Authorize.net vs Stripe: Which Payment Gateway Should You Choose?

Authorize.net and Stripe are two of the most widely used payment gateways in North America — but they were built in different eras, for different customers, with fundamentally different philosophies.

Authorize.net has been processing payments since 1996. Now owned by Visa, it’s a traditional gateway that connects to a separate merchant account. It’s the default choice for many established businesses, especially those using accounting software like QuickBooks or working with a bank that provides a merchant account.

Stripe launched in 2010 as an API-first platform that bundles gateway, processing, and merchant account into one service. It’s become the default for developers, startups, and software platforms that want to embed payments.

Choosing between them comes down to your technical capabilities, business model, and whether you need a standalone gateway or a full-stack payment platform.

Side-by-Side Comparison

Feature	Authorize.net	Stripe
Founded	1996 (owned by Visa)	2010
What it is	Payment gateway (connects to separate merchant account)	Full-stack PSP (gateway + processing + merchant account)
Standard pricing	$25/month + 2.9% + 30¢ per transaction	No monthly fee, 2.9% + 30¢ per transaction
Merchant account required?	Yes (separate contract with an acquiring bank)	No (bundled)
API quality	Functional, older-style XML/JSON APIs	Excellent — industry benchmark for developer experience
SDKs & libraries	Limited	Extensive (Node.js, Python, Ruby, PHP, Go, Java, .NET, iOS, Android)
Hosted checkout	Yes (Accept Hosted, Accept.js)	Yes (Stripe Checkout, Payment Element)
Recurring billing	Automated Recurring Billing (ARB)	Stripe Billing (subscriptions, invoicing, metered billing)
Payment methods	Cards, ACH/eCheck	Cards, ACH, SEPA, iDEAL, BACS, Apple Pay, Google Pay, Klarna, Afterpay, 40+ local methods
International support	US and Canada only	47+ countries, 135+ currencies
Fraud protection	Advanced Fraud Detection Suite (AFDS)	Stripe Radar (ML-based, customisable rules)
Card vaulting / tokenisation	Customer Information Manager (CIM)	Built-in vault with network tokenisation
PCI compliance	PCI DSS validated	PCI DSS Level 1
Platform / marketplace tools	None	Stripe Connect
In-person payments	Limited (via third-party terminals)	Stripe Terminal (own hardware)
Reporting	Basic transaction reports	Advanced analytics, Sigma (SQL), Data Pipeline

Where Authorize.net Wins

Existing merchant account relationships

If your business already has a merchant account with favourable rates from an acquiring bank, Authorize.net lets you keep those rates. Stripe bundles its own processing, which means you’re locked into Stripe’s pricing. For high-volume merchants who have spent years negotiating interchange-plus rates with their acquirer, this is a genuine advantage.

Lower effective cost at high volume

Authorize.net’s $25/month fee is offset by the fact that your processing costs are determined by your merchant account agreement, not by Authorize.net. At high transaction volumes, a well-negotiated merchant account plus Authorize.net’s gateway fee can be meaningfully cheaper than Stripe’s flat 2.9% + 30¢.

QuickBooks and legacy integrations

Authorize.net has deep integrations with QuickBooks, Sage, Xero, and other accounting/ERP systems. For businesses that rely on these integrations, Authorize.net slots in without disruption. Switching to Stripe would mean rebuilding those connections.

Simplicity for non-technical teams

Authorize.net’s Virtual Terminal and merchant dashboard are designed for business operations teams, not developers. If your team needs to process phone orders, manage recurring billing, or handle refunds without touching code, Authorize.net’s interface is more accessible than Stripe’s developer-centric approach.

Established trust with traditional businesses

Authorize.net has processed payments for nearly 30 years. Many traditional businesses — retail, professional services, healthcare — trust it because they’ve used it for a decade or more. Switching costs are real, and “it works” is a valid reason to stay.

Where Stripe Wins

Developer experience

This is Stripe’s defining advantage. The API documentation, SDKs, test mode, webhooks, and developer tools are the industry benchmark. If you’re building a custom checkout, embedding payments in a SaaS product, or integrating payments into a mobile app, Stripe gets you to production faster than any alternative.

Global payment method coverage

Authorize.net supports cards and ACH in the US and Canada. Stripe supports 40+ payment methods across 47+ countries — including SEPA Direct Debit, iDEAL, Bancontact, BACS, Klarna, Afterpay, Apple Pay, and Google Pay. If you sell internationally or serve customers who prefer non-card payment methods, Stripe is the clear choice.

All-in-one platform

Stripe bundles gateway, processing, merchant account, billing, invoicing, fraud detection, issuing, and financial reporting into one platform. No separate merchant account application, no additional contracts, no integration between disparate systems. For businesses that want to move fast and minimise vendor management, this simplicity is valuable.

Platform and marketplace tools

Stripe Connect lets platforms onboard sub-merchants, split payments, and manage payouts — which is why it’s the default for many SaaS companies and marketplaces. Authorize.net has no equivalent. If you’re building a platform that processes payments on behalf of other businesses, Stripe is purpose-built for this.

Fraud detection

Stripe Radar uses machine learning trained on billions of data points across the Stripe network to score transactions in real time. It’s more sophisticated than Authorize.net’s rule-based AFDS, particularly for card-not-present e-commerce transactions.

Modern checkout experience

Stripe’s Payment Element and Checkout automatically adapt to the customer’s location, device, and preferred payment method. The UX is polished and conversion-optimised. Authorize.net’s hosted checkout works but feels dated by comparison.

The Real Decision Framework

The Authorize.net vs Stripe question often comes down to three factors:

1. Are you a developer or a business operations team?

If you have engineers who will integrate and maintain the payment system, Stripe’s API-first approach is almost always preferred. If payments are managed by a finance or operations team using dashboards and built-in tools, Authorize.net may be more practical.

2. Do you sell internationally?

If your customers are exclusively in the US and Canada, Authorize.net works fine. The moment you need to accept SEPA payments in Europe, support Pix in Brazil, or offer local methods in Asia, Stripe is the only option of the two.

3. Do you already have a merchant account?

If you have an existing merchant account with negotiated rates that beat Stripe’s 2.9% + 30¢, Authorize.net lets you keep those economics. If you’re starting fresh or processing low-to-moderate volume, Stripe’s bundled approach is simpler and often comparable in total cost.

When to Choose Authorize.net

You have an existing merchant account with competitive processing rates
Your business operates exclusively in the US or Canada
You need QuickBooks integration without rebuilding workflows
Your team prefers dashboard-based management over API integration
You process phone orders via Virtual Terminal regularly
You’re in a vertical (healthcare, professional services) where Authorize.net is already the standard

When to Choose Stripe

You’re building a custom checkout or embedding payments in a software product
You sell internationally or need non-card payment methods
You want a platform/marketplace solution (Stripe Connect)
Developer experience and time-to-production matter
You need advanced fraud detection and analytics
You don’t want to manage a separate merchant account

When You Don’t Need to Choose

For platforms and software companies that serve merchants with diverse payment needs, the “Authorize.net vs Stripe” question becomes moot. Some merchants prefer Authorize.net because of existing integrations. Others want Stripe for its modern checkout. Enterprise clients may mandate Adyen or Worldpay.

A PSP-neutral payment layer connects to both Authorize.net and Stripe — and 40+ other gateways — through a single integration. Merchants keep their preferred PSP, the platform earns revenue share across all transactions, and nobody has to compromise on their gateway choice.

This is particularly relevant for platforms that have outgrown single-PSP solutions like Stripe Connect and need to support enterprise PSP mandates.

Frequently Asked Questions

Is Authorize.net cheaper than Stripe?

It depends on volume. Authorize.net charges $25/month plus your merchant account’s processing rates, which can be lower than Stripe’s 2.9% + 30¢ at high volume. For low-volume businesses, Stripe’s no-monthly-fee structure is often cheaper overall. Calculate the total cost for your specific transaction profile.

Can I switch from Authorize.net to Stripe?

Yes, but you’ll need to migrate stored card tokens (which requires coordination between both providers), update your checkout integration, and potentially rebuild accounting integrations. Most migrations take 2-4 weeks of development time.

Does Authorize.net work with Shopify?

Authorize.net can work with Shopify via third-party integrations, but Shopify’s native checkout uses Shopify Payments (powered by Stripe). For most Shopify merchants, using the native payment processing is simpler and cheaper than adding Authorize.net.

Is Authorize.net secure?

Yes. Authorize.net is PCI DSS validated, supports tokenisation via Customer Information Manager (CIM), and offers an Advanced Fraud Detection Suite. It’s been processing payments securely since 1996. However, because it requires a separate merchant account, your total security posture depends on both Authorize.net and your acquiring bank’s practices.

Can I use both Authorize.net and Stripe?

Yes. Some businesses use Authorize.net for phone orders and legacy integrations while using Stripe for their web checkout. Platforms that serve merchants using both can connect to each via a PSP-neutral payment layer rather than maintaining separate integrations.

Need a payment gateway? Shuttle connects to Authorize.net, Stripe, and 40+ other payment providers. Whether you’re a merchant looking for payment links and checkout or a platform that needs to embed multi-PSP payments, we can help.

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