The common-applied forms of settlement include telegraphic transfer, collection and L/C. Merchants especially from America use Paypal as the major settlement form during transaction because Paypal is a convenient and guaranteed settlement mode with low risks.
But, is Paypal really safe
for both seller and purchaser?
Account gets frozen
due to Paypal?
Actually, Paypal is not recommended by many other merchants due to its high service charges.
For example
If you send a sample to customer and charge fees via Paypal, after deduction of service charges and a withdrawal of 35 dollars, then how much do you still possess in the account?
Additionally, disputes often occur when customers apply for money withdrawal. Sellers’ accounts are frozen sometimes because of purchasers’ malicious complaints. In fact, quite a few people suffer losses on Paypal or even lose their cargoes.
Thus, we are here to show you how to avoid these risks.
Ascertain the Credit Limit
If it is just a small transaction amount, it will be OK to use Paypal. But if it is not, you should avoid using Paypal in case of heavy losses. Moreover, be more careful when doing business with new customer who is using Paypal.
Withdraw Money In Time
Once you receive the payment, withdraw cash from your Paypal account as soon as possible. Otherwise, you cannot get the money from your account, which is frozen because of purchasers’ malicious complaints.
If you engage frequent transaction activities, pay more attention to cases mentioned above.
Effect Shipment After Withdrawal
Never effect shipment or deliver goods until you withdraw cash from your Paypal account after receiving payment. What if there is a trap that put your money and cargoes in danger?
Keep Receipts for Delivery Evidences
Take a picture or shoot a video on cargoes before shipment so as to make sure the cargoes are in good condition. Keep all shipping documents, receipts and the tracking number as well, which can be used for evidences when it comes to dispute.
Adopt Other Settlement Modes
Besides from Paypal, you’re suggested collecting payment via personal account (with the limited quota of $50,000 per year) or Western Union, and Wechat, Alipay or even cash is also recommended during transaction. In these ways, you can mitigate potential risks from using Paypal.
Attention
In short, Paypal is sort of a buyer-protection mechanism, that’s why the seller always becomes a victim of payment fraud, suffering money and cargo losses. So, as a seller, if you are using Paypal, remember to withdraw money from your account as soon as possible.
For more shipping and logistics information, welcome to follow HACOSLogistics! Thanks for your support!
HACOS,Business Services Solutions Master