Choosing between using & Paypal does not have to be so difficult if you understand the pricing structure of both. Established businesses can easily choose which direction to go based on the information provided in this post.

Here are the cost and fees working with both of these payment processors.

Features Authorize.Net (Merchant) PayPal
Merchant Account Required Yes No
Setup Fee $49* 0
Monthly Fee $25* 0 (Standard)
$30 (Pro)
Transaction Fee 10 cents/per
+ Merchant Account Fees*
2.2 – 2.9%
+ 30 cents/per
Batch Fee 10 cents/batch* 0
Fees vary by card type (e.g. Visa, MC, Amex) Yes No
Settlement Period 1 – 7 days, automatically 1-2 days, manual deposits
Contract Monthly/Annual* None
Subscriptions/recurring billing Yes Yes (Business/Premier accounts only)
Electronic Checks (eCheck) Yes Yes
Customer stays on your website Yes Yes (Pro only)
Hosted payment form Yes Yes
Escrow Funds No No
Payouts to multiple parties No Yes
Setup Time Varies – depends on merchant account (1-14 days) “Instant” setup, then verify bank deposits (1-2 days)

Here is our general recommendations – If you already have a merchant account, then using can be a great option for you since they have a low $35 per month fee + 30 cents per transaction. If you are a high volume seller, you will save a lot on fees. If you have a merchant account, but do not sell high volume, you might be better off going with Paypal as your online payment processor.

Paypal – If you are just starting your business and are bootstrapping your way by, then Paypal is a great start because it is free to join and there is no monthly cost. It is a well respected payment platform for your business and you only get charged a fee when you make money.


These are both two very trusted payment processors and they have a different fee structure. If you are looking for a quick setup and no upfront cost, then Paypal is your best option. If you are an established merchant with a high volume of sales, can save you money in the long run.

If you are looking for an affordable and professional way to invoice your clients from or Paypal, then try out Minterapp. It is a great way to generate invoices, and get paid by Paypal and