Share the advantages and disadvantages of cross-border e-commerce payment (advantages and disadvantages of cross-border e-commerce payment)

If it is a domestic e-commerce platform, payment methods include Alipay and Caitong. And don't worry about handling fees, safety and immediacy. However, if you are doing cross-border e-commerce, it will involve both domestic and overseas issues, and the exchange rate collection method will become less simple. Do you need to consider different currencies, different payment methods, exchange rates and handling fees?

1. Export cross-border e-commerce payment chain

For the export of cross-border e-commerce, the payment performance is the foreign card acquiring business, that is, domestic merchants sell goods to overseas consumers through the foreign trade platform, and after the consumers pay, the payment institution collects foreign currency for domestic merchants and acts as an agent to settle foreign exchange.

As a payment channel, the third-party payment platform can cooperate with overseas banks to help domestic businesses collect foreign exchange, and consumers and businesses can directly complete cross-border payment online.

Many cross-border e-commerce websites choose to cooperate with overseas banks to open ports that accept credit card payment from overseas banks, such as Visa and MasterCard, so that users can pay directly by credit card or transfer money with outlets online.

Because cross-border e-commerce involves different factors such as currency, language and financial policy, third-party payment platforms and banks generally cooperate with each other, but at the same time there is competition between third-party payment platforms and banks, because with third-party payment platforms, consumers can directly skip the bank for payment.

This special relationship between the third-party payment platform and the bank, on the one hand, can make cross-border payment faster, on the other hand, the competition between the two will inevitably lead to the reduction of payment costs, and ultimately let users profit from it.

2. Grey payment chain

Generally speaking, the payment of cross-border e-commerce can be done through a third party or a bank, which seems to be no problem. In fact, due to the particularity of cross-border e-commerce, there are many inconveniences in this normal process, so there is still a gray payment chain in cross-border e-commerce.

Different from the mainstream foreign trade forms, the goods exported to cross-border e-commerce are delivered by express parcel rather than exported by sea, which are not included in customs supervision statistics and cannot be settled normally by providing customs declaration forms. As a result, a large amount of foreign exchange is stranded in overseas banks or third-party platforms, and there are many inconveniences in legal settlement channels.

3. Analysis of the advantages and disadvantages of cross-border electronic commerce payment.

1. PayPal. The third-party payment platform under Yi Bei, a cross-border e-commerce platform, has a high international reputation and is especially trusted by American users. Advantages: It has a wide range of users around the world, and the transaction mode between accounts can be shared by buyers and sellers. Disadvantages: the platform is more inclined to the interests of buyers and unfavorable to sellers. In addition to the handling fee, each transaction also needs to pay the transaction processing fee. Accounts are easily frozen and the interests of businesses are damaged.

2. Credit card collection. There are five major credit card brands in the world. They are Visa, MastetrCard, AmericaExpress, jcb and Dinersclub, of which the first two are widely used. Advantages: The most common payment method in Europe and America has a large number of users. Disadvantages: the access method is troublesome, the deposit needs to be pre-stored, the cost is high, the payment amount is small, there are many black cards, and there is a risk of refusal to pay.

3. Wire transfer. T/T is a traditional B2B payment method, which is suitable for large transaction payment. The buyer and the seller shall bear the bank charges in their respective regions. Advantages: Pay first and then deliver, ensuring that the interests of merchants will not be lost. Hurry up and collect the money. It will be there in a few minutes. Disadvantages: payment before delivery, consumers are easy to distrust, and the customer base is small, which limits the trading volume of merchants.

4. Western Union remittance. Western Union Remittance is the abbreviation of Western Union International Remittance Company, which is an express remittance company. Western Union's handling fee is borne by the buyer, which is suitable for small payment. Advantages: For the seller, the handling fee is borne by the buyer, and the cash can be withdrawn before delivery, with high security and fast receipt. Disadvantages: Because it is risky for the buyer, it is not easy for the buyer to accept.

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