Authorize.net vs. Square: A Comprehensive Comparison

Choosing the Right Payment Processing Strategy for Your Business

When selecting a payment processing solution, the choice between Authorize.net and Square represents a fundamental decision about your business model and technical requirements. Authorize.net offers a specialized payment gateway that lets you choose your own merchant account provider, while Square delivers an all-in-one ecosystem with integrated POS hardware and business management tools, with predictable flat-rate pricing. This decision shapes not just your payment processing costs, but your entire operational infrastructure and scaling capabilities. Authorize.net, founded in 1996 and now a Visa subsidiary, serves hundreds of thousands of businesses, focusing on gateway flexibility and merchant account independence. Square processes $228 billion annually, serving 4 million sellers with comprehensive business management tools built into a unified platform.

Key Takeaways

Target Market: Authorize.net serves businesses wanting processor flexibility and established merchants with existing banking relationships, while Square dominates small businesses seeking simplicity and comprehensive tools
Business Model: Authorize.net operates as a payment gateway requiring a separate merchant account, while Square provides an all-in-one solution with integrated merchant services
Pricing Structure: Authorize.net charges $25/month plus $0.10 per transaction (gateway only), while Square uses flat-rate pricing at 2.6% + 15¢ for in-person and 2.9% + 30¢ for online transactions
Technical Complexity: Authorize.net requires more technical setup and merchant account procurement, while Square offers immediate activation with minimal configuration
Flexibility vs. Simplicity: Authorize.net provides processor independence and extensive customization, while Square prioritizes ease of use and integrated business tools

Payment Solution Type Overview

Modern payment processors can be categorized into two distinct approaches based on their integration model and service offerings.

Payment Gateways, like Authorize.net, serve as the secure bridge between merchants and processors, encrypting and transmitting payment data without providing merchant services directly. These solutions allow businesses to select their preferred merchant account provider, offering flexibility in choosing processing rates and terms. Payment gateways emphasize technical integration capabilities and processor independence.

All-in-One Payment Processors, like Square, combine payment gateway, merchant account, and processing services into a single integrated platform. These solutions handle all aspects of payment processing—from authorization to settlement—typically using flat-rate pricing models. All-in-one processors prioritize simplicity, quick onboarding, and integrated business management tools that help merchants manage operations from a unified dashboard.

Authorize.net Overview

Authorize.net is a payment gateway service provider that enables merchants to accept credit card and electronic check payments through their website and via an Internet Protocol connection. Founded in 1996 and acquired by Visa in 2010 for $2 billion through the CyberSource acquisition, Authorize.net has established itself as one of the most widely adopted payment gateways in North America.

What Is Authorize.net?

Authorize.net provides the infrastructure and security necessary to ensure fast, reliable, and secure transmission of transaction data between merchants and financial institutions. The platform functions primarily as a payment gateway, though it offers full merchant account services through partnerships. As of 2014, Authorize.net and its parent CyberSource served approximately 450,000 customers, focusing on small and medium-sized businesses that value processing flexibility and gateway independence.

How Does Authorize.net Work?

Authorize.net operates by securely capturing and transmitting payment information between the merchant’s website or point of sale and the payment processor. When a customer makes a purchase, Authorize.net encrypts the payment data, sends it to the appropriate financial institutions for authorization, and returns the approval or decline response to the merchant—all within seconds.

The platform’s gateway-centric approach allows businesses to maintain relationships with their preferred merchant account providers while benefiting from Authorize.net’s robust infrastructure, security features, and extensive integration capabilities.

Authorize.net Features and Pricing

Authorize.net’s Features

Payment gateway with extensive integration options
Virtual Point of Sale (VPOS) for computer-based card processing
Automated Recurring Billing (ARB) for subscription management
Advanced fraud detection suite with customizable rules
Customer Information Manager (CIM) for secure payment profile storage
Address Verification Service (AVS) and Card Code Verification (CVV)
Level II and Level III processing support for B2B transactions
eCheck.Net for ACH payment processing
Mobile card readers integrated with VPOS system
Sandbox environment for development testing

Authorize.net’s Pricing

Gateway-Only Plan:

$25 per month gateway fee
$0.10 per transaction
$0.10 daily batch fee
Requires a separate merchant account (rates vary by provider)

All-in-One Plan (with Merchant Account):

Additional Services:

Advanced Fraud Detection Suite: Variable monthly fee (typically $5-$10)
eCheck.Net: 0.75% per transaction plus monthly fee
Account Updater service: Additional monthly charge

Authorize.net’s Strengths and Weaknesses

Strengths of Authorize.net

Gateway Flexibility: Freedom to choose and change merchant account providers without switching gateways
Extensive Integrations: Compatible with hundreds of shopping carts and business applications
Visa Backing: Supported by one of the world’s largest card networks, ensuring stability and continuous innovation
Processor Independence: Ability to negotiate better rates with multiple merchant account providers
Advanced Features: Comprehensive fraud detection, recurring billing, and Level II/III processing
Established Reputation: Over 25 years serving hundreds of thousands of businesses
High-Risk Support: Compatible with high-risk merchant accounts and specialized industries

Weaknesses of Authorize.net

Requires Separate Merchant Account: More complex setup requiring additional relationships and contracts
Monthly Fees: $25 monthly gateway fee, regardless of transaction volume
Dated Interface: User interface is considered less modern compared to newer platforms
Geographic Limitations: Primarily serves United States, Canada, and Australia
No Integrated POS: Limited native point-of-sale capabilities compared to all-in-one solutions
Technical Expertise Required: Integration and setup require more technical knowledge

Who Benefits the Most From Authorize.net?

Authorize.net Is Best For

Established Businesses: Companies with existing merchant account relationships wanting gateway flexibility
High-Risk Merchants: Businesses in industries requiring specialized merchant account providers
E-commerce Focused: Online businesses requiring robust gateway integration with shopping carts
High-Volume Processors: Businesses that can negotiate better merchant account rates to offset gateway fees
B2B Companies: Organizations benefiting from Level II/III processing for lower interchange rates
Technical Teams: Businesses with development resources to customize and integrate the gateway

Ideal Use Cases For Authorize.net

E-commerce businesses requiring custom shopping cart integrations
Recurring billing and subscription-based business models
B2B companies processing large commercial transactions
Businesses needing processor independence and flexibility
Organizations requiring extensive fraud prevention customization
Multi-channel businesses integrating online and phone orders

Square Overview

Square is a point-of-sale system for sellers with physical or online stores, launched in 2009 by Block, Inc., enabling merchants to accept card payments and manage business operations. As of 2024, Square is the U.S. market leader in point-of-sale systems, serving 4 million sellers and processing $228 billion annually.

What Is Square?

Square revolutionized small business payments by making card acceptance accessible through simple mobile card readers and comprehensive business management software. Beyond payment processing, Square has evolved into a complete business ecosystem offering inventory management, staff scheduling, customer relationship tools, and banking services. The platform’s strength lies in its ability to serve businesses of all sizes with transparent, predictable pricing and no long-term contracts.

How Does Square Work?

Square operates through an integrated ecosystem that combines payment processing with comprehensive business management tools. When customers make payments, Square’s system handles secure transaction processing, provides real-time reporting, and automatically updates inventory and sales data. The platform’s simplicity allows businesses to start accepting payments immediately with minimal setup requirements.

Square’s approach centers on removing complexity from business operations by providing everything needed to run a business in one integrated platform, from payment acceptance to payroll management and financial services.

Square Features and Pricing

Square’s Features

Complete POS system with in-person payments at 2.6% + 15¢
Online payment processing at 2.9% + 30¢ per transaction
Integrated inventory management and customer relationship tools
Staff management with scheduling and payroll integration
Banking services through Square Banking
Free mobile app and basic POS software
Hardware ecosystem including card readers, terminals, and registers
Square Online for e-commerce
Square Appointments for service businesses
Square Invoices with 3.3% + 30¢ for cards

Square’s Pricing

Free Plan:

Plus Plan:

$89/month
Discounted processing fees
Advanced features and reporting

Premium Plan:

Custom pricing for high-volume businesses
Dedicated support and custom solutions

Square’s Transaction Fees

In-person payments: 2.6% + 15¢
Online payments: 2.9% + 30¢
Manually entered payments: 3.5% + 15¢
Invoices: 3.3% + 30¢ for cards, 1% minimum $1 for ACH

Square’s Strengths and Weaknesses

Strengths of Square

Simplicity: Easy setup and intuitive interface requiring no technical expertise
Comprehensive Platform: All-in-one solution with integrated business management tools
No Monthly Fees: Free basic plan makes it accessible for new businesses
Hardware Ecosystem: Purpose-built POS hardware designed for various business types
Transparent Pricing: Clear, predictable fees with no hidden costs
Market Leader: Proven track record serving 4 million sellers
Instant Activation: Start accepting payments immediately without waiting for approval
Banking Integration: Access to Square Banking for business financial services

Weaknesses of Square

Higher Processing Costs: Flat-rate pricing becomes expensive for high-volume businesses
Limited Customization: Less flexibility compared to gateway-only solutions
Geographic Limitations: Available in only 8 countries versus global alternatives
Account Holds: User reports of unexpected account holds or shutdowns
No Processor Choice: Cannot switch processing providers while maintaining Square POS ecosystem
Currency Limitations: Limited multi-currency support compared to international processors

Who Benefits the Most From Square?

Square Is Best For

New Businesses: Startups and small businesses needing quick, simple payment acceptance
Low to Medium-Volume Processors: Businesses where flat-rate pricing remains cost-effective
Brick-and-Mortar Retailers: Stores requiring integrated POS systems with inventory management
Service Businesses: Organizations needing appointment scheduling, staff management, and customer tools
Multi-Location Operations: Businesses requiring centralized management across multiple locations
Non-Technical Users: Business owners wanting plug-and-play solutions without IT requirements

Ideal Use Cases For Square

Pop-up shops and mobile vendors that require portable payment solutions
Restaurants and food service businesses that need comprehensive POS functionality
Retail stores that require integrated inventory and customer management
Service-based businesses that need appointment booking and staff scheduling
Businesses wanting comprehensive financial services, including business banking
Quick-service restaurants and cafes which benefit from streamlined POS operations

Financial & Market Insights

Market Position: Square processed $228 billion in payments during 2024, maintaining its position as the U.S. market leader in point-of-sale systems, serving 4 million sellers. Block (Square’s parent company) was added to the S&P 500 in July 2025, highlighting its maturation as a major financial services provider.

Authorize.net, as part of Visa’s CyberSource division, served approximately 450,000 customers as of September 2023, focusing on small to medium-sized businesses through its gateway services. As a Visa subsidiary, Authorize.net benefits from the resources and stability of one of the world’s largest payment networks.

Growth Trajectories: Square continues expanding its ecosystem with new financial services and international expansion while maintaining its core focus on small-business empowerment. Square’s GPV reached $210 billion in 2025 with continued growth in integrated business services.

Authorize.net maintains its position as one of the most established payment gateways, with Visa continuing to invest in platform improvements. Visa rolled out Authorize.net 2.0 at ETA TRANSACT in April 2025, introducing enhanced features and modernized interfaces to compete with newer gateway solutions.

Investment and Innovation: Square focuses on comprehensive business solutions, including Square Banking, Square Capital, and international growth. The company continues to invest in AI-powered tools and expand its product ecosystem to serve diverse business needs.

Authorize.net benefits from Visa’s resources and commitment to maintaining leadership in payment gateway services. The platform continues evolving with enhanced security features and improved integration capabilities.

Feature Comparison

Feature	Authorize.net	Square
Billing & Invoicing	✅	✅
Currency Support	⚠️	⚠️
Customizable Branding/White Label	✅	⚠️
Deployment Options	✅	✅
Fraud Prevention Tools	✅	✅
Integration Capabilities	✅	✅
Management Tools	✅	✅
Payment Types Support	✅	✅
Reconciliation Tools	✅	✅
Reporting & Data Analysis	✅	✅
Security/Compliance	✅	✅
Smart Routing	⚠️ (requires third-party app)	❌
Split Payments	✅	✅
Supported Payment Methods	✅	✅
Tokenization	✅	✅
Vaulting	✅	✅

Final Summary & Recommendation

Key Reasons to Choose Authorize.net

You want the flexibility to choose your own merchant account provider
You need processor independence to negotiate competitive processing rates
You operate a high-risk business requiring specialized merchant account support
You want extensive gateway integration options with your existing business systems
You process high volumes and can benefit from negotiated merchant account rates
You require advanced fraud detection customization and Level II/III processing
You have technical resources to manage gateway integration and customization

Key Reasons to Choose Square

You want immediate activation with no setup complexity or technical requirements
You need an all-in-one solution with integrated POS hardware and business management tools
You’re a new business requiring a quick setup with no monthly fees or long-term commitments
You operate primarily brick-and-mortar locations needing comprehensive POS functionality
You prefer the simplicity of flat-rate pricing without complex fee structures
You want access to integrated banking services and comprehensive business tools
You process low to medium transaction volumes where flat-rate pricing is cost-effective

The Bottom Line: The choice between Authorize.net and Square is primarily determined by your business model, technical capabilities, and need for processor independence. Authorize.net excels for businesses wanting gateway flexibility, processor choice, and advanced customization capabilities, particularly those with technical resources and existing merchant account relationships. Square dominates for small to medium businesses seeking simplicity, comprehensive features, and predictable flat-rate pricing without technical complexity.

Authorize.net is ideal for established businesses, high-risk merchants, and companies wanting processor independence, while Square specifically targets new and growing businesses that prioritize simplicity and integrated business tools over processor flexibility. The two solutions serve different needs, making the decision largely dependent on your technical capabilities, processing volume, and preference for flexibility versus simplicity rather than a direct feature comparison.

Important Note: Authorize.net’s gateway-only model requires establishing a separate merchant account relationship, adding complexity but providing long-term flexibility and potentially lower processing costs for high-volume businesses. Square’s all-in-one model eliminates this complexity but limits processor choice and may become more expensive as transaction volumes grow.

This comparison is based on publicly available information as of October 2025. Pricing and features may vary based on specific business requirements and negotiations with each provider.