AuthorizeNet vs Stripe
Why people compare these: Both process cards reliably but represent different eras: legacy gateway (1996) vs modern API-first platform (2011)
The real trade-off: Proven 28-year stability with US support vs modern developer experience and feature innovation
Common mistake: Choosing Authorize.Net for stability while ignoring $25/month + $0.10/transaction costs at low volume
At-a-glance comparison
AuthorizeNet ↗
Authorize.Net is an established payment gateway (since 1996) offering reliable card processing with monthly fees and per-transaction pricing. Known for stability and extensive integration ecosystem…
- ✓ Proven 28-year track record with 430,000+ merchants - reliability established
- ✓ Extensive plugin ecosystem for e-commerce platforms (Magento, WooCommerce, Shopify)
- ✓ Predictable monthly fee structure ($25 gateway + $0.10/transaction + interchange)
Stripe ↗
Stripe is a developer-first payments platform offering comprehensive payment processing, billing automation, fraud prevention, and financial tools. Known for best-in-class developer experience with…
- ✓ Industry-leading developer experience with extensive APIs and SDKs
- ✓ Transparent, pay-as-you-go pricing with no setup or monthly fees
- ✓ Comprehensive fraud prevention with machine learning (Radar)
Where each product pulls ahead
These are the distinctive advantages that matter most in this comparison.
AuthorizeNet advantages
- ✓ 28-year track record with 430,000+ merchants
- ✓ 24/7 US-based phone support included
- ✓ Virtual Terminal for phone orders at no extra cost
Stripe advantages
- ✓ Zero monthly fees - true pay-as-you-go pricing
- ✓ Industry-leading developer experience and REST APIs
- ✓ Comprehensive product ecosystem (Billing, Connect, Radar)
Pros & Cons
AuthorizeNet
Pros
- + You prioritize 28-year track record and established stability
- + You need 24/7 US-based phone support (vs email/chat)
- + You use legacy e-commerce platforms with existing plugins
- + You process 200+ transactions/month making $25 fee negligible
- + You need Virtual Terminal for phone/mail orders included
- + Your team comfortable with daily batch settlement cycles
Cons
- − Monthly gateway fee ($25) makes it expensive for low-volume merchants (<100 transactions)
- − Dated API design - integration more complex than Stripe or modern alternatives
- − Additional transaction fee ($0.10) on top of 2.9% + 30¢ standard rates
- − Daily batch settlement (1-2 days) slower than modern real-time processing
- − Mobile SDKs inferior to Stripe - limited native mobile payment features
- − No built-in subscription billing - requires Account Updater add-on ($75/month)
- − Developer documentation less comprehensive than Stripe or Braintree
- − Chargeback fees $25 per dispute (higher than Stripe's $15)
Stripe
Pros
- + You want modern REST API with best-in-class documentation
- + You're low-volume (<100 transactions/month) avoiding monthly fees
- + You need subscription billing or usage-based pricing features
- + You're building marketplace or platform (Stripe Connect)
- + Developer experience and API quality critical to your team
- + You want real-time payment data vs daily batch reports
Cons
- − International cards add 1.5% surcharge making global scaling expensive
- − Currency conversion adds another 1% on top of base rates
- − Manually keyed transactions penalized with extra 0.5%
- − Buy Now Pay Later options jump dramatically to 5.99% + 30¢
- − Add-on products (Radar for Fraud Teams, custom domains) increase costs
- − Chargeback and dispute fees ($15-$29) can accumulate for high-risk businesses
- − Enterprise pricing (IC+) requires significant volume commitment
Which one tends to fit which buyer?
These are conditional guidelines only — not rankings. Your specific situation determines fit.
- → Pick Authorize.Net if: Established business with 200+ monthly transactions prioritizing stability and phone support over innovation
- → Pick Stripe if: Developer-first team or low-volume business wanting modern APIs without monthly fees—startups and SaaS
- → Authorize.Net's $25/month becomes 30% of revenue at 85 transactions; Stripe's pay-as-you-go better for variable volume
- → The trade-off: Proven stability and US support vs modern developer experience and zero monthly fees—not transaction rates (nearly identical)