What are the ways for individuals to receive cross-border payments? Introduction to payment methods

You can do cross-border e-commerce business as an individual or as a company. If you don't have your own brand company, you can only enter the platform as an individual merchant. What are the ways for that person to receive cross-border payments?

1. PayPal payment

PayPal is currently the world's largest online payment company. It has more than 190 million active users in 203 countries and regions around the world. Cross-border transactions account for 21% of the total transaction volume, allowing funds to be transferred between users who use email to identify themselves.

Pros and Cons:

a. For new customers, if they do not trust the company, purchasing samples can be recommended. PAYPAL's policy is to protect buyers. However, quality inspection must be carried out before shipment to avoid unnecessary disputes.

b. For sample orders, the amount is relatively small and the handling fee is relatively low.

c. For merchants who do not frequently use PayPal, the withdrawal fee is too high

Handling fee: including the collection fee rate (adjusted according to the collection amount) + withdrawal fee of 35 USD

How to withdraw cash: Bind a recommended domestic debit card and choose to transfer the money to a mainland bank. It is expected to arrive in 3-7 working days. The annual limit for each person is 50,000 yuan. If the limit is exceeded, you can settle the foreign exchange through a third-party institution without limit.

Reminder: PayPal's buyer protection policy reminds us that the sample orders sent out must be tested before they are sent out. Product disputes may result in the loss of both money and goods;

2. Western Union Receipt

Main usage scenarios: offline payment collection, suitable for small amount of foreign exchange collection

Advantages: Zero risk, zero handling fee. Directly transfer money to the provided Western Union account, and the handling fee is borne by the buyer. Zero risk for the seller, first collect the payment and then ship. And the payment will be received immediately after the customer pays, and the timeliness is very fast.

Disadvantages: It is troublesome for customers to pay, and the handling fee is high. Customers need to go to the bank to queue up, and they have sent pictures of the number in the bank several times; the bank cards for receiving remittance are limited. I have tried Postal Savings Bank, Bank of China, and Everbright Bank, and they can all receive remittance through Western Union.

3. Hong Kong Offshore Company Bank Account

Advantages: There is no limit on the amount of wire transfers received, and there is no limit on the annual personal foreign exchange settlement limit of US$50,000. Suitable for receiving large remittances.

Disadvantages: The threshold for opening bank accounts for offshore companies in Hong Kong is getting higher and higher. Since 2017, HSBC, as a leading bank in Hong Kong, has actively responded to the CRS tax exchange policy, opening the prelude to anti-money laundering and capital outflow policies. Banks have also tightened their account opening policies, shutting out many small and medium-sized enterprises.

In general, personal cross-border payment methods include PayPal, Western Union, Hong Kong offshore company bank account, Payssion and WorldFirst.