Use Case
Product Introduction
Cross-border funds-distribution is a comprehensive solution for cross-border payment, domestic funds-distribution, and funds settlement outbound created by WeChat Pay specifically for the cross-border e-commerce industry
Application Scenarios
1. Distribution Service
When merchants cooperate with KOL, distributors, channels and other parties in promoting their products and attracting customers, they can pay a distribution commission or a fixed percentage through funds-distribution;
2. Supply Chain Service
When domestic supply chain service providers offer warehousing, express delivery, and logistics services, merchants can then distribute transaction funds to partners through funds-distribution;
3. Tax Service
Merchants can use the funds-distribution function to distribute the tax portion of the transaction funds to tax paying companies and other partners, who will then pay taxes to domestic customs and other tax authorities；
4. Technical Service
When software technology service providers supply merchants with technical services such as e-commerce platform/mini programs, merchants can pay the technical service fee through funds-distribution;
5. Other Service
Funds-distribution service can be applied to other scenarios after compliance assessment of the platform.
Product Process
Application Case
Mode Description
1. The "institution/service provider" who has completed onboarding for WeChat cross-border business can apply to enable this product function.
2. Cross-border e-commerce merchants must complete onboarding as a sub-merchant of an "institution/service provider" (hereinafter referred to as "sub-merchant") and authorize the "institution/service provider" to enable funds-distribution.
3. When the institution/service provider handles merchant transactions, it identifies and marks the transaction with "funds-distribution", after which the WeChat Pay platform locks the funds accordingly.
4. The institution/service provider accepts funds-distribution command from the sub-merchant and can initiate a funds-distribution request to the WeChat Pay platform within 0 to 180 days after the transaction is completed. During the actual funds-distribution, the institution/service provider uploads the specific receiver and distribution amount of the merchant to distribute the funds for the transaction.
5. After receiving the funds-distribution command, WeChat Pay platform unlocks the funds according to the sub-merchant's successful transaction and distributes the funds to other parties. This includes the supply chain service provider, tax service provider, technical service provider, social media influencer in distribution, or other profit sharing parties.
6. For outbound payments, the institution/service provider can send an outbound command (on day T) to the WeChat Pay platform within 0 to 180 days after the completion of the transaction. WeChat Pay platform will handle funds settlement outbound on day T+1./p>
7. Regarding refund processing, the distributable/refundable funds are reduced accordingly after the transaction funds-distribution. Therefore, it is recommended to initiate funds-distribution after handling returns/refunds. Moreover, funds-distribution aims to allocate the transaction funds to external service providers. Funds-distribution can be initiated after a return is handled to avoid the potential difficulties of recovering funds from external service providers in case of return or refund after funds-distribution.
8. Funds are distributed through the WeChat system. The receiver account can be a merchant's domestic WeChat account or a personal balance account. Here, the "Merchant's WeChat account" refers to the domestic WeChat Pay merchant ID created for a domestic enterprise entity. Log in to the domestic WeChat Pay platform to register and apply for an account through self-service: https://pay.weixin.qq.com。
Product Features
• Flexible funds-distribution time to facilitate the management of account period
Funds-distribution can be initiated within 0 to 180 days after the transaction is completed.
• Transaction funds can be distributed multiple times and to multiple parties each time.
Transaction funds can be distributed up to 50 times and up to 50 parties each time.
• Funds can be distributed to domestic enterprises or individuals.
The receiver account can be a merchant's domestic WeChat account or a personal balance account.
• The system automatically controls the maximum proportion of the funds that can be distributed.
The maximum proportion of funds for distribution that can be retained at home for a single transaction is 30%.
• Zero cost and zero service charge
No platform service fee is charged for the funds-distribution service.
