Question 1

Small and medium-sized enterprises do foreign trade, which kind of collection method has the lowest cost?

Accepted Answer

A local collection account is currently the lowest cost option. Local collection accounts offered by platforms such as XTransfer allow buyers to pay through local clearing networks using local currency. This not only eliminates the buyer's international wire transfer fee, but also avoids the intermediary bank deduction. After receiving the money, the seller enjoys a very competitive real-time exchange rate for sunshine settlement, and the comprehensive transaction cost is much lower than that of traditional offshore accounts or international wire transfers.

Question 2

What should you do if your offshore account is suddenly frozen?

Accepted Answer

Stop using the account immediately and contact the bank to find out why. Common processing procedures: 1. Confirm the reason for the freeze, usually suspected of money laundering or high-risk capital association; 2. Prepare self-certification materials, including complete trade contracts, commercial invoices, logistics bills of lading, customs declarations and mail records; 3. Submit true and compliant transaction link evidence to the bank's risk control department for appeal. In order to prevent business stagnation, it is recommended that a compliant third party collection account such as XTransfer be used on a daily basis.

Question 3

What if the amount on the customs declaration is inconsistent with the actual amount received?

Accepted Answer

There must be a reasonable commercial explanation and supplementary proof. Small differences are usually due to bank fee deductions or exchange rate fluctuations, which can be noted at the time of settlement. In the case of large discrepancies, it may be due to changes in freight and insurance premiums, or partial refunds/final deductions due to quality problems with the goods. Enterprises are required to provide supplementary agreements, claim emails or related expense vouchers confirmed by both parties, and submit explanations to the settlement agency to ensure a logical match between the flow of funds and the flow of goods.

Question 4

What is the difference between a letter of credit (L/C) and a wire transfer (T/T) collection?

Accepted Answer

Letter of credit is low risk but high cost, wire transfer cost is low but high risk. Letter of credit (L/C) by the bank to provide credit guarantee, as long as the documents match that is guaranteed payment, suitable for large or new customer transactions, but the examination of documents strict, cumbersome procedures and high issuing fees. Wire Transfer (T/T) is directly based on the buyer's commercial credit, simple to operate, low cost, but if the use of post-T/T (see bill of lading payment), the seller is at great risk of buyer refusal or delay.

Question 5

What are the serious risks of looking for an underground bank exchange?

Accepted Answer

Resolutely resist any form of underground money exchange. Three core risks: 1. The risk of capital freezing: the fund pool of underground banks is extremely dirty, which is easy to involve fraudulent funds, resulting in the freezing of domestic collection cards by public security organs; 2. Legal risks: it is illegal to buy and sell foreign exchange without permission, which can be fined, and even if it is suspected of illegal business operation, it will face criminal punishment; 3. The risk of capital transfer running away: without any regulatory endorsement, once the bank loses contact, foreign traders will lose all their money.

Tracking Company Payment Collection Transactions

Exchange Rate Converter

Our Strength

24/7 RealTime Online Currency Exchange

Constant Access to Market-Beating Rates

FX limit orders

Hong Kong/Chinese mainland Company Registration

Send Money to China, the Most Cost-Effective Choice

Partner

Our licenses