Cross-border e-commerce payment and settlement financial risks and response strategies
The financial risks of cross-border e-commerce payment and settlement involve many aspects, including but not limited to exchange rate changes, foreign exchange controls, payment permissions, foreign exchange settlement costs, chargeback fraud and liquidity risks.
Challenges caused by exchange rate changes
The impact of exchange rate fluctuations on cross-border e-commerce is a double-edged sword: Although the depreciation of the RMB may reduce the cost-effectiveness of imported goods and lead to a decline in sales on Tmall International, NetEase Kaola Overseas Shopping, JD Global Shopping and other platforms, it can increase The profit margins of export cross-border e-commerce make it more attractive. However, small and medium-sized enterprises face not only price competition but also dual pressures from exchange rate fluctuations. If the company’s net profit margin is only 5% to 10%, exchange rate fluctuations may erode the annual profit or even lead to losses, so exchange rate risk management is crucial. .
The impact of foreign exchange controls
my country implements annual limit management on foreign exchange, and the annual limit on individual foreign exchange settlement and sales is US$50,000. In cross-border e-commerce business, third-party payment institutions usually only have limited transaction information, making it difficult to implement strict personal annual foreign exchange settlement and sales policies. In addition, how to define the behavior of split foreign exchange settlement and sales is also a big problem. Nonetheless, regulatory agencies are gradually increasing their attention to this area and may adjust relevant policies in the future.
Uncertainty about payment license
Although some companies have obtained domestic and foreign payment licenses, these licenses may face re-evaluation as the industry develops and the international situation changes. The uncertainty of payment licenses requires companies to remain vigilant and adjust strategies to adapt to the new environment.
The cost of foreign exchange settlement is high
The cost of foreign exchange settlement includes not only exchange rate losses, but also settlement platform fees and time costs. Although some companies such as Lianlian Pay and PingPong provide efficient services, the industry average is still more than 1%, which puts pressure on corporate profits.
Chargeback Fraud Threat
Compared with traditional foreign trade, cross-border e-commerce is more likely to encounter chargeback fraud. According to international practice, cardholders can make a chargeback request within 180 days. Malicious chargeback will harm the interests of the seller.
Liquidity risk
Cross-border payment settlement cycle is long, usually 7 to 10 days, which may cause difficulties in corporate capital turnover. To mitigate liquidity risks, companies can choose to join early collection plans or seek credit loan support provided by cross-border platforms.
To sum up, when cross-border e-commerce companies face the complex and ever-changing financial environment, they need to take a series of measures to effectively manage the above various risks. This includes but is not limited to closely monitoring exchange rate trends, making rational use of insurance products, and exploring legal and compliant capital transfer channels. Through these methods, companies can better cope with challenges and ensure continued and healthy business development.