Chargeback and Chargeback Risk
In fact, in the normal sales process, it is inevitable that consumers will refund the order. Because the refund policy is a consumer protection mechanism, the sales amount will be directly returned to the buyer after the refund is initiated. If this occurs within a certain reasonable range, such as a refund due to a product problem or a logistics error, then you only need to do a good job of after-sales service. If this is an abnormal reason to charge back the order, it will inevitably lead to damage to the interests of the merchant.
Merchants encounter cross-border payment risks such as order chargebacks
Compared with the chargeback after negotiation with the merchant, the chargeback behavior may be a cross-border payment risk that is more troublesome for the seller. Because the credit card chargeback is the cardholder's refusal to recognize the transaction or the transaction operation is not compliant, and the card is issued by the cardholder. The bank unilaterally initiates the transaction revocation, so the merchant does not have much say in it. For example, some fraudsters will swipe the credit cards of overseas consumers for consumption, and cause the cardholders to apply for a chargeback after learning. For fraudulent chargebacks of such unauthorized transactions, merchants often need to provide very detailed evidence to successfully appeal, and if they have already shipped, they also need to bear the loss of goods.
Freeze account risk
Another serious payment risk is that the third-party payment account used by the merchant is frozen or even blocked, which means that the merchant can no longer use this channel to conduct any cross-border sales, which will directly lead to the blocking of the brand going overseas and even threaten the survival of the entire company. There are many main fuses behind it, and the most common one is the dispute over the intellectual property rights of commodities. Since many domestic merchants do not have strong product research and development capabilities in the initial stage, they mainly rely on observation of popular models for imitation, or sell similar styles of products on the market, so it is easy for some consumers or competitors to seize evidence and litigate . Once this kind of situation is involved, the third-party payment platform will freeze the store's collection account. If the merchant does not have sufficient funds and evidence to deal with it, the final result is likely to be cleared.
At the same time, the improper operation of the merchant's cash withdrawal is also prone to problems, especially after receiving the payment through an account such as PayPal, if it has not been shipped yet, try not to withdraw cash immediately, because it is easy to be monitored and frozen by the system background. At the same time, the one-time withdrawal amount should not account for too much of the account balance. Generally, 80% of the withdrawal ratio is more appropriate and safe, and the remaining 20% of the balance can be used for buyer returns and refunds.
Exchange rate fluctuation risk
The risk of exchange rate fluctuations has always been one of the most important payment risks in cross-border trade. Affected by the macroeconomic environment and the unstable global situation, the exchange rate fluctuations between the currencies of various countries have become more and more volatile in recent years, and the trend has become increasingly difficult. predict. If the overseas sales end pricing is not adjusted according to the exchange rate, or the adjustment is not timely due to industry competition and other reasons, it may cause the merchants to suffer exchange rate losses, especially the small and medium-sized sellers with small profits but quick turnover as the main model. This kind of blow is very Heavy, you may lose most of your profits directly due to one exchange rate fluctuation.
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