The previous section compared seven commonly used payment methods for cross-border e-commerce. For buyers and sellers, paying less handling fees is of course a better choice. However, when considering the payment fees, we have to consider the payment risks. So which of these payment methods has the highest payment risk and which one has the best security?
Credit cards are a payment method that poses risks to both buyers and sellers. For buyers, Europe and the United States are more accustomed to using credit cards for consumption, and are often accustomed to non-password payment. Consumers only need to enter the card number, expiration date and CVV2 to complete the payment process, which provides an extremely convenient opportunity for criminals to commit fraud. Now international credit cards have enabled the chargeback function, which is also a potential risk for merchants.
PayPal and Alipay International are very secure, especially because they both adopt the principle of protecting consumers. Buyers can complain through the platform if they are dissatisfied with the goods, so merchants cannot receive the payment, so it is very beneficial to consumers. In cross-border e-commerce transactions, there will also be some malicious consumers, and it is inevitable that the interests of merchants themselves will be damaged.
Both wire transfer and Western Union payment methods adopt the method of shipping after receiving the payment. This transaction method is extremely beneficial to the seller, but there are certain risks for the buyer. Many buyers are worried that the seller will not ship the goods after the payment is received, which often affects the completion rate of the transaction amount. However, during the transaction, the buyer, bank and seller need to confirm and communicate the transaction information. Compared with the risks of credit card fraud and reverse brushing, the risk of this transaction is relatively small.
When the remitter uses MoneyGram to handle the remittance business, he will set a payment password and then inform the payee of this password. The payee will go to the bank to withdraw money with the password and relevant identity documents. Generally, it is not easy to have problems and the safety factor is high.
From the above analysis, it can be seen that the risks of cross-border e-commerce transaction payment methods are different. Not only do different payment methods have different risks, but also the risks of buyers and sellers under the same payment method are different. Buyers and sellers must carefully identify when choosing a payment method and choose the one that is safest for them to avoid losses during the transaction.