What are the requirements for third-party payments?
I. Overall Policy on Third-Party Payments
· Prohibited third-party payers: Payers suspected of operating an underground bank, or who have a history of involvement in sanctions-related activities or other high-risk payment activities；
· Only third-party payments with justifiable commercial rationale will be accepted; payments deemed suspicious or those lacking a reasonable underlying transaction will be rejected.
When sending payment, the payer is advised to include a payment note detailing the transaction details to expedite the crediting process. Payment notes should include the buyer's name, invoice number, and product description. For example: (Buyer’s name), (PI/contract no.), (product category). For instance, if your buyer is Company X but payment is made by its affiliate, Company Y, Company Y should complete the payment note as follows: Company X, Invoice no. xxxxxx, Product xxxxxx
II. Global Receiving Account Requirements Regarding Third-Party Payments
Acceptable third-party payment scenarios and documentation requirements:
1. The payer is a shareholder or director of the buyer company
May require supporting documentation to officially verify the relationship to the director or shareholder.
2. The payer is an affiliated company of the buyer
May require supporting documentation showing the cross-holding structure with the buyer.
3. The payer is the end-customer of the buyer (The payer's industry must be compatible with your company's primary business operations).
A tripartite contract, or a purchase agreement between the payer and the buyer. Contracts must bear the company's official seal or a valid signature. For signed contracts, the signatory’s identification (such as an ID card or passport) must be submitted.
Quantity control: It is recommended that a single buyer avoid using multiple third-party payments, otherwise the transaction may be rejected and returned.
4. The payer is a related business partner of the buyer (e.g., a freight forwarder or customs broker).
Provide the agency agreement between the buyer and the paying company. Quantity control: It is recommended that a single buyer avoid using multiple third-party payments, otherwise the transaction may be rejected and returned.
5. Please note
Some receiving accounts may not support third-party payments or may have other requirements. In the event of any discrepancy, please refer to the specific requirements for the receiving account in question. For payments made via a third-party payment platform, the original payment statement (e.g., bank transfer receipt) from the money sender can be provided to help verify if the payment is a third-party payment. The types of third-party payments supported and the required documents may vary depending on the risk policy of the local channel. Please refer to the requirements of each individual channel.
III. Local Receiving Account Requirements Regarding Third-Party Payments
1. Acceptable third-party payment scenarios and documentation requirements
(1) Third-party payments by individuals
· The payer is a shareholder or director of the buyer company or employee
Required documentation: If verification cannot be completed via a search, supporting documentation must be provided to officially verify the relationship to the director or shareholder (such as the company’s articles of association). · The payer is an employee of the buyer company
Required documentation: The employee’s employment contract or proof of employment with the company.
(2）Third-party payments by businesses
· The payer is an affiliated company of the buyer
May require supporting documentation showing the cross-holding structure with the buyer.
· The payer is the end-customer of the buyer (The payer's industry must be compatible with your company's primary business operations).
Required documentation: A tripartite contract, or a purchase agreement between the payer and the buyer. Contracts must bear the company's official seal or a valid signature. For signed contracts, the signatory’s identification (such as an ID card or passport) must be submitted. Quantity control: It is recommended that a single buyer avoid using multiple third-party payments, otherwise the transaction may be rejected and returned. · The payer is a related business partner of the buyer (e.g., a freight forwarder or customs broker)
Required documentation: Provide the agency agreement between the buyer and the paying company.
Quantity control: It is recommended that a single buyer avoid using multiple third-party payments, otherwise the transaction may be rejected and returned.
2. Local Individual Payment Limits (excluding Europe, the United States, and Australia)
Provided that shipping documents meet XTransfer’s requirements, a merchant's total individual receiving limits—for both local receiving accounts and the Request money feature—are tiered according to the quality of the shipping documentation submitted by the customer.
● User group I：
·Merchant’s total individual receiving limit:
On a per-payer-country basis, the merchant’s individual receiving limits are set at an equivalent of $4 million USD annually and $1.5 million USD quarterly.
·Conditions: If the customer provides one of the following three document types:
○ Original or copy of the ocean freight bill of lading/air waybill, but neither the shipper nor the consignee matches the buyer and seller, then additional supporting documents are required to prove the relationship.
○ Trackable ground transportation documents, but neither the shipper nor the consignee matches the buyer and seller, then additional supporting documents are required to prove the relationship.
○ Export customs forms, land transport documents, and proof of delivery, but neither of the parties specified on the customs forms matches the buyer and seller, then additional supporting documents are required to prove the relationship.
·Single payer to single receiving account:
Annual limits are set at an equivalent of $1,500,000 USD.
● User group II：
·Merchant’s total individual receiving limit:
On a per-payer-country basis, the merchant’s individual receiving limits are set at an equivalent of $8 million USD annually and $3 million USD quarterly.
·Conditions: If the customer provides one of the following three document types:
○ Original or copy of the ocean freight bill of lading/air waybill, provided that either the shipper or the consignee matches the buyer and seller.
○ Trackable ground transportation documents, provided that either the shipper or the consignee matches the buyer and seller.
○ Export customs forms, land transport documents, and proof of delivery, provided that at least one of the parties specified on the customs forms matches the buyer and seller.
·Single payer to single receiving account:
Annual limits are set at an equivalent of $2,000,000 USD.
● User group III：
·Merchant’s total individual receiving limit:
Activation of local receiving accounts in these countries is not supported
·Conditions: If none of the above documents can be provided:
E.g., only land transport documents are available but shipping status tracking cannot be verified.