‍01 How to Deal with Collections?

When running a Shopify independent site, there are several aspects to consider when dealing with collections, including setting up collection methods, security, collection fees, and more.

Setting Up Collection Methods

‍You can choose the payment methods you need to accept by going to Shopify's backend management system - Settings - Payment Providers. These include Alipay, PayPal, credit card, Apple Pay, WeChat Pay, and so on.

Security

‍Ensure your website has a premium SSL certificate. This will secure personal and credit card information. There are several methods to protect customer payment information, such as using data encryption and working with a reliable payment provider.

Collection Fees

‍Every payment provider charges a percentage of the transaction as a processing fee. Regardless of which payment method you choose, you will need to consider the processing fees associated with that payment method.

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02 What Payment Methods Are Available?

70% of Buyers Choose PayPal

‍PayPal is the most important payment method for cross-border e-commerce, similar to Alipay in China. It has high acceptance in the US market and is the first choice for online shopping. It is also one of the most convenient payment methods with the highest utilization rate. A China business license can be used to open a PayPal account with no account opening fees.

Advantages:

1. • High user trust and wide acceptance, supporting more than 20 currencies in over 190 countries and regions.
   • No registration fees, supports personal and business registration, secure and stable collections.
   • Instant payment, instant arrival, real-time receipt of payments, with the shortest possible time being only 3 days to transfer money internationally to a domestic account.
   • Both parties must be PayPal users to form a closed-loop transaction, ensuring good risk control.

Disadvantages:

1. • Merchants need a third-party organization for cash withdrawal and foreign exchange settlement, with relatively high rates.
   • PayPal tends to favor consumers over sellers in dealing with abnormal orders.

20% of Buyers Choose Credit Cards

‍Credit card payment is commonly used in Europe, the United States, Japan, and South Korea. Larger credit card companies include Visa, MasterCard, and American Express. Credit card channel companies include Stripe, Asiabill, Oceanpayment, and Win to Pay.

Advantages:

1. • Simple to use, easy for users to pay, and easy to access independent stations.
   • Low fees and no withdrawal fees, strict auditing of transactions, and high security.

Disadvantages:

1. • Independent station receipts are mainly in US dollars. When Stripe receives US dollars, it will convert them into Hong Kong dollars, which may result in exchange rate losses.
   • Funds arrival time is long, usually 7 working days.
   • No mainland China in the open countries or regions, mainland companies cannot be registered, and risk control is higher.

‍Shopify Payments

‍Shopify Payments is essentially Stripe integrated into Shopify, with official cooperation. Mainland China companies cannot use it, and it is very strict. If you enable Shopify Payments by modifying the background address, it is very easy to be blocked. Collection fees are 2.4 - 2.9% + $0.30 per transaction.

Advantages:

1. • Lowest fees and no account opening fees, highest security and convenience.

Disadvantages:

1. • Does not support large companies.

Payoneer

‍Payoneer's P-card is a good choice if you consider a combination of local business capabilities, the number of platforms docked, the product's payment and collection capabilities, and the exchange rate advantage. Payoneer has relatively good word-of-mouth feedback among merchants such as Amazon, Walmart, and eBay.

Advantages:

1. • Ease of use. Both individuals and companies can apply for an account online and get approval. The subsequent withdrawal operation can also be completed online, with official Chinese customer service and default opening of USD, EUR, and GBP collection accounts.
   • Officials help sellers audit the accounts of European and American customers and provide full guarantee services to ensure that the seller can receive payment after shipment.

Disadvantages:

1. • Payoneer cannot add value through bank cards or credit cards.
   • Influenced by China's foreign exchange bureau policy, from Payoneer to the mainland bank card, it cannot be credited in US dollars.

PingpongPay

‍PingPong supports mainstream independent sites including Shopify, Wish, and Shopee, and supports Visa, MasterCard, JCB, American Express, and other mainstream international bank cards to receive payments. It supports USD, CAD, EUR, GBP, AUD, and JPY.

Advantages:

1. • Handling fee is lower than the industry average, with no other additional fees, more transparent, and no annual fees.
   • Supports most platforms.
   • Faster withdrawal speed. For example, for mainland sellers, if you withdraw RMB privately, all withdrawals initiated before 6 p.m. on weekdays will arrive on the same day; if you withdraw RMB publicly, it will arrive within 1-2 working days. Original currency withdrawals arrive within 1-3 business days.

Disadvantages:

1. • Accounting time is a bit longer, taking 3-6 working days on average from the time the merchant receives the e-commerce platform's billing email to the time PingPong confirms the accounting.

Cash on Delivery

‍Usually, the courier company collects the payment on behalf of the merchant, and the merchant settles the payment and freight directly with the cross-border logistics company. The effectiveness of logistics determines the signing rate, and the signing rate determines whether the COD e-commerce model is profitable. This payment model has higher requirements for logistics companies and is more commonly used in Southeast Asia, the Middle East, and Taiwan.

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03 Ensure the Security of Payment Collection

Reasonable Setup of Refund Policy

‍When setting the refund policy, independent website sellers should formulate practical and feasible refund regulations according to their own business situation. In general, the refund policy should include the following:

1. Refund Time Limit: The formulation of refund time limits should fully consider the nature of the goods. If it is a high-value commodity, you can set a longer refund time limit; if it is a general commodity, you can set a shorter time limit.
2. Refund Process: The process of refund application should be clearly defined, such as the need for buyers to provide proof, where to submit, etc.
3. Refund Method: Refund methods can be divided into two types: one is the original way back, i.e., the amount is returned to the buyer's account paid on PayPal, and the other is other ways, such as through bank transfer.
4. Refund Policy for Special Products: For some special types of goods, such as customized goods, personalized goods, etc., you can set up a separate refund policy according to specific circumstances.

A reasonable refund policy can not only ensure the interests of consumers but also effectively avoid malicious buyers making unreasonable refunds.

Review the Buyer's Information Carefully

‍After a seller receives an order, they should carefully review the buyer's information, including shipping address, transaction records, contact information, credit rating, and other aspects of the buyer's information.

Choose a Reliable Payment Service Provider

‍Working with a payment service provider that has a good reputation and professional qualifications can reduce the risk of collection. When choosing one, make sure to consider its security, stability, and service quality.

Conclusion

For independent site collections, fund security is the most important consideration, followed by the rate issue. Merchants can choose the payment method that best suits their needs. At the same time, merchants should ensure the security of the payment process and realize the best collection experience.

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