• For businesses looking for a set-it-and-forget-it solution, Stripe Radar offers effective protection with minimal intervention.

Pro Tip: There are other quality alternatives to Stripe and Authorize.net, make sure you know them all.

Customer Support

Reliable customer support can be critical, especially when dealing with payment processing issues that can impact revenue.

Authorize.net provides 24/7 customer support via phone and email. This round-the-clock availability ensures that merchants can receive assistance at any time, which is particularly important for businesses operating outside regular business hours or with international clients.

Stripe offers support primarily through email and live chat. Phone support is available but typically reserved for users on premium plans or with higher transaction volumes. Stripe's online resources include extensive documentation, guides, and a community forum.

Analysis:

• Authorize.net's 24/7 phone support is advantageous for immediate, personalized assistance.
• Stripe's support is efficient but may rely more on self-service resources and digital communication channels.

Considerations:

• If immediate phone support is crucial for your operations, Authorize.net provides that assurance.
• If you are comfortable with digital support and have access to technical expertise, Stripe's support model may suffice.

Integration Ease and Third-Party Compatibility

Ensuring that your payment gateway integrates smoothly with your ecommerce platform and other business tools is vital for operational efficiency.

Authorize.net integrates with numerous ecommerce platforms, including Magento, WooCommerce, Shopify, and PrestaShop. However, integration may require additional plugins or extensions, and in some cases, customization by a developer to achieve optimal functionality.

Stripe offers seamless integrations with a wide range of platforms and services. It provides pre-built integrations with ecommerce platforms like Shopify, WooCommerce, BigCommerce, and Squarespace. Stripe also supports integration with accounting software like QuickBooks and Xero, as well as CRM tools and subscription management platforms.

Analysis:

• Authorize.net may require more effort to integrate fully, potentially increasing development time and costs.
• Stripe's extensive compatibility and ready-to-use integrations simplify the process, reducing the need for technical intervention.

Considerations:

• Evaluate the platforms and tools you currently use to determine which gateway offers the most straightforward integration path.
• Consider future scalability and whether the gateway can accommodate new tools as your business grows.

Customizable Checkout Experience

Providing a smooth and branded checkout experience can enhance customer trust and reduce cart abandonment rates.

Authorize.net offers a hosted payment form called SIM (Server Integration Method), which allows merchants to redirect customers to a secure page for payment processing. While this reduces the PCI compliance burden, customization options are limited, potentially leading to a disjointed user experience.

Alternatively, Authorize.net's API integration (AIM - Advanced Integration Method) enables merchants to create a fully customized checkout experience on their own website. However, this method increases the scope of PCI compliance responsibilities and requires more development resources.

Stripe provides Stripe Checkout, a pre-built, customizable payment page that can be embedded into your website with minimal coding. It supports localization, multiple payment methods, and is optimized for conversion across devices. For even more control, Stripe Elements allows developers to build custom payment forms using pre-built UI components, ensuring compliance while maintaining design flexibility.

Analysis:

• Authorize.net's hosted forms offer simplicity but at the expense of branding and user experience.
• Stripe balances ease of integration with customization, enabling a seamless and branded checkout process.

Considerations:

• If a highly customized checkout experience is important for your brand, Stripe offers more flexible solutions.
• Assess your willingness to manage PCI compliance when considering deeper customization with Authorize.net.

Reporting and Analytics

Access to detailed transaction data and analytics helps businesses make informed decisions and identify trends.

Authorize.net provides a merchant interface with standard reporting features, including transaction summaries, unsettled transactions, and batch reports. While functional, the reporting tools may lack advanced analytics and visualization capabilities.

Stripe offers a robust dashboard with real-time reporting, analytics, and insights. Merchants can access detailed information on revenue, customer behavior, recurring revenue metrics, and dispute activity. The dashboard also allows for custom reports and data exports.

Analysis:

• Authorize.net's reporting is suitable for basic transaction tracking but may require additional tools for in-depth analysis.
• Stripe's comprehensive analytics empower businesses to make data-driven decisions and monitor key performance indicators effectively.

Considerations:

• Determine the level of reporting detail you need. For advanced analytics, Stripe provides more out-of-the-box capabilities.
• Consider integrating third-party analytics tools if using Authorize.net to enhance reporting functions.

PCI Compliance and Security Standards

Compliance with Payment Card Industry (PCI) standards is mandatory for businesses handling credit card information.

Authorize.net assists merchants in achieving PCI compliance by offering secure hosted payment solutions and tools to minimize the handling of sensitive data. However, depending on the integration method, merchants may still need to complete PCI Self-Assessment Questionnaires and ensure their systems meet compliance requirements.

Stripe is a PCI DSS Level 1 certified service provider, the highest level of certification available. Stripe's solutions are designed to minimize PCI compliance burdens on merchants. By using Stripe Elements or Stripe Checkout, sensitive card data is transmitted directly to Stripe without touching your servers, simplifying compliance efforts.

Analysis:

• Authorize.net provides support but may require more merchant involvement in compliance efforts.
• Stripe's solutions reduce the scope of compliance responsibilities, easing the burden on merchants.

Considerations:

• Evaluate your capacity to manage PCI compliance and whether reducing this workload is a priority.
• Consider the integration methods and how they impact your compliance obligations.

Pricing Models

Authorize.net and Stripe both offer appealing transaction fees. However, Authorize.net's monthly fee versus Stripe's lack of one can greatly affect affordability for businesses.

Authorize.net Pricing

Authorize.net's pricing structure is straightforward, yet it comes with a few considerations. The transaction fees are set at 2.9% + $0.30 per transaction, a standard rate in the industry. However, what sets Authorize.net apart is its $25 monthly gateway fee, which can be a significant factor for businesses to consider. Fortunately, there are no setup fees, making it easier for businesses to get started without upfront costs.

• Additional Costs: Businesses should be aware that there might be extra fees for advanced features or merchant account services, which could add to the overall cost.

Stripe Pricing

Stripe, on the other hand, offers a more flexible pricing model that appeals to a wide range of businesses. Like Authorize.net, Stripe charges 2.9% + $0.30 per transaction, but it stands out by not imposing any monthly fees. This makes Stripe particularly attractive for startups and small businesses that need to keep fixed costs low.

• Additional Costs: While there are no setup fees, businesses should note that additional services, such as Stripe Billing, can incur extra charges ranging from 0.5% to 0.8% per transaction for recurring payments.

Cost-Effectiveness

For businesses with low sales volumes, Authorize.net might prove to be more expensive due to its monthly fee. This could be a deterrent for smaller operations or those just starting out.

Stripe, with its absence of monthly fees, is more economical for businesses with variable sales volumes. It allows for greater flexibility and scalability, making it a popular choice for businesses that experience fluctuations in their transaction volumes.

In summary, while both Authorize.net and Stripe offer competitive transaction fees, the presence or absence of monthly fees can significantly impact the overall cost-effectiveness for different types of businesses.

If Authorize.net is the one for you, make sure to check out these other 10 Authorize.net alternatives.

Must-Have Features Comparison

Here is a checklist of the most important features and in what way Authorize.net and Stripe support this:

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Additional Considerations

Stripe's infrastructure is designed with scalability in mind, ensuring that as your business grows, it can handle increased transaction volumes seamlessly.

This makes it an excellent choice for businesses anticipating rapid growth or fluctuating sales. Additionally, Stripe is known for its commitment to innovation, frequently releasing new features and services to enhance the user experience.

One such example is Stripe Atlas, a service that simplifies company formation, making it easier for entrepreneurs to establish their businesses. This focus on innovation ensures that Stripe remains at the forefront of payment processing technology, continually adapting to meet the evolving needs of its users.

Pick the Right Tool for Your Online Shop

Choosing between Authorize.net and Stripe depends on your ecommerce business's specific requirements.

Choose Authorize.net if:

• You prefer a trusted, long-standing payment gateway with robust security features.
• Your business operates primarily in the U.S., Canada, Australia, or the U.K.
• 24/7 phone support is essential for your operations.

Choose Stripe if:

• You need a highly developer-friendly platform with easy integration.
• Your business targets an international market with multi-currency support.
• Flexible, customizable checkout experiences are important to your customer engagement strategy.

By assessing these factors in line with your business goals, you can select the payment gateway that best suits your ecommerce operations.

Frequently Asked Questions

Here we have answered some of the most asked questions in the Authorize.net vs Stripe debate.

How easy is it to integrate Authorize.net and Stripe with my ecommerce platform?

Both gateways integrate with major ecommerce platforms like Shopify, WooCommerce, and Magento. However, Stripe is often praised for its ease of integration due to comprehensive APIs and developer-friendly documentation.

Do Authorize.net and Stripe support mobile payments?

Yes, both support mobile payments. Authorize.net provides SDKs for mobile integration, while Stripe offers robust mobile SDKs for iOS and Android, facilitating payments within mobile apps.

Which gateway offers better fraud protection?

Authorize.net offers an Advanced Fraud Detection Suite with customizable rules, providing detailed control over fraud prevention. Stripe uses machine learning algorithms with Stripe Radar to detect and prevent fraudulent transactions automatically.

Can I accept international payments with Authorize.net and Stripe?

Stripe supports over 135 currencies and is available in numerous countries, making it ideal for international businesses. Authorize.net has limited international support, primarily serving the U.S., Canada, Australia, and the U.K.

What customer support options are available for each gateway?

Authorize.net provides 24/7 phone and email support for immediate assistance. Stripe offers email and chat support, with phone support available for premium users.

Are there any hidden fees with Authorize.net or Stripe?

Authorize.net charges a $25 monthly gateway fee in addition to transaction fees. Stripe does not have monthly fees but may charge for additional services like recurring billing.

Do both gateways support recurring billing and subscriptions?

Yes, both offer tools for managing recurring payments. Authorize.net provides advanced subscription management features, while Stripe offers built-in recurring billing with options for customization.

Which platform is more suitable for startups?

Stripe is often preferred by startups due to its lack of monthly fees, ease of integration, and developer-friendly environment. Authorize.net might be more suitable for established businesses that can absorb the monthly fees.