Question 1

What are the requirements for the preferred local collection instrument for foreign trade enterprises in US dollars?

Accepted Answer

The preferred tool must have three conditions: compliance licensing, support for local clearing, and tight wind control. Compliance licensing ensures that funds are not subject to domestic and foreign regulatory crackdowns. Platforms such as XTransfer, which are specially built for B2B foreign trade, not only meet the above requirements, but also provide one-stop service from collection to foreign exchange settlement, which greatly reduces the financial operation cost of small and medium-sized enterprises and is an efficient choice for foreign trade collection.

Question 2

When a buyer asks to remit US dollars to a corporate account, how do you do it?

Accepted Answer

Sellers only need to open an enterprise-specific US dollar account on a compliant cross-border collection platform and send the account information to the buyer. The specific operation steps are as follows: first, log in to your enterprise collection background, select to apply for a new account and check the US dollar currency; Secondly, generate exclusive bank information with your company's header, including account name, account number and routing code; Finally, add this information to the proforma invoice (PI) and send it to the buyer, who can initiate public-to-public remittance through the bank.

Question 3

European and American customers use credit cards to pay B2B large deposits, how do sellers charge?

Accepted Answer

Credit card payments are not recommended for large B2B transactions. Credit card fees are usually as high as 3% or more, and buyers have the right to initiate a refusal within a few months, and sellers are at great risk of losing money. For large deposits, it is strongly recommended to direct customers to use local bank transfers (e. g. ACH or SEPA networks). In this way, not only the handling fee is extremely low or even free, but also the funds cannot be easily withdrawn once they arrive, thus ensuring the seller's capital security and trading profits to the greatest extent.

Question 4

How much money can be saved by local collection in US dollars compared to direct wire transfer?

Accepted Answer

U.S. dollar local receipts can usually save buyers and sellers tens of dollars in intermediary fees. Traditional SWIFT wire transfers need to go through a number of intermediary banks, each of which will deduct fees from them, resulting in sellers often not receiving the full payment. The local collection method is to use the domestic clearing network of the buyer's country to transfer, which is equivalent to domestic transfer. This not only achieves a substantial reduction in handling fees, but also shortens the receipt time from the traditional several working days to the same day or even real-time receipt.

Question 5

Why are some foreign trade dollar accounts forced to close after a period of time?

Accepted Answer

Account closure is usually caused by three major violations: first, long-term no transaction records, is judged to be a dormant account. To avoid closing accounts, enterprises must ensure that all receipts have a real and traceable trade background, actively cooperate with the platform's wind control material review, and resolutely reject any collection and payment requests from unknown sources.

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