The main risk of PayPal payment is that the merchant account is frozen or cleared.

For example, a buyer from the United States chats with a merchant in China on the grounds of buying counterfeit goods at a high price to obtain his PayPal account, and then the related brands file a lawsuit in the United States with the chat record. Due to the high cost of litigation in the United States, most merchants did not choose to actively respond, but what followed was that PayPal accounts and funds were frozen or even cleared.

As the freezing and clearing of the merchant's account are both in accordance with the instructions of the local court, it is suggested that the merchant handle it through legal channels. However, China merchants should avoid legal risks in the course of business when registering to use the international cross-border e-commerce platform, and should actively respond to international lawsuits.

if the plaintiff fails to respond to the lawsuit within a certain period of time, he will apply to the court for a trial in absentia. If the judgment becomes effective, PayPal will execute the court order to transfer the funds in the account to the plaintiff's brand, and most of the money in the PayPal account may be cleared. Moreover, the cost of litigation is high. Even if the lawsuit can be won, the high litigation cost is unbearable for small businesses like him.

Extended information:

The risk of p>PayPal collection is that the account may be frozen or the account balance cleared. Because PayPal is a third party, after receiving the temporary restraining order from the court, it must freeze the corresponding account according to the requirements of the court. If it receives the court judgment, it will deduct the compensation according to the requirements and remit it to the designated account according to the requirements of the court.

In particular, the awareness of domestic small and medium-sized enterprises on intellectual property protection is still very weak, especially foreign trade enterprises. At the same time, they should improve their awareness of intellectual property protection, learn from relevant foreign laws, and learn to protect their rights and interests by law while ensuring that they are not illegal.

Cross-border e-commerce business is conducted through the Internet, and the Internet is borderless and cross-regional, which makes it difficult to safeguard the rights of disputes arising from cross-border e-commerce. Therefore, domestic merchants must ensure that they abide by the laws and regulations of relevant countries in their business processes and minimize the occurrence of disputes.

People's Daily Online-China's cross-border e-commerce encounters PayPal injury, and the funds in the account are facing zero clearing.