Comparing Gateway & Processor to PayPal & Google

Why do I Need a Payment Gateway?

The vast majority of e-commerce merchants do not have the technical resources, money or expertise to build a direct connection to the payment processing networks. For this reason, payment gateways like Authorize.Net provide merchants with the complex infrastructure and security necessary to connect their Web sites to the payment processing networks. In other words, a payment gateway acts just like a traditional credit card swipe machine you find in the physical retail world.

Compare to Alternative Payment Systems

Merchant Account and Authorize.Net Payment Gateway Account PayPal Express Checkout Google Checkout
Your Money
Receiving Your Money As few as 1-2 days, depending upon your merchant account provider. Automatic deposit into your merchant account. 3-4 business days; merchant must request transfer to their bank account; 1-2 weeks for paper check ($1.50 per check). Withdraw limit may apply (restricts the funds you receive). Up to 5 business days; merchant must request transfer to their bank account. Monthly payout limit may apply (restricts the payout you receive).
Safety of Your Money Your merchant account is with a financial institution, so your funds are FDIC insured. Not a regulated financial institution, not necessarily FDIC insured. Not a regulated financial institution, not FDIC insured.
Seller Benefits
Customer Reach Credit cards remain the most popular online payment type—accounting for 85%** of online purchases. If you do not directly accept credit cards, you are missing out on business. Shoppers must create a PayPal account to make purchases. Shoppers must create a Google Checkout account to make purchases.
Competitive Pricing Flexible pricing. We have hundreds of resellers competing for your business. Rates controlled exclusively by eBay®/PayPal. Rates controlled exclusively by Google™.
Advanced Fraud Protection You set fraud controls to suit your unique business:

  • Authorize.Net Fraud Detection Suite™ (FDS)
  • Address Verification Service (AVS)
  • Card Code Verification (CCV)
You have no visibility into the fraud filters/risk modeling PayPal uses. Their controls may cost you legitimate business by declining transactions you may otherwise wish to accept. You have no visibility into the fraud filters/risk modeling Google uses. Their controls may cost you legitimate business by declining transactions you may otherwise wish to accept.
Transaction Dispute Resolution You are represented by your reseller and acquiring bank, both of which share your interest in getting paid. Mediation service that represents both buyer and seller, making fair resolution challenging and risking the possibility of frozen funds/account. Mediation service that represents both buyer and seller, making fair resolution challenging and risking the possibility of frozen funds/account.
Customer Support
  • Online Knowledge Base
  • Toll-free phone support
  • Online chat
  • Web form e-mail
Web form e-mail
Toll-free phone support is difficult to find, and available to only silver level PowerSellers and above.
Self help only.
Customer Experience
User Satisfaction The preferred payment gateway of both resellers and merchants. Only 44% of shoppers rate their shopping experience as either very good or good.* Only 19% of shoppers rate their shopping experience as either very good or good.*
Shopper Experience Customers can pay seamlessly without being forced to leave your site. Checkout process is interrupted; customers must leave your site to make payments. You lose the ability to communicate with your customer—and possibly the sale. Checkout process is interrupted; customers must leave your site to make payments. You lose the ability to communicate with your customer—and possibly the sale.
Building Your Business
Credibility and Professionalism of Your Site Accepting credit cards directly on your site lends credibility that you have an established business. Many shoppers view PayPal strictly as a solution for amateur or inexperienced vendors that may not have a proven business. You must prominently advertise Google on your site, whether that fits with your site design or not.
Building Your Brand You control the look of your checkout page, either on your own site or by using our hosted payment form, allowing you to reinforce your company’s brand. Your customers are redirected to another company’s checkout page. Your customers are redirected to another company’s checkout page, and you have almost no ability to customize the checkout process.
Repeat Customers You control your customer’s payment information, making it possible to market to your customers for repeat business. Authorize.Net provides subscription payment services called Automated Recurring Billing™ (ARB) and Customer Information Manager (CIM), which securely store customer data for simple and secure repeat transactions. Restricts customer contact. You do not control access to your customer’s e-mail address, making it difficult to build your brand with your customer base.

* Survey of online shoppers conducted January 2007 by J.P. Morgan.
** Authorize.Net

This competitive information is for illustrative purposes only and is subject to change at any time. Please contact us to report information you believe to be out of date.


Our Testimonials

I have been using 1st National's credit card processing service for over 4 years. They are fabulous. As a Criminal Attorney, I travel a lot and need to help some clients in remote places. Their telephone based (Telepay) and Online Processing tools, give me the flexibility and immediate access I need to operate my practice efficiently. Thank you: 1st National Processing.

Kendric Rollins, Esq.
Rollins Law Group
Our full service dental office at the heart of Los Angeles has been enjoying the fabulous customer service that 1st National Processing provides. Our merchant account savings, since switching to them last year, have been tremendous and we continue to refer them to other dental & medical professionals that we work with.

Dr. Neil McLeod
West Hollywood Cosmetic Dentist