Comparison · Updated September 28, 2026
PayPal vs Authorize.net
PayPal
A-
PayPal is a global, feature-rich digital payments platform (consumer wallet + merchant services) with extensive integrations and brand reach. It is trusted by many businesses but criticized in public reviews for dispute handling and account-hold practices.
Authorize.net
A-
Authorize.Net is a mature, Visa-owned payment gateway that offers robust, developer-friendly payment tools, strong fraud controls, and wide platform integrations. Pricing and merchant-account terms that vary depending on whether you use Authorize.Net’s all-in-one plan or attach your own processor.
VS
Overview
PayPal and Authorize.net both let a US business take cards on its own website, but they are built differently. PayPal is the processor and holds the account itself: its Expanded Checkout charges 2.89% + 29¢ on card payments with no monthly fee, and its PayPal and Venmo buttons cost 3.49% + 49¢. Authorize.net, a wholly owned subsidiary of Visa, is a payment gateway. You either buy its all-in-one plan, which bundles a merchant account at 2.9% + 30¢ plus $25 a month, or pay $25 a month plus 10¢ a transaction and a 10¢ daily batch fee to connect a merchant account you already hold. On published self-serve pricing PayPal is cheaper, and it has a published in-person rate of 2.29% + 9¢, which Authorize.net does not. Authorize.net includes recurring billing and its fraud rules in the $25, answers the phone 24/7, and lets an established business keep a merchant account and rate it negotiated with its own bank. Both are graded A- on Payment Review.
Key Takeaways
- ✓PayPal is cheaper for domestic online cards on published pricing: 2.89% + 29¢ with no monthly fee on Expanded Checkout, against Authorize.net's all-in-one 2.9% + 30¢ plus $25 a month. PayPal is lower on both parts of the rate, so on those two prices it costs less at every volume. Both rates are subject to eligibility or approval.
- ✓Authorize.net's own comparison page sets its rate against PayPal's 2.99% + 49¢ standard card rate, not Expanded Checkout's 2.89% + 29¢. On Authorize.net's own math, its all-in-one plan beats that standard rate above about 89 sales a month at a $100 average ticket.
- ✓Authorize.net is built for businesses that bring their own merchant account: $25 a month plus 10¢ a transaction and a 10¢ daily batch fee, with recurring billing, stored customer profiles and its fraud rules included. PayPal's Payflow gateway does the same job, but recurring billing costs $10 a month extra.
- ✓In person, PayPal publishes 2.29% + 9¢ on its point-of-sale app and hardware. Authorize.net sells a mobile app and a Windows point of sale, but publishes no separate card-present rate, and chip cards work only on two processing platforms.
- ✓PayPal charges $20 per card chargeback. Authorize.net's gateway charges $0, but on the all-in-one plan the merchant account's own chargeback fee is not published.
PayPal
PayPal suits small and mid-sized online sellers who want the lowest published card rate with no monthly fee, a PayPal and Venmo button that buyers already trust, and the option to take cards in person on the same account.
Authorize.net
Authorize.net suits established US businesses that hold, or want, their own merchant account, and subscription or B2B sellers who want recurring billing, fraud rules and 24/7 phone support included in one monthly fee.
The Verdict
It Depends on Your Needs
Why?
Both are graded A-, and the choice depends on whether you want a processor or a gateway. If you are starting without a merchant account, PayPal is cheaper on its published pricing. Expanded Checkout charges 2.89% + 29¢ with no monthly fee, against Authorize.net's all-in-one 2.9% + 30¢ plus $25 a month. PayPal also adds a PayPal and Venmo button, a published 2.29% + 9¢ in-person rate, and a $5 cap on ACH. Authorize.net wins when you already hold, or want, a merchant account with your own bank. For $25 a month plus 10¢ a transaction, you keep the processing rate you negotiated, and recurring billing, stored customer profiles and fraud rules are included. The underwriting relationship stays with an acquirer you chose, rather than with a platform that can hold your balance.
Feature by feature
Detailed Comparison
Filter Options
Online card pricing (US published rates, September 2026)
| Feature | PayPal | Authorize.net |
|---|---|---|
| Card rate on your own checkout | 2.89% + 29¢ (Expanded Checkout) Winner | 2.9% + 30¢ (All-in-one plan) |
| Like for like: both are the self-serve rate for card payments taken in your own branded checkout fields. PayPal's Expanded Checkout is billed as Advanced Credit and Debit Card Payments on its fee page, last updated 1 September 2026. Authorize.net's rate is marked 'subject to eligibility'. On a $100 sale PayPal charges $3.18 and Authorize.net $3.20, before Authorize.net's $25 monthly fee. | ||
| Monthly fee | $0 (Expanded Checkout); $30 for Payments Pro Winner | $25 on every plan |
| PayPal's checkout page says 'No monthly or setup fees' for Expanded Checkout. Its older Payments Advanced ($5) and Payments Pro ($30) products still carry monthly fees. Authorize.net's $25 covers the gateway, recurring billing, stored customer profiles, the Advanced Fraud Detection Suite, invoicing and 24/7 support. | ||
| Standard card rate | 2.99% + 49¢ (cards through PayPal's standard checkout) | No separate tier; 2.9% + 30¢ on All-in-one |
| PayPal charges 2.99% + 49¢ on cards taken through its standard checkout rather than Expanded Checkout. This is the figure Authorize.net's own 'Authorize.net vs PayPal' pricing FAQ compares against, which is why that page finds Authorize.net cheaper above 89 transactions a month at $100. Against Expanded Checkout's 2.89% + 29¢, it is not. | ||
| PayPal and Venmo buttons | 3.49% + 49¢; Pay Later 4.99% + 49¢ | No wallet of its own; lists PayPal as an accepted method |
| Only PayPal sells its own wallet checkout. Authorize.net's pricing FAQ lists PayPal among the payment methods it accepts, but its pricing page does not give the cost. It also says a PayPal account is not a merchant account and cannot be used as one with the Authorize.net gateway. | ||
| Interchange-plus pricing | Opt-in: interchange + 0.49% + 39¢ (Advanced card payments) | Through a merchant account you bring (gateway-only plan) |
| PayPal publishes an interchange-plus-plus option on its fee page, subject to activation in account settings, with no extra 1.50% international fee. Authorize.net does not set a processing margin on the gateway-only plan; your acquirer does. | ||
| Setup fee | $0 | $0 |
Card rate on your own checkout
PayPal
2.89% + 29¢ (Expanded Checkout)
Winner
Authorize.net
2.9% + 30¢ (All-in-one plan)
Like for like: both are the self-serve rate for card payments taken in your own branded checkout fields. PayPal's Expanded Checkout is billed as Advanced Credit and Debit Card Payments on its fee page, last updated 1 September 2026. Authorize.net's rate is marked 'subject to eligibility'. On a $100 sale PayPal charges $3.18 and Authorize.net $3.20, before Authorize.net's $25 monthly fee.
Monthly fee
PayPal
$0 (Expanded Checkout); $30 for Payments Pro
Winner
Authorize.net
$25 on every plan
PayPal's checkout page says 'No monthly or setup fees' for Expanded Checkout. Its older Payments Advanced ($5) and Payments Pro ($30) products still carry monthly fees. Authorize.net's $25 covers the gateway, recurring billing, stored customer profiles, the Advanced Fraud Detection Suite, invoicing and 24/7 support.
Standard card rate
PayPal
2.99% + 49¢ (cards through PayPal's standard checkout)
Authorize.net
No separate tier; 2.9% + 30¢ on All-in-one
PayPal charges 2.99% + 49¢ on cards taken through its standard checkout rather than Expanded Checkout. This is the figure Authorize.net's own 'Authorize.net vs PayPal' pricing FAQ compares against, which is why that page finds Authorize.net cheaper above 89 transactions a month at $100. Against Expanded Checkout's 2.89% + 29¢, it is not.
PayPal and Venmo buttons
PayPal
3.49% + 49¢; Pay Later 4.99% + 49¢
Authorize.net
No wallet of its own; lists PayPal as an accepted method
Only PayPal sells its own wallet checkout. Authorize.net's pricing FAQ lists PayPal among the payment methods it accepts, but its pricing page does not give the cost. It also says a PayPal account is not a merchant account and cannot be used as one with the Authorize.net gateway.
Interchange-plus pricing
PayPal
Opt-in: interchange + 0.49% + 39¢ (Advanced card payments)
Authorize.net
Through a merchant account you bring (gateway-only plan)
PayPal publishes an interchange-plus-plus option on its fee page, subject to activation in account settings, with no extra 1.50% international fee. Authorize.net does not set a processing margin on the gateway-only plan; your acquirer does.
Setup fee
PayPal
$0
Authorize.net
$0
Best For Your Business
Recommendations based on your business type
New online store with no merchant account
Recommended
PayPal
PayPal's Expanded Checkout takes cards at 2.89% + 29¢ with no monthly or setup fee, and adds a PayPal and Venmo button. Authorize.net's all-in-one plan charges 2.9% + 30¢ plus $25 a month for the same job.
Established business that already holds a merchant account
Recommended
Authorize.net
Authorize.net's gateway-only plan ($25 a month + 10¢ a transaction + 10¢ daily batch) keeps your negotiated rate and includes recurring billing, customer profiles and fraud rules. PayPal's Payflow gateway can do this too, but it charges extra for recurring billing and advanced fraud screening.
Subscription or membership business on card-on-file billing
Recommended
Authorize.net
Authorize.net includes Automated Recurring Billing and its customer information manager at $0. PayPal lists recurring billing for card payments as a $10-a-month add-on. Both charge 25¢ per card update.
Shop or market seller that also sells online
Recommended
PayPal
PayPal publishes 2.29% + 9¢ for card-present sales on its free point-of-sale app, on the same account as its online checkout. Authorize.net publishes no card-present rate, and chip cards work on its app only on two processing platforms.
B2B seller taking corporate cards and large bank payments
Both support Level 2 and 3 data. PayPal's ACH is capped at $5 a payment, where Authorize.net's eCheck is 0.75% uncapped. Authorize.net's gateway plan lets you pair Level 3 data with an interchange-plus merchant account you negotiate yourself. PayPal offers interchange-plus-plus pricing, at interchange + 0.49% + 39¢.
PayPal: Best for 2 use cases
Authorize.net: Best for 2 use cases
Frequently Asked Questions
Common questions about this comparison
On published US self-serve pricing for domestic cards, PayPal. Its Expanded Checkout charges 2.89% + 29¢ on cards with no monthly fee. Authorize.net's All-in-one plan charges 2.9% + 30¢ plus $25 a month. Authorize.net's own comparison uses PayPal's 2.99% + 49¢ standard card rate, and by its own math Authorize.net is cheaper against that figure above about 89 sales a month at $100 each. For a business with its own merchant account, Authorize.net's gateway-only plan ($25 a month + 10¢ + 10¢ daily batch) can come out cheaper, depending on the rate the merchant account charges.
No. Authorize.net says a PayPal account is not a merchant account, because PayPal pools its sellers into one large account, so it cannot be used with the Authorize.net gateway. You need a merchant account from a bank or processor, or Authorize.net's All-in-one plan, which includes one.
No. Authorize.net is a wholly owned subsidiary of Visa. It came to Visa with CyberSource, which Visa bought in 2010. PayPal owns Braintree, a different gateway. PayPal also runs its own gateway, Payflow, which can work with a merchant account from another provider.
Not on the gateway. Authorize.net says its gateway has no contract and no early termination fee, and its setup fee is $0. The merchant account on its All-in-one plan may have separate terms, shown at signup. A merchant account bought through a reseller carries the reseller's terms. PayPal has no contract and no monthly fee on Expanded Checkout.
PayPal puts sales in your PayPal balance straight away. A standard bank transfer is free and typically takes one to three business days, and an instant transfer costs 1.50% (minimum 50¢). With Authorize.net, your merchant service provider pays you. Authorize.net's pricing page says funds typically arrive two to three business days after the daily batch settles, and that some providers offer next-day funding. Elsewhere on the same page it gives the industry average as three to five business days.
Yes. Use its mobile app with a card reader, Tap to Pay, or its Windows point-of-sale app. It publishes no separate card-present rate, and chip card support is limited to the First Data Nashville and TSYS platforms. PayPal publishes 2.29% + 9¢ for card-present payments on its point-of-sale app, with no monthly fee.
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