WeChat pay has become a bridge for many years especially in cross border trade between developed countries and China. As of Q2 2019, WeChat has 1.1 billion users and 91% of consumers based in China. Today, we are going to briefly introduce several cross-border payment channels from WeChat and also, detailed demonstrate their payment limitation.
How many cross-border payment channels are included in WeChat wallet? And their limitations?
There are three methods for Chinese clients pay overseas which are “Wallet Balance”, “Debit/Credit Card”, and “Mini Fund”. From the perspective of customers: the transaction limit is decided by both the payment platform (WeChat pay) and the bank.
1. Wallet Balance, which is a traditional function for cross-border payment from WeChat pay. It can freely top-up funds or withdraw money to credit cards or from debit cards respectively.
The limitation for Wallet Balance cross-border payment is 200,000 RMB Per Year and, or 50,000 RMB Per Transaction or Per Day.
2. Debit/Credit Card
Consumers can make the payment overseas through WeChat when they bound their bank card.
On the bank side, the transition limitation varies both on bank policy and expenditure quota setting, typically 10,000~50,000 RMB Per Transaction or Per Day. For instance, the cross-border payment limitation for the ICBC debit card is 30000 RMB Per transaction, and that for BOC credit card is 10000 RMB Per transaction. For more details, please click the link below: https://kf.qq.com/touch/sappfaq/151210NZzmuY151210ZRj2y2.html?platform=15
3. Mini Fund is the is the newest feature of WeChat, customers can use the Mini Fund directly for consumption, for example, transfer fund, scan QR payment and credit card repayment. At the same time, when the money is stored in the Mini Fund which can generate interest automatically.
The limitation for mini fund is 300,000 RMB Per Year.
Inconclusion, from the perspective of merchants: currently there is no limitation on the amount of money they can receive. Once the customer completes a cross-border payment, the money will be allocated to GlobePay segregation account and ready for settlement.