What is Payment Method? Payment Method Review, Features

Simply put, it is a way to collect money, generally including cash, transfer check, bank draft, remittance, acceptance bill, commercial acceptance bill, letter of credit, etc.

Classification

Intra-city settlements can be made by means of checks, promissory notes, commercial bills, bank acceptance bills, etc.

There are other methods of payment in different places, such as commercial bills, telegraphic transfers, and bank acceptance bills.

Mainstream cross-border e-commerce payment methods

Amazon: P card (Payonner), WF card (World First), CD card (Currencies

Direct), PingPing Finance, DTAS, Skyee, Global Express, Hong Kong bank account, US bank account.

AliExpress: credit cards (divided into RMB channel and USD channel), WebMoney (WM for short), TT remittance, Western Union, Qiwi wallet, Brazilian Boleto, SOFORT Banking, etc.

ebay: paypal.

Wish: paypal, pingpong, p card, EasyPay, Bill.com, and UMP.

Lazada: Payoneer, World First.

DHgate: Credit Card, Bank Transfer (GC bank transfer or HSBC bank transfer), Western Union, MoneyGram.

Newegg: World First corporate account, PayPal personal or corporate account, Payoneer public account, corporate public account (must be able to receive US dollars), Pingpong corporate account.

Walmart: p card, Bank of America card.

Advantages of mainstream payment methods

1. Amazon

There are five main ways to collect payments on the Amazon platform.

1. Payoneer

Commonly known as P card, it is currently the only official partner of Amazon payment collection. It has accounts in three currencies: US dollars, euros and pounds. All currencies support multi-platform stores. Both individuals and companies can apply. In addition, Payoneer now has two types of accounts: card accounts and non-card accounts. The management fee for card accounts is US$29.95 per year, while non-card accounts do not require an annual fee. Payoneer transfers have no exchange loss, and withdrawals to China take about 1-2 working days, with no restrictions on foreign exchange settlement.

Fees:

Deposit: Payoneer charges a 1% fee for deposits in US dollars, and free of charge for cumulative deposits of US$200,000; there is no fee for deposits in euros and pounds, and deposits are free.

Cash withdrawal: RMB settlement and foreign currency wire transfers are charged a 1%-2% handling fee, and the funds will be credited to the account within 1-2 days. The withdrawal fee for new users is 2%, which decreases as the accumulated amount of funds deposited increases, and can be reduced to a minimum of 1% (accumulated deposits of US$3 million). Cardholders can also choose to use Payoneer cards to withdraw cash or make purchases at ATMs, but MasterCard International will charge exchange losses. It is recommended to use this card when you are in urgent need of funds or traveling abroad.

2. Worldfirst

Commonly known as WF account, it is a top international remittance company registered in the UK, with offices in the UK, the US, Australia, Singapore, and Hong Kong, providing 24-hour Chinese telephone service. Both individuals and companies can apply. When withdrawing cash, WF will automatically transfer it to the legal person's private account or public bank card bound to the seller.

Fees:

No annual fee, no withdrawal limit.

US accounts: One-time transfers below $1,000 are charged $30 per transaction; transfers above $1,000 are free of charge

UK accounts: 10 GBP per transaction for one-time transfers below 500 GBP; no handling fee for transfers above 500 GBP

Euro account: 10 Euro per transaction for one-time transfers below 500 Euro; no handling fee for transfers above 500 Euro

CAD account: 30 CAD per transaction for one-time transfers below 1,000 CAD; no handling fee for transfers above 1,000 CAD

Exchange loss: The exchange loss for each transfer is around 1%-2.5%. The larger the transfer amount, the more favorable the offer.

3. Bank of America Card

To apply for a US bank card, you need to register a US company first. The international transfer fee is US$45, and there is no exchange loss. However, if the amount is too large, you may face supervision from US banking institutions.

4. Currencie Direct

CD Card is a currency exchange company under AZIBO, a top European financial management group. It has bank accounts in pounds, euros and dollars. Both individuals and companies can apply. If the account has not been used for a long time or the specified transaction amount has not been reached, additional fees will be charged.

Fees:

After the CD account is opened, there is no need to pay monthly or annual fees. The European collection has a greater advantage, and the exchange loss is around 1%-1.5%. There is no limit on withdrawals, and sellers can bind domestic bank cards in the background to withdraw money.

5. Hong Kong account transfer and foreign exchange settlement

If you use a local bank in Hong Kong to receive payment, you can only receive Hong Kong dollars, so there will be two exchange losses when converting to RMB. Amazon's backend currency conversion generally deducts 3%-3.5% exchange rate loss, so it is not recommended to use it.

2. AliExpress

On the AliExpress platform, sellers need to set up two payment accounts: a RMB payment account and a USD payment account.

1. When the buyer pays by credit card, the funds will enter the international Alipay account in the form of US dollars or RMB, depending on the international payment channel, and then be withdrawn in US dollars or RMB respectively.

2. When the buyer pays by T/T bank transfer, the funds will be deposited into the customer's international Alipay account in the form of US dollars. In other words, if the buyer uses different payment methods, the payment will be deposited into the seller's different receiving accounts.

It should be noted that AliExpress can withdraw cash by binding Alipay and bank cards. There is no handling fee for withdrawing RMB to Alipay, but a handling fee of US$15 is charged for withdrawing US dollars. In addition, the bank card must be an account that supports withdrawing US dollars before it can be bound.

3. eBay

Currently, the main payment method on eBay is PayPal, which is divided into two types: wire transfer and check withdrawal.

1. Withdrawal by wire transfer

Wire transfer withdrawals are fast and highly secure. For wire transfer withdrawals from PayPal, mainland users can choose to withdraw to a bank account in mainland China, a bank account in Hong Kong, or a bank account in the United States. Hong Kong users can choose to withdraw to a bank account in Hong Kong or a bank account in the United States. Taiwan users can choose to withdraw to a bank account in Taiwan or a bank account in the United States.

The wire transfer withdrawal fee will include withdrawal fee, bank charges (please consult each bank for details), refund fee (if the funds arrive at the bank and the bank refuses to deposit the funds, you are advised to consult the bank for the specific reasons, then you will need to pay a certain fee), and different currencies have different minimum withdrawal amounts.

2. Check withdrawal

Request a check from PayPal through the "Other Options" option. Check withdrawals are cheaper, but please consider the long waiting period and the risk of the mail being lost in the mail.

The fees for check withdrawals are divided into two parts: withdrawal fees and return fees. The relevant fees and minimum withdrawal amounts for each currency are also different.

4. Wish

Currently, there are three main ways to collect payments on the Wish platform.

1. Payoneer

In 2014, Wish reached a cooperation with Payoneer. Wish's loan policy has been adjusted several times in the past year, but once the loan is released, the Payoneer account can receive it within two hours, and there is no deposit fee. Withdrawal to China takes 1-2 working days, and there is no restriction on foreign exchange settlement; the withdrawal fee is 1-2%, and it will be automatically reduced according to the accumulated deposit amount in Payoneer.

2. PayEco

After breaking up with PayPal in 2014, Wish has also been actively looking for other partners, and Yilian Payment is one of them. Yilian Payment directly uses RMB to settle payments, and the funds can be directly transferred to domestic accounts. Therefore, you do not need a PayEco account to use Yilian Payment, but you need a Chinese bank account. It takes 5-10 working days to be credited to the account, depending on the bank's processing procedures. Since May 2015, the handling fee of Yilian Payment has been reduced to 1%.

3. Bill.com

If the seller chooses to use Bill.com, they must enter their name, company name, postal address, email, mobile phone number and other information. Bill.com will send an email reminder when the Wish platform receives the payment. Bill.com can provide both electronic transfers and checks. However, it should be noted that Bill's electronic transfer service is limited to individuals in the United States. The general ACH processing time is 3-5 business days, and a fee of US$0.49 is charged per transaction; US or international paper checks take 5-21 business days and a fee of US$1.49 is charged per transaction.

It should be noted that the platform requires sellers to enter the same bank account number as the name on the platform identity authentication when setting up a RMB account. Some sellers whose names contain traditional Chinese characters need to confirm with the bank where they opened the account how the bank's account name is saved. Because most bank systems do not support account names in traditional Chinese characters, if the platform's identity authentication name is in traditional Chinese characters, but the bank's is in simplified Chinese, it will also cause the seller to receive a message saying "the account name does not match the account number" when withdrawing cash, resulting in a withdrawal failure.

5. Lazada

Payoneer is currently the only payment channel designated by Lazada for domestic e-commerce. You only need one Payoneer account to bind all Lazada sites for payment. Lazada pays once a week, and the payment can be credited to the Payoneer account within two hours, with no deposit fee.

In terms of cash withdrawal, RMB settlement and foreign currency wire transfers are charged a 1%-2% handling fee, which decreases as the accumulated amount of deposits increases, and can be reduced to a minimum of 1% (accumulated deposits of US$3 million). Regardless of the size of the seller, the withdrawal can be credited to the bank in 1-2 days.

6. Good Things Network

The main payment method of Goodies.com is GoodiesPay.

GoodiesPay cross-border payment is the next key product deployed by Goodies.com, and it is also an ambitious product launched by Goodies.com for the peak season at the end of 2018.

GoodiesPay has created a one-stop cross-border payment service and has launched a cross-border payment solution this year, supporting multiple platforms and sites such as Amazon and eBay, and mainstream settlement currencies such as the U.S. dollar, euro, pound sterling, Australian dollar, Hong Kong dollar, and Japanese yen. It offers customized settlement methods, fast payment, and low fees, including 0 account opening fees, 0 annual fees, and no deposit requirements. The fees are as low as 0.4%~0.6%. Old customers can enjoy lower fees, which speeds up the capital turnover rate of cross-border e-commerce companies and sellers.