Will personal cross-border payment be regulated? Is there a limit on the amount?

For merchants doing cross-border e-commerce, the most common payment methods are PayPal, credit cards and Western Union. In addition, there are wire transfers and letters of credit. Some merchants asked, will personal cross-border payment be regulated?

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1. Is there any limit on the amount of cross-border payments for individuals?

1. The annual upper limit for foreign exchange purchases by domestic individuals with their ID cards is US$50,000, and the upper limit for remittances abroad is US$50,000 per day;

2. The purpose of remittance written by the remitter when making the remittance must not be fictitious and must be accurate;

3. The payee cannot be a financial company, such as an investment company, securities company, gold exchange, futures exchange, insurance company, etc.;

4. The remitter and address filled in when remitting money abroad must be detailed and accurate.

2. What are the ways for individuals to receive cross-border payments?

1. PayPal payment

PayPal is currently the world's largest online payment company. It has more than 190 million active users in 203 countries and regions around the world. Cross-border transactions account for 21% of the total transaction volume, allowing funds to be transferred between users who use email to identify themselves.

2. Western Union Receipt

Main usage scenarios: offline payment collection, suitable for small amount of foreign exchange collection

Advantages: Zero risk, zero handling fee. Directly transfer money to the provided Western Union account, and the handling fee is borne by the buyer. Zero risk for the seller, first collect the payment and then ship. And the payment will be received immediately after the customer pays, and the timeliness is very fast.

Disadvantages: It is troublesome for customers to pay, and the handling fee is high. Customers need to go to the bank to queue up, and they have sent pictures of the number in the bank several times; the bank cards for receiving remittance are limited. I have tried Postal Savings Bank, Bank of China, and Everbright Bank, and they can all receive remittance through Western Union.

3. Hong Kong offshore company bank account

Advantages: There is no limit on the amount of wire transfers received, and there is no limit on the annual personal foreign exchange settlement limit of US$50,000. Suitable for receiving large remittances.

Disadvantages: The threshold for opening bank accounts for offshore companies in Hong Kong is getting higher and higher. Since 2017, HSBC, as a leading bank in Hong Kong, has actively responded to the CRS tax exchange policy, opening the prelude to anti-money laundering and capital outflow policies. Banks have also tightened their account opening policies, shutting out many small and medium-sized enterprises.

In summary, personal cross-border payment will be regulated. For example, if the account funds suddenly exceed 500,000, or the funds inflow and outflow in one day exceed 500,000, the bank will ask you to provide proof of the legality of the source of funds.