Authorize.net vs Stripe: when a dedicated merchant account wins

Is Authorize.net cheaper than Stripe?

It depends on your volume. For a small shop, Stripe is cheaper: the per-transaction rates match on Authorize.net's All-in-One option, and Authorize.net adds a monthly gateway fee that Stripe does not charge. Past a certain volume the picture flips, because the gateway-only path puts your processing on interchange plus a markup, which tracks the real cost of each card instead of charging one flat rate for a debit card and a rewards card alike. Where the break-even falls depends on your volume, average ticket and card mix, so there is no single number that is true for everyone. Send us a recent Stripe statement and we will work it on your figures, and say plainly if Stripe is the better deal at your size.

Do I need a merchant account to use Authorize.net?

Yes. Authorize.net is a gateway, and a gateway with nothing behind it cannot approve a single payment. Authorize.net's All-in-One option bundles a merchant account, subject to its own eligibility rules, at a flat rate; the gateway-only option connects a merchant account from a processor, which is what we do, from one application. If you already have a merchant account, we can often connect Authorize.net to it; send us a statement and we will tell you whether yours is compatible.

How long does approval take?

Approvals usually come back within hours, three days at most. That is the merchant account, which is the part that needs underwriting; the gateway is provisioned once the account is approved, and on the setup call we hand you the API Login ID and Transaction Key and run a test transaction with you. Bring your business details, your website, your sales channels and any processing history to the first call. A business that underwriting reviews more closely lands at the longer end of that range, and we tell you up front which end you are on.

Can I keep Stripe while I switch?

Yes, and we recommend it. Nothing about opening a merchant account requires closing Stripe, so the usual sequence is: the merchant account is approved, the gateway goes live, new checkout traffic moves to Authorize.net, and Stripe keeps running for the subscriptions and saved cards that have not moved yet. Once the last one is rebuilt, you turn Stripe off or leave it as a backup. The one thing to avoid is cutting Stripe over before the new account is live.

Will my saved cards move from Stripe?

Mostly, yes. Stripe has a documented process for migrating stored card data to another PCI-compliant provider when the account owner asks, and the receiving side is Authorize.net's customer profiles, so repeat customers do not enter a card again. What does not come across is the schedule: a Stripe subscription is a billing rule, not a card, so each one is rebuilt in Authorize.net's recurring billing or in the subscription platform on top of it. We coordinate the export, the import and the rebuild before you cancel anything. Our recurring billing page covers card on file in more depth.

Can I keep PayPal as a button on my site?

Yes, and many stores do. PayPal is not a merchant account; it is a wallet and a checkout button that some customers prefer, and taking it away costs you those orders. PayPal Checkout is listed at 3.49% plus 49 cents per transaction, as published by PayPal at the time of writing, which is the reason to keep it as the second button rather than the first. Put the card form on your merchant account, where the bulk of your volume runs on interchange plus a markup, and leave PayPal for the customers who reach for it.

Does Authorize.net have phone support?

Authorize.net runs its own merchant support for the gateway, by phone and online, and your login gives you access to it. The bigger difference is who you call first. With Stripe you work a problem through Stripe's channels, and nobody there is assigned to your account. With a merchant account through Stratamize, the first call is to our team: we know how your account was boarded, we can see what the gateway is doing, and we escalate to Authorize.net or the processor for you.

Stripe closed my account last week. What do I do?

Tell us three things: what Stripe said when it closed you, what you sell, and your recent volume and chargeback history. If the closure was a risk decision about an industry Stripe restricts, which is the most common case we see, a dedicated merchant account underwritten for that industry is the answer. Approvals usually come back within hours, three days at most.

If the closure was about chargebacks or a product the card networks themselves restrict, underwriting will look at the same facts Stripe did, and the honest answer may be a reserve, different terms or no. We say so before you apply, not after. Keep your customer list either way: the cards can be exported from Stripe once the new account is live.