Authorize.net vs. Stripe

Which Payment Gateway is Right for You?

Choosing the right payment gateway is crucial for your online business operations and it's one of the most often asked questions. Two major contenders, Authorize.net and Stripe, offer powerful tools, but cater to different needs. Below, we break down the pros and cons of each platform to help you decide which best fits your business model.

Authorize.net: The Trusted Legacy Provider

Overview

Owned by Visa, Authorize.net has been a payment gateway industry leader since 1996. It’s known for its stability, fraud protection tools, and flexibility with multiple merchant accounts.

Pros:

  • Trusted by Enterprises: Established reputation and widely accepted in traditional retail, healthcare, and professional service industries.
  • Merchant Account Support: Can be paired with your existing merchant account or bundled with one.
  • Advanced Fraud Detection: Includes customizable filters and the Advanced Fraud Detection Suite (AFDS).
  • Recurring Billing: Robust tools for managing subscriptions and invoicing.
  • 24/7 Support: Reliable phone-based support included.
     

Cons:

  • Dated Interface: User experience and dashboard are less modern compared to Stripe.
  • More Setup Required: May require manual configuration or developer help.
  • Monthly Fees: $25/month gateway fee plus per-transaction costs.
  • Limited Global Support: Primarily U.S., Canada, UK, Europe, and Australia.

Stripe: The Developer's Favorite

Overview

Stripe is known for its modern API, global reach, and seamless integration for online-first businesses and startups. It powers millions of e-commerce sites and SaaS platforms.

Pros:

  • All-in-One Solution: Acts as both a payment gateway and merchant account.
  • Developer-Friendly: Clean APIs and extensive documentation make it ideal for custom-built platforms.
  • Global Payments: Accepts 135+ currencies and supports international expansion.
  • No Monthly Fee: Pay-as-you-go pricing with no setup or monthly costs.
  • Modern Dashboard: Clean, intuitive user interface with real-time analytics.
     

Cons:

  • Limited Phone Support: Primarily email and chat-based, with phone support behind account verification.
  • Can Be Too Complex: API-first model may overwhelm non-technical users.
  • Account Stability Risks: Stripe can freeze funds or deactivate accounts if flagged for risk.
  • Less Control Over Merchant Account: Stripe handles underwriting internally—less customizable than Authorize.net paired with your own merchant account.

Quick Comparison

FeatureAuthorize.netStripe
Monthly Fee$25$0
Transaction Fee2.9% + $0.30 (All-in-One Plan)2.9% + $0.30
Merchant AccountYes (optional)Included
Recurring BillingYesYes
Global PaymentsLimitedExtensive (+135 currencies)
Developer ToolsBasicAdvanced
Fraud ProtectionAFDS includedMachine learning-based
Customer Support24/7 PhoneEmail/Chat, limited phone

PCI Compliance: Which Platform Makes It Easier?

PCI DSS (Payment Card Industry Data Security Standard) compliance is mandatory for any business that handles credit card information. Both Stripe and Authorize.net help with compliance—but how they handle it differs.

Authorize.net: You’re More Involved

  • Merchant Responsibility: If you use Authorize.net with your own merchant account, you’re responsible for your own PCI compliance. This includes completing SAQ forms and ensuring secure handling of cardholder data.
  • Requires More Oversight: Businesses may need to implement additional safeguards, especially if storing card data or integrating with POS systems.
  • More Paperwork: Compliance requirements can be more manual and burdensome, especially for non-technical teams.
     

Stripe: PCI Compliance Made Easier

  • Stripe Handles Most of It: Stripe is a PCI Level 1 Service Provider and provides pre-built checkout options (like Stripe Checkout or Elements) that dramatically reduce your compliance scope.
  • Minimal Effort for You: If you use their secure forms and don’t store card info, your requirements drop to a simplified SAQ A form.
  • Fewer Headaches: Stripe’s infrastructure is built to take PCI concerns off your plate.
     

Bottom Line:

  • Stripe is the easier choice for PCI compliance, especially for small to mid-size businesses or startups.
  • Authorize.net may require more active compliance management, especially if you're using a custom setup or handling sensitive data directly.

Which One Should You Choose?

Choose Authorize.net if you’re a traditional business needing stability, want to use your own merchant account, or prioritize fraud protection and phone support.
Choose Stripe if you’re building a modern, online-first business that values flexibility, global reach, and powerful developer tools.

Need Help Deciding?

If you're unsure which fits your needs best, our team can help you assess your business model and integration requirements. Contact us to schedule a consultation.