Short answer
They sit in different places in the payment stack.
Square and Authorize.net are not interchangeable processors. Square runs checkout, processing, and most of the business software through one account. According to Square, it holds a merchant services relationship with acquiring banks and processes sellers through that infrastructure. Authorize.net is primarily the gateway layer: it moves card data from your website, virtual terminal, or reader to a processor/acquirer. You still need a merchant account—either one you already have (Gateway Only) or the merchant account Authorize.net bundles in All-in-One.
Square usually fits a small business starting from scratch that wants technicians, a counter, or an office to take cards quickly, send invoices, and keep reporting in one dashboard. Authorize.net usually fits a business that must keep a bank/ISO merchant account, already has shopping-cart or ERP integrations built for Authorize.net, or wants gateway features (hosted checkout, CIM/recurring profiles, virtual terminal) without switching to Square’s payments ecosystem.
You generally cannot plug Authorize.net in as Square’s gateway, or use Square as the processor behind Authorize.net. Separate parts of a business can run each product independently, but that creates two payment ecosystems and two reconciliation problems—not one integrated stack.
Pricing verified August 2026 from Authorize.net’s official pricing page and Square’s published fees (Support Center and squareup.com/pricing). Gateway-only Authorize.net cost still depends on your separate processor. Confirm the offer you sign.
Comparison summary
Payment architecture
Authorize.net
Authorize.net is the gateway layer; you still need a merchant account (yours or All-in-One).
Integrated POS + business tools
Square
Square bundles processing, hardware, invoices, and POS in one seller account.
Published rate you can estimate
Square
Square publishes in-person, online, and keyed rates; Gateway Only Authorize.net still needs processor pricing.
Square and Authorize.net aren't the same type of payment product
A card payment typically travels: customer → checkout or POS → payment gateway → processor/acquirer → card network → issuing bank. The gateway is the software that captures and encrypts the card and sends the authorization. The processor/acquirer (and merchant account) is what actually settles money toward your business bank account.
Authorize.net occupies the gateway slot. Its own documentation distinguishes a payment gateway from a merchant account and sells two published setups: Gateway Only (connect Authorize.net to an existing merchant account) and All-in-One (gateway plus a merchant account). Features such as virtual terminal, digital invoicing, Automated Recurring Billing, and Customer Information Manager run on that gateway. In-person payments are possible via compatible readers, Virtual Point of Sale, or Tap to Pay—but those still settle through the merchant-account path, not a Square-style hardware store.
Square occupies several slots at once. You create a Square account, take payments in the Square POS app or online tools, and Square submits the transaction to its acquiring-bank relationship. Square’s own explainer says it “acts as one giant merchant services account for all businesses that use Square payment processing.” That is why you do not bring your own merchant account to Square, and why Square hardware, invoices, and reporting live in the same product family.
Quick decision guide
Which product fits your situation.
Choose Authorize.net if:
- You already have a merchant account with a bank or processor and want a gateway that connects to it (Authorize.net Gateway Only), instead of replacing that relationship.
- Your website, shopping cart, or industry software already supports Authorize.net (API login + transaction key) and changing processors would mean a development project.
- You need gateway-centered tools—virtual terminal, CIM/card-on-file, Automated Recurring Billing, digital invoices—while keeping processor choice or an existing acquirer quote.
- A bank, franchise, or ERP standard specifies Authorize.net-shaped integrations, and migrating stored payment profiles would be costly.
Choose Square if:
- You are starting from scratch and want payments, POS, invoices, and hardware in one account with published per-transaction rates and no monthly Square Free software fee.
- Technicians collect cards in the field, or you run a small counter, and you want Square Readers/Terminal/Register plus a POS app staff can learn quickly.
- You do not have (and do not want) a separate merchant-account contract; you are willing to process through Square’s bundled payments infrastructure.
- Most of your volume is straightforward in-person, invoice, or simple online checkout rather than a custom gateway integration.
Consider neither if:
- You need a modern developer payments platform with Billing/Connect-style products—compare Stripe (see Stripe vs Square) rather than forcing Square or a legacy gateway.
- You want interchange-plus statements without a separate $25 gateway layer—Helcim (or similar) may fit better than Gateway Only plus an opaque ISO.
- Your storefront is Shopify—Shopify Payments is usually the native rail; Authorize.net vs Shopify Payments only matters if you have a real reason to leave Shopify’s processor.
- You want a reseller countertop POS ecosystem (Clover) rather than Square’s hardware or a gateway.
Feature comparison
How these products actually differ—not a generic “strong vs good” grid.
| Question | Authorize.net | Square |
|---|---|---|
| Product type | Payment gateway (Visa/CyberSource). Optional All-in-One adds a merchant account. | Integrated payments + POS/business platform. |
| Where it sits in the stack | Gateway between your checkout/POS and a processor/acquirer. | Checkout/POS, gateway functions, and processing in one Square account. |
| Merchant account | Required. Bring your own (Gateway Only) or use All-in-One. | You process through Square’s merchant-services account; you do not bring a separate acquirer. |
| Use with the other product | Not as Square’s gateway. Separate business units could run it independently. | Square does not accept Authorize.net as a connected gateway (Square has stated they offer overlapping services). |
| In-person payments | Compatible readers, VPOS, Tap to Pay—settles via your merchant account. | Square POS + Readers, Terminal, Register, Tap to Pay; hardware ecosystem is a core product. |
| Online / ecommerce | Hosted forms and APIs into carts and custom sites; processor still behind the gateway. | Square Online, checkout, and APIs; processing stays on Square. |
| Virtual terminal / keyed | Browser virtual terminal (Accept Payments) for phone/mail orders. | Virtual Terminal and keyed/card-on-file at a higher published rate than tap/dip/swipe. |
| Invoices / payment links | Digital invoicing through the same gateway (cards, eCheck, wallets per Authorize.net). | Square Invoices and payment links; rates follow the invoice/online schedule on your plan. |
| Recurring billing | Automated Recurring Billing and CIM (customer payment profiles); Account Updater is an add-on. | Square subscriptions / card on file on Square’s rates; tokens do not transfer to Authorize.net CIM. |
| Pricing structure | All-in-One: published % + ¢. Gateway Only: $25 + 10¢ + 10¢ batch plus your processor. | Published rates by method (in-person, online, keyed) and Square Free / Plus / Premium plan. |
| Monthly software/gateway fee | $25/month on published plans (no gateway setup fee). | Square Free: $0 software. Plus $49/location and Premium $149/location if you subscribe. |
| Contracts | Gateway: no contract/ETF per Authorize.net. All-in-One merchant account may have separate terms. | No early-termination fee on Square processing (per Square). Plus/Premium can be canceled or switched. |
| Best fit | Existing merchant account, gateway integrations, or token/ERP constraints. | Greenfield SMB that wants one payments + POS + invoice stack. |
| Biggest tradeoff | Two-vendor cost (unless All-in-One) and more implementation work. | Less processor portability; you adopt Square’s ecosystem and risk/underwriting model. |
Pricing comparison
What to expect to pay.
A percentage-for-percentage comparison is often misleading. Square’s published rates include processing. Authorize.net Gateway Only is gateway fees only; the merchant account/processor still charges its own rates. All-in-One is the published bundle (gateway + merchant account) and is the closer apples-to-apples published number—not Gateway Only plus an unknown ISO quote.
According to Authorize.net (August 2026): both published plans are $25/month with $0 gateway setup and no early-termination fee on the gateway. All-in-One is $25/month plus 2.9% + 30¢ per transaction. Gateway Only is $25/month plus 10¢ per transaction and a 10¢ daily batch fee, on top of whatever your processor charges. eCheck.Net is listed at 0.75% with additional eCheck fees. If you applied for a merchant account through All-in-One, Authorize.net notes that merchant-account terms can differ from the gateway’s no-ETF policy. Custom options are offered above $500K/year.
According to Square (August 2026): Square Free has no monthly POS software fee. Published U.S. processing includes 2.6% + 15¢ tap/dip/swipe, 3.3% + 30¢ online or invoices, 2.9% + 30¢ online API, and 3.5% + 15¢ manual entry or card on file. Square Plus is $49/month per location (2.5% + 15¢ in-person; 2.9% + 30¢ online/invoices). Square Premium is $149/month per location (2.4% + 15¢ in-person; 2.9% + 30¢ online/invoices). Keyed remains 3.5% + 15¢ across those plans. Square states there is no chargeback fee and no early-termination fee. Custom processing is offered above $250K annual sales. Instant transfers and hardware (beyond the free magstripe reader) are extra.
Hypothetical cost example
Cost per booked job, not cost per raw lead.
Square’s processing cost can be estimated from published rates once you know card-present vs online vs keyed mix. Gateway-only Authorize.net cannot be finished without the processor’s rate. All-in-One can be estimated from Authorize.net’s published 2.9% + 30¢ plus $25/month.
Replace every figure with your statements. Mix, average ticket, keyed share, refunds, and (on Square) plan tier change the result. This is not a quote.
Example: $20,000 / month and 200 transactions (illustrative)
Square Free, all in-person: 2.6% × $20,000 = $520, plus 15¢ × 200 = $30, total about $550. Square Free, all online/invoices: 3.3% × $20,000 = $660, plus 30¢ × 200 = $60, total about $720. A 50/50 mix of those two methods is about $635. Authorize.net All-in-One on the same $20,000 / 200 transactions: $25 + 2.9% × $20,000 ($580) + 30¢ × 200 ($60) = about $665. Gateway Only is $25 + 10¢ × 200 ($20) + about $2 in daily batch fees—plus processor pricing you must add from your merchant-account statement. If that processor is 2.5% + 10¢, Gateway Only all-in is a different number than All-in-One; do not use 2.9% + 30¢ as a stand-in for Gateway Only.
Pros and cons
Strengths and trade-offs.
Authorize.net
Pros
- Gateway can connect to an existing merchant account instead of replacing it
- All-in-One publishes a complete rate if you do not already have an acquirer
- Mature virtual terminal, invoicing, ARB/CIM, and shopping-cart integrations
- Processor/acquirer remains negotiable on Gateway Only (including interchange-plus via your MSP, when they offer it)
Cons
- Gateway Only total cost is two bills; easy to quote only the $25 + 10¢ layer
- Not a Square-style POS/hardware store; in-person is possible but not the same ecosystem
- Implementation quality depends on your developer, cart, or partner
- Cannot use Square as the processor behind the gateway
Square
Pros
- Published rates you can model without waiting for an ISO quote
- POS, invoices, hardware, and processing in one account
- No monthly fee on Square Free; no Square chargeback fee or gateway ETF
- Fast path for field collections and small counters
Cons
- You do not bring your own merchant account to Square
- Online/invoice and keyed rates are higher than tap/dip/swipe
- Saved Square payment methods do not become Authorize.net CIM tokens if you leave
- Account underwriting and holds follow Square’s model—not your bank’s merchant-account contract
Best for
Which tool fits your situation.
Contractor taking cards in the field
Square is usually the shorter path: a reader or Tap to Pay, job-named receipts, and invoices when the homeowner is not on site. Authorize.net can take in-person payments, but you still need a merchant account and compatible hardware—and you do not get Square’s POS/hardware catalog. Choose Authorize.net here mainly if the office already bills through that gateway and field collections must hit the same merchant account.
Office invoices, phone orders, and card-not-present
Both can invoice and key cards. Square Invoices price at the online/invoice rate on your plan (3.3% + 30¢ on Free). Authorize.net digital invoices settle through the same gateway as the rest of the account (All-in-One at 2.9% + 30¢, or Gateway Only plus processor). If the office already lives in Authorize.net’s virtual terminal, switching to Square is a workflow change, not a feature checkbox.
Retail / service hybrid or existing industry POS
If you already run a trade-specific POS that speaks Authorize.net, keep the gateway unless you are ready to replace that POS. If you have no POS yet and need a counter plus trucks, Square is the integrated option; Clover is the usual counter alternative if Square is not the right hardware family.
Existing merchant account
Gateway Only is the Authorize.net product designed for this. Square will not sit in front of that merchant account as a bolt-on gateway. Keeping the merchant account means Authorize.net (or another standalone gateway), not Square processing.
Can you use Authorize.net and Square together?
Not as a normal integrated pairing. Square’s product team has stated Square does not connect to Authorize.net because they offer the same class of service. You cannot use a Square “merchant account” as the processor behind Authorize.net. Two locations or two legal entities could each use a different product, but deposits, disputes, saved cards, and accounting stay separate. If you already run both, tag every payment in bookkeeping; do not assume they share a customer vault.
Switching or migrating
Saved cards, subscriptions, and CIM/ARB profiles on Authorize.net do not move to Square automatically; Square card-on-file does not become Authorize.net tokens. Recurring billing usually means collecting new authorizations. Hardware is not interchangeable. Accounting integrations and payout reports have to be rebuilt. Gateway Only merchants may be able to keep the merchant account and change gateways—or keep Authorize.net and change processors—subject to those vendors’ contracts. Square processing is the Square account; leaving Square is a new processor relationship, not a MID you take to another gateway. BeltStack does not migrate card data; involve your developer and the processors’ documented export/import paths.
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