PayPal vs. Authorize.Net for eCommerce

Choosing the Right Online Payment Processor for Your Business

Helping you decide between PayPal and Authorize.Net for your eCommerce site

When selling a product or service online, having a reliable and secure payment process is key. PayPal and Authorize.Net are two of the most popular online payment processors for making and accepting payments online. Both are secure and dependable platforms for online payment. However, key differences may make one more suitable than the other for your eCommerce business.

Authorize.Net

Authorize.Net, a Visa company, is a payment gateway that processes credit cards and eChecks. Often viewed as more professional than PayPal, Authorize.Net allows you to have greater control. Authorize.Net allows your customers to stay on your site to complete the transaction and has better customer support than PayPal. However, Authorize.Net charges a $25 monthly gateway fee, which can make it more expensive than PayPal for low-volume sellers. You can connect it to your own merchant account or choose its all-in-one plan, which includes one. Having your own merchant account means that the money is yours once it goes into your account. Authorize.Net is ideal for larger eCommerce sites that want total control and have a lot of sales.

PayPal

PayPal is a third-party payment processor. Unlike Authorize.Net, it accepts PayPal transactions as well as credit cards as forms of payment. With PayPal Checkout, customers usually log in to PayPal in a pop-up window to complete the transaction, which some customers may find off-putting. While having a PayPal merchant account linked to the payment processor saves you time and extra fees, it also means that PayPal has some control over your online payments.

If PayPal notices unusual activity, they can freeze your account, which can keep you from receiving your payments. PayPal is also said to have less responsive customer support. However, PayPal has no monthly fee and is easier than Authorize.Net to set up and run. PayPal is ideal for smaller businesses that don’t do or aren’t expecting a lot of sales.

PayPal or Authorize.Net: Which is Best for Your eCommerce Business?

As with all decisions between products and software, the primary deciding factor is your business needs. If you are a business that is just starting out, PayPal is the better option because of the lower cost and ease of use. However, if your eCommerce business is growing and doing a lot of sales, Authorize.Net would be the best choice. Overall, it is most important to evaluate your business’ needs before choosing which online payment processor to use.

Clarity Can Help

Whether you choose to use PayPal, Authorize.Net, or another payments network, Clarity can help connect it to your eCommerce site. Clarity has many years of experience building hundreds of websites that accept payment online.