molukaiQ: Fee Comparison? Chargebacks?
It seems that Creem has a higher fee rate than competitors, such as the much more mature payment processor Stripe (3.9%+0.40 versus 2.9%+0.30, respectively). Why would I want to go with Creem if Stripe is a more mature platform, a more trusted platform, and cheaper?
Separately, I can't find any information about chargebacks. Going back to the aforementioned Stripe, one thing I hate about it is that they have very punishing chargeback fees. Do you charge fees for chargebacks/disputes? If so, what is it?
Gabriel_Creem
Apr 2, 2025A: Hey, thanks for the question! 🌟😊
We know chargebacks can be a headache, but don’t worry—we’ve got you covered!
We’ve integrated with and use several advanced providers to build a robust fraud protection engine on your behalf, so you don’t ever have to worry about it! 🚀
For instance, in many cases, we receive alerts from card networks indicating that a dispute was created regarding one of your transactions. When that happens, we can proactively issue a refund to avoid the chargeback altogether, keeping your account healthy and safe.
On top of that, we use advanced tools like IP fingerprinting, BIN mapping, velocity checks, and behavioral pattern analysis as part of our ongoing monitoring program. These help us catch potential issues early and reduce the risk of disputes.
In the case that a chargeback does occur, we charge a $25 fee. This covers our due diligence, including the resolution process, any fees from our providers, and costs related to other fraud protection tools we employ on your behalf.
Our goal is to make sure you can focus on your business while we handle the complexities of chargeback management!
I totally get where you’re coming from—it’s important to understand how we differ from Stripe. While a lot of people like to compare us to Stripe because of our payment processing capabilities, it’s essential to note that Stripe is not a Merchant of Record (MoR).
That’s why you won’t find a direct comparison between us and Stripe on our pricing page (you can check it here: https://creem.io/pricing).
When considering international transactions and subscriptions —we often end up being cheaper than Stripe, with the added benefit of being a Merchant of Record.
What’s the difference?
As an MoR, Creem takes on the legal liability of sales, including collecting, registering, and remitting international taxes. Instead of having to deal with international compliance yourself, you’ll receive one or two invoices per month from Creem, and that’s it. This way, you don’t have to worry about tax registration or compliance in every country your customers are from. You can read more about the Merchant of Record model here:
https://docs.creem.io/finance/merchant-of-record
So, in short, the value we bring is not just the payment processing—it’s the peace of mind of handling complex global compliance for you, and the innovative features we are developing around payments to help you streamline your operations and increase conversion.