Credit Card Processors: Authorize.Net vs Paypal

If you've been wondering which credit card processor is best for you, Small Farm Central has outlined a simple comparison:

*PayPal transaction costs can go down to 2.5% and lower depending on monthly volume

**Note that these surcharges only apply to certain types of rewards credit cards. A merchant account is needed to set up credit card processing with Authorize.Net. Small Farm Central works with Total Merchant Services to create new merchant accounts for clients.

  Figure 1. Authorize.Net & PayPal Comparison Chart

Because of the variance of card use, we can't do a pure cost comparison between the providers. But statistics show that 80% of consumers own a debit card compared to 78% who own a credit card. Additionally, 60% of consumers have a rewards card of one type or another. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010).

Making an estimate with these figures in mind, if you are processing $4000-$5000/month or above, you can probably save money by using Authorize.Net. Otherwise, PayPal is your best option, as far as transaction fees go.

Other things to consider:

• With an Authorize.Net Virtual Terminal, you can log in to process phone orders or in-person orders securely using a variety of mobile devices.

• Checking out with Authorize.Net means that your customers don't leave your web site to process a payment and then come back.

• PayPal is perhaps familiar for people who may want to pay directly out of their bank accounts.

• You may temporarily disable an Authorize.net account if you have several months a year that you do not process payments. There is a $25 reinstatement cost, but you could avoid the monthly payment during your off-season.

Note: Google Checkout is being phased out as an integration option due to many problems with processing and customer support that our farmers have experience with Google's solution. You will still be able to use your existing Google Checkout account if you are already using it, but we encourage moving away from Google Checkout.

To offer Paypal as your credit card processing service, read the "Integrating PayPal" article in the Member Assembler Tools section of the Knowledge Base. If you are having trouble, or have a question, please contact Farmer Support by giving us a call at 412.567.3864 or sending us an email to support@smallfarmcentral.com.

If you'd like to get started using Authorize.Net, read the article Setting up Scheduled Payments with Authorize.Net. You will need to set up a merchant account if you do not already have one. Read more about that in the "Credit Card Account Options with Total Merchant Services" article in the Member Assembler Tools section of the Knowledge Base. Or, since setting up these systems can be tedious, Small Farm Central can set up a merchant account for you and walk you through the entire Authorize.Net entire set up process over the phone. Give us a call at 412.567.3864 or send us an email to support@smallfarmcentral.com for more help.

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