How to solve the problem of cross-border payment collection through Hong Kong bank account?
Customs data show that China's cross-border e-commerce market reached 7.1 trillion yuan in the first half of 2022, and the market is expected to reach 15.7 trillion yuan in 2022. China has set up 105 comprehensive pilot zones for cross-border e-commerce and more than 100 bonded zones.
With the gradual opening of all-round and deep-level cooperation, China's cross-border e-commerce industry may sail into a brand-new stage, facing the merchants and consumers in more than 200 countries and regions around the world, the market potential is huge, so in the entire cross-border trade chain, cross-border remittance collection and transfer whether it is safe, compliant, simple, and smooth is directly related to the core interests of the export of e-commerce.
01How Hong Kong Bank Accounts Solve Cross-Border Payment Collection Problems
A complete cross-border payment process actually contains three major links: acquiring, collecting, and settling.
Take the process of third-party cross-border payment in cross-border e-commerce B2C export transactions as an example:
The acquirer clears the payment through the card issuer and the international card organization;
The money is credited to the merchant's overseas account;
Subsequently the receiving company carries out relevant account services and transfers;
The final settlement and sale of foreign exchange through banks or domestic licensed institutions.
In particular, the final settlement and sale of foreign exchange, which is settled into RMB when the money is returned, will be affected by the exchange rate at that time and will also require a corresponding handling fee.
For the start-up e-commerce sellers, more suitable for such a way, but for a certain scale of cross-border e-commerce, and involves the transaction of business in different countries and regions, the use of foreign exchange will be increased, the account in and out, the operating procedures, costs will increase, for the lack of a certain degree of convenience for the business process. At this time, the overseas bank account is particularly important!
Take Hong Kong bank account as an example, a foreign trader or cross-border e-commerce business with a Hong Kong bank account can enjoy the following advantages:
1.Not subject to foreign exchange control, free transfer of funds. Hong Kong does not have foreign exchange control measures, you can independently control the transfer of account funds, not subject to domestic foreign exchange control, in the international collection of money and other business has a very big advantage.
2.Improve the efficiency of integrated operation of domestic and overseas funds. Considering that many sizable cross-border e-commerce companies have businesses in different countries and regions and have corresponding requirements for capital turnover periods, offshore bank accounts can not only reduce the comprehensive cost of capital, but also accelerate capital turnover and improve the efficiency of capital utilization.
3.Offshore deposits offer more substantial actual net returns and flexible access. The account can be operated through online banking, and domestic and overseas funds can be manipulated 24 hours a day. So, for foreign trade and cross-border e-commerce merchants who need to collect and settle foreign exchange, having an offshore bank account undoubtedly brings great convenience to our collection and payment, and is a standard tool for foreign trade and cross-border e-commerce.
02How to maintain a good Hong Kong bank account
Having a Hong Kong bank account brings a lot of convenience to our business, and at the same time, we need to have certain maintenance for it.
Especially in the context of global CRS, it is more important to maintain our Hong Kong bank accounts with care to avoid being frozen by banks due to unusual circumstances.
As the bank's scrutiny of each financial account becomes more and more stringent, there will be a few people whose accounts are closed due to improper operation, so in order to prevent the closure of overseas accounts, there is also a need to maintain the relevant behavior, so that we can be successfully completed in the later stages of the various types of business transactions.
What are the tips for maintaining a Hong Kong bank account?
1.Keep the account active and resolutely refrain from being a zombie account
Some people, after opening a Hong Kong bank account, due to certain reasons, the account will be idle for a long time, neither trading, nor cancel, but also long-term empty account (i.e., the account does not have any deposits), pay special attention to, this kind of behavior is risky, because it not only occupies the bank's service resources, but also be treated by the bank as anomalous account processing, and serious or even be frozen by the bank.
2. Do not trade with high-risk areas
It is necessary to pay special attention to the fact that the funds in the account should not be traded with clients from countries or regions that are under sanctions or at war.
3. Legitimate transactions, resisting money laundering behavior
Whether domestic or international, money laundering behavior is a street rat, everyone shouting, especially in recent years the international anti-money laundering operations are hot to carry out, most countries for money laundering is a severe crackdown, so the use of Hong Kong bank accounts in the process, we must consciously comply with the law, and resolutely resist money laundering, or else it is easy to be stared at by the bank and may be listed as anomalous accounts, or even directly frozen, affecting the account holder's personal credibility. Impact on the account holder's personal credibility.
03List of high-risk areas for global trading
International trade transactions, high-risk or sanctioned countries are often at risk, there are also many customers have encountered the following problems:
Reader 1: It was hard for me to talk about a Russian customer, but I encountered a problem with the collection, and the customer's remittance was returned. The bank said that because Russia is a country sanctioned by the United States, so the original way back, then how to do the Russian customers in the future ah?
Reader 2: Russia is a sanctioned country, how should I collect the money? The bank said it would ask for a lot of information if it found out. Private accounts are also strictly regulated by the bank and basically cannot be collected. What should I do?
Reader 3: I have an Iranian customer who has placed a lot of orders, and because of the U.S. sanctions, it is now very difficult for him to buy U.S. dollars to pay the final payment. The customer asked if he could sell some Iranian products to China and exchange some dollars for trade?
Three readers encountered the same problem, that is, the customer's country are the United States or the European Union economic sanctions, so remittances on the difficulties.
Some people may ask what the US sanctions have to do with Chinese banks. Why can't Chinese banks receive the dollars sent to them?
This is because the issue of international trade should not only comply with the relevant laws of our country, but also take into account international practices. Banks are indeed very sensitive to high-risk areas of money transactions, because if detected, will be penalized or even cancel the account.
