Money transactions are the basis of cross-border e-commerce, but unlike domestic payments, cross-border e-commerce is a transaction between buyers and sellers between countries, so the payment process is more complicated. At present, there are many payment methods for cross-border e-commerce sellers. Each payment tool has different advantages, convenience and timeliness. Choosing an appropriate method among many payment tools is the first condition for doing a good job in cross-border e-commerce.

In order for the majority of cross-border e-commerce buddies to carry out their work more efficiently, Yue Xiaomi has collected and sorted out several of the most commonly used cross-border payment methods by foreign trade sellers, and briefly analyzed their advantages and disadvantages.

1. Telegraphic transfer (T/T Telegraphic transfer)

Telegraphic transfer is the payment method most commonly used by sellers in actual foreign trade. Large-amount transactions basically use wire transfer. Of course, high Wire transfer is also a good payment method for transactions involving US$1,000 and less than US$10,000.

Bank handling fees for wire transfers are generally divided into three parts. The first part is the handling fee generated by the payer's paying bank, which can be paid separately by the payee or deducted from the payment amount; the second part is the handling fee incurred by the intermediary bank. The handling fee is generally deducted from the remittance amount; the third part is the handling fee of the payee's receiving bank, which is deducted from the remittance amount.

The payment time that everyone is most concerned about is currently generally the time after the bill is received and the money has been confirmed by the finance department, and then other subsequent operations, such as delivery, can be carried out. The wire transfer time varies greatly according to the different bank transfer routes, ranging from three working days to one week. I recommend commercial banks, which are relatively fast.

2. Western Union

Western Union is the abbreviation of International Remittance Company (Western Union). It is the world's leading express remittance company. It has a history of 150 years and has The world's largest and most advanced electronic remittance financial network, with agent outlets in nearly 200 countries and regions around the world.

At present, many banks such as Agricultural Bank of China, China Everbright Bank, Postal Savings Bank of China, China Construction Bank, Shanghai Pudong Development Bank, Harbin Bank, Fujian Straits Bank, Yantai Bank, Wenzhou Bank, etc. are Western Union China partners. partner. Paying this way takes about 15 minutes.

The specific steps to use Western Union remittance are as follows:

The seller only needs to tell the customer his contact information (name, address, phone number), no bank account number is required. After the customer remits money, the following information will be given to the seller:

1.sender: guest name

2.Receiver: recipient name

3.MTCN: a string Number (commonly known as monitoring number)

Before remittance: The seller provides the customer with the name (Pinyin) on his ID card,

1. Firstname: the seller’s name; 2. Last name: The seller’s last name.

The information provided by the customer to the seller is:

1. The name of the remitter, First name, last name.

2. The country of the remitter

3. The currency and amount of the remittance

4. MTCN, commonly known as the monitoring number.

With this information, the seller can take the ID card to the Agricultural Bank of China or the post office, or a bank that can handle Western Union business to withdraw money. (Note: ID card is required.)

Regarding fees, Western Union is responsible for the handling fees of the payer. Payment fees vary in different countries. It is best for customers to consult the local Western Union payment bank.

At present, Western Union is relatively well accepted among European and American customers, and it is generally more convenient for small-amount US dollar remittances.

3. MoneyGram

MoneyGram is one of the international remittance methods similar to Western Union. Its business model is the same as Western Union. It currently ranks second among similar businesses in the world.

Since remittances do not go through bank channels but through MoneyGram remittance channels, there are many cooperative banks in the country. The more common agent banks include ICBC, CITIC, Communications, and Bank of China.

The specific operations are as follows:

First prepare the following information:

1) The remitter’s last name (last name) and first name (first name)

3) The remittance country

4) The 8-digit monitoring number

5) Bring it with you You can go to the agent bank with your ID card to handle withdrawals.

MoneyGram’s handling fees are cheaper than Western Union. For details, you can contact the customer service hotlines of the above banks. Of course, there are also some non-bank agencies. Application is for individuals only and requires identification documents. MoneyGram's global remittance business between individuals can be handled at the MoneyGram counter of a bank. Industrial and Commercial Bank of China, Bank of Communications, and CITIC Bank all have MoneyGram services.

4. PayPal

is currently the first choice for small-amount payments. PayPal is an international third-party online payment. Online payment is convenient and fast. In addition, it can relieve buyers' worries about not receiving the goods after payment. The usage rate of foreign buyers accounts for more than 80%. It has wide coverage in Europe and the United States. It only requires an email address. Registration and account opening are free. As a third-party tool, like Alipay, PayPal buyers can complain to PayPal if they have any problems.

Compared with other payment methods, the advantages of PayPal are:

First: Fund security.

Second: Fast, basically the same as domestic Alipay. After the buyer pays, the PayPal balance is immediately displayed.

Third: Convenience, you can use various tools to manage transactions and improve efficiency.

Fourth: Global market acceptance, currently used in 190 markets and 6 currencies. It is the most mainstream payment method among small-amount cross-border trade tools.

There is another issue about PayPal that everyone needs to pay attention to, which is the difference between PayPal and PayPal. In fact, similar to the domestic and international versions of Alipay, PayPal International Station allows sending and accepting payments to 55 countries and regions. PayPal is its Chinese version and can only send and accept payments to Chinese users. It is free for both buyers and sellers to use. At present, the industry generally believes that PayPal is still the first choice for small-amount payments.

5. Alipay (International Version)

The international version of Alipay (ESCROWSERVICE) is a new online payment method for international buyers and sellers. Because it is too new, the current international market acceptance is not high, but its operation principle is similar to that of domestic Alipay. Logistics operation and communication are relatively convenient, and it has great market prospects.

6. Credit card collection

In fact, in Europe and the United States, the mainstream payment method is credit card. In Europe and the United States, credit cards are linked to personal credit information. Therefore, credit card is also a very safe payment method. Now cross-border e-commerce platforms, through cooperation with VISA and MASTERCARD, can pay by credit card.

Risk control of international credit card payments. The core risks of credit card payments are customer chargebacks and a small number of credit card frauds. For example, if a consumer cancels or regrets an order, sellers often suffer a lot of losses due to other expenses such as early logistics and other expenses involved in international small-scale trade. And now many mainstream cross-border e-commerce platforms also tend to be buyers. Generally, payment companies provide various relatively secure verification and encryption measures when providing payment services, such as sharing information with the card organization's black card library. If a black card or stolen card is encountered, the system will Refuse to pay. causing the order to fail.

7. Hong Kong offshore company collection

There are several differences between Hong Kong accounts and offshore accounts:

1. Hong Kong accounts have no foreign exchange controls and can be directly For counter operations, cash cannot be deposited into closed accounts at present.

2. In terms of bank fees, local banks in Hong Kong charge less.

3. The account has complete functions and is more suitable for international payments.

4. Account opening is fast.

Currently, this type of payment method is divided into the following three categories:

1. Hong Kong account: HSBC is the first choice, with many branches, good service, high credibility, and fast payment into the account , online banking is free to use, and there are no requirements for opening an account. When you open an account in Hong Kong, you can get an account and online banking on the same day.

2. Offshore accounts (domestic capital): Pudong Development Bank, Shenzhen Development Bank, Bank of Communications, China Merchants Bank, there are no requirements for opening an account, the handling fee is low, but the collection speed is slow, and the service is not as good as that of Hong Kong banks.

3. Offshore accounts (foreign capital): Mainland foreign banks, HSBC, Standard Chartered, East Asia, etc. all have foreign debt quota limits, so the requirements for opening an account are high and the transfer fees are high. If there is online banking, you can only check it, but not Transfer money.

The method of choosing an offshore account is very simple. There are many agency companies in Ningbo, Guangzhou and Shenzhen. You can inquire directly with them and spend a very small amount of money to provide one-stop service.

8. Introduction to other non-mainstream payment tools

In fact, these payment tools are generally not recommended for everyone to use, because the acceptance is not high, and because you are not familiar with the payment security and are not sure about it, But as a foreign trade person, I can have a certain understanding.

CLICKANDBUY (online payments and e-wallets), PAYSAFECARD, WEBMONEY, CASHU, LIQPAY, QIWIWALLET. These payment methods are available in Russia, the Middle East, North Africa and other countries.

Summary

In fact, the core point of small-amount cross-border payments is security. In addition, according to the seller's own habits, they generally choose mainstream payment methods, or they can also choose conventional wire transfer methods. When it comes to things like money, don't be afraid of trouble, and be sure to choose a reliable, familiar and safe payment method.

/workflow/1443680513