Cross-border transactions may become complex due to factors such as transaction regions, currencies, counterparties, and transaction subjects. During the transaction process, the following internal and external uncontrollable factors may be encountered:
- Anti-money laundering policies and regulations across countries and card networks;
- Exchange rate fluctuations between different currencies, settlement losses, and financial institution fees;
- Tax policies in various countries/regions;
- Counterparty guarantee fees for different transaction subject commodities;
- Transaction deviations in cross-currency exchange settlements.
Even though transactions may complete instantaneously despite these factors, acquiring banks, card networks, and financial institutions have established reasonable fee structures to ensure secure fund transfer and proper settlement. Your understanding is appreciated.