The mode of cross-border e-commerce payment and settlement of Lianlian Pay currently mainly includes: helping merchants to collect and withdraw money from Amazon stores and withdraw money from PayPal accounts.
1) Helping merchants to collect and withdraw money from Amazon stores
Lianlian Pay’s cross-border payment is a product specially created by Lianlian Pay for Chinese cross-border e-commerce sellers. Lianlian Pay’s cross-border payment supports five major sites including Amazon North America, Japan and Europe, and connects the four major currencies of US dollar, Japanese yen, euro and British pound at one time, which can provide convenient international payment services for cross-border e-commerce sellers. No matter which Amazon site the seller sells products on, Lianlian Pay’s cross-border payment can provide efficient and safe payment services, truly helping sellers to “sell globally”.
When opening a store on Amazon, it is impossible for overseas customers to directly transfer money to the domestic bank account of domestic merchants. Domestic merchants must use overseas bank accounts to collect money, so there are three ways to collect cross-border payments.
The first is that domestic sellers go to overseas to set up bank accounts and use this account to collect money. The general formal practice is to first establish a company in China, similar to the parent company, and then establish a subsidiary company abroad. For example, the company in China is called Company A, and the company abroad is called Company B. If Company B is used to do Amazon, the money will be directly transferred to Company B, and then Company B will transfer the funds in the form of traditional trade, thus forming a closed loop.
The second is an offshore account, which is also the practice of many traditional trading companies. These companies have some offshore accounts abroad, and these offshore accounts can also receive money from Amazon, but Amazon will charge a 3.5% currency loss fee. For example, if you use a US account to receive money from Europe, Amazon will charge a 3.5% currency loss fee, which is a very high proportion. Now more than 90% of sellers open overseas bank accounts through third-party payment. This method has the following advantages: first, it is easy to operate; second, the cost will not be particularly high; third, it does not require so many procedures, and the collection speed is very fast, which may arrive in one or two days.
The third is to use a cross-border collection service similar to Lianlian Pay. LianLian Pay’s Amazon withdrawal fee is 0.7%. All currencies can be collected on all Amazon sites, including US dollars, euros, pounds, and yen. The withdrawal speed is very fast, which can provide professional, flexible, efficient and convenient international cross-border payment services for cross-border e-commerce sellers.
2) PayPal account withdrawal
LianLian Pay has launched an optional RMB withdrawal service through cooperation with PayPal. Merchants can withdraw the balance in their accounts in the form of RMB, which greatly reduces the cash flow pressure of merchants and improves the convenience of transactions. PayPal account withdrawal has the following characteristics.
(1) There is no foreign exchange limit of US$50,000 per person per year.
(2) This service is only available to PayPal accounts registered by Chinese citizens and Chinese companies.
(3) The exchange rate is based on the spot exchange rate of US dollars of the Bank of China on the same day.
(4) The handling fee for this RMB withdrawal service is only 1.2%, and the arrival time is 3 to 4 days. There are no other fees.
(5) The minimum withdrawal amount is US$150, and the maximum single withdrawal amount is US$10,000; the maximum number of withdrawals per day is US$30,000.
You can consider using a PayPal account to withdraw cash in the following two situations.
(1) You often need to withdraw small amounts. For example, if you receive US$500 in a transaction and want to withdraw it, the wire transfer fee is US$35 per transaction, plus a bank transfer fee of US$8 to US$12, and the amount you receive is about US$450. After withdrawing in RMB, the fee is US$6 (500×1.2%), and there are no other fees.
(2) The personal foreign exchange settlement limit of US$50,000 is used up. Foreign exchange control sets a foreign exchange settlement limit of US$50,000 per person per year, while PayPal RMB withdrawals do not have a foreign exchange limit of US$50,000.