I’ve recently started working in export agency and am unclear about payment methods. Could anyone share how export agents usually receive payments? I’ve heard there are multiple methods—what are the pros and cons of each? Which method is relatively more reliable in terms of fund security and payment efficiency? I’d appreciate detailed insights from experienced professionals. Thanks!
Engaging in foreign trade business through the export agent method, having doubts about foreign exchange settlement operations, inquiring about the foreign exchange settlement methods suitable for export agents and matters needing attention. The best answer states that common methods include bank foreign exchange settlement and third - party payment platform foreign exchange settlement. The former is safe but has cumbersome procedures, while the latter is convenient and fast. One should choose according to the business situation, and when conducting foreign exchange settlement, it is necessary to ensure the authenticity of the trade and prepare the documents.
Our company intends to find an export agent to handle business and wants to understand the fee collection methods of export agents. We are asking whether it is based on the proportion of the order amount or other models, and whether there are any hidden fees. The best answer states that the common fee collection methods of export agents include charging based on the proportion of the order amount, usually 1%-5%; charging per ticket, 800 - 2000 yuan per ticket; and charging extra for value-added services. Regular agents have no hidden fees and will clarify the fee details before cooperation.
When doing trade in Changzhou and wanting to know about export agency fees, inquire about the charging standards and whether there are differences in charges for different products. The best answer points out that there is no fixed standard for Changzhou's trade export agency fees. Common methods include charging by a percentage of the order amount (1% - 5%), charging per ticket (around 800 - 2000 yuan), and comprehensive charging. Different products, transportation methods, trade terms, etc. will all affect the charges. It is recommended to provide detailed business information to agency companies like Zhongshitong for a quotation.
I'm planning to find an export agent to handle business. I'm worried that improper selection of payment collection methods may lead to capital risks. I'd like to inquire about the payment collection methods, characteristics and reliable and safe methods of export agents. The best answer introduces that common payment collection methods include telegraphic transfer, letter of credit, collection, etc. The former T/T and letter of credit are relatively reliable and can ensure the safety of payment collection. When choosing, comprehensive considerations should be made in combination with the actual situation of the business, etc.
I've just got involved in the import and export agency business and have doubts about revenue recognition. There are various fees and complicated processes in actual operations. I don't know whether to recognize revenue when the order is completed or when the payment is received. The best answer points out that for import and export agents, revenue is commonly recognized according to the progress of agency services or when the payment is received. It is necessary to distinguish between agency fees and collection and payment on behalf of others, execute according to the contract, and at the same time pay attention to the matching of costs and revenues, etc.
I'm new to the import and export agency business and have doubts about revenue recognition. I want to understand the basis and methods for recognition, as well as how customs clearance, transportation, and other processes affect it. The best answer points out that import and export agents commonly use the net method (based on service fees) or the gross method (assuming major risks and rewards of the goods, recognizing full amount). The impact of customs clearance and transportation varies under different recognition methods and should be judged based on actual business conditions.
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Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Common payment methods for export agents include the following. First, wire transfer (T/T), a widely used method where clients directly transfer funds to the agent’s bank account. It’s fast, typically taking 3–5 business days. Pros: simple and quick; cons: errors in details may cause refund delays. Second, letter of credit (L/C), where banks issue conditional payment guarantees based on client requirements. Pros: high security backed by bank credit; cons: complex procedures, high fees, and strict documentation requirements. Third, collection, divided into documents against payment (D/P) and documents against acceptance (D/A), where banks handle documents but don’t guarantee payment. D/P is safer, while D/A carries higher risks. The more reliable options are T/T and L/C. T/T is efficient if details are accurate, while L/C, though cumbersome, ensures fund security with bank backing. Choose based on your business needs.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Western Union is another option—it doesn’t require a bank account and is fast, often completing transfers in minutes. However, fees are high, and there are amount limits per transaction, making it unsuitable for large payments.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
PayPal is convenient for small transactions, functioning like a digital wallet with a global user base. However, seller protection is limited, and disputes may lead to frozen funds.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
International Alipay is recognized globally and easy to use. However, besides transaction fees, withdrawing funds to a domestic bank account incurs additional charges.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Bank drafts involve clients issuing drafts, which agents can collect via banks. Pros: flexibility; cons: long processing times and potential issues with invalid drafts.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Cash payments are rare, typically for face-to-face transactions. Pros: immediate payment with no follow-up risks; cons: inconvenience, security concerns, and potential tax issues.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
MoneyGram is similar to Western Union—fast but with high fees and amount limits, suitable for small, urgent payments.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Check payments involve clients issuing checks for agents to collect. Risks include bounced checks and slow processing times.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Third-party payment platforms support multiple international methods and streamline collections. However, choose reputable platforms to avoid fund security risks.