Understanding cross-border payments requires a clear grasp of two core components: information flow and fund flow. These elements form the backbone of any international transaction, determining how data is transmitted and how money moves across borders. In this comprehensive guide, we’ll explore 16 real-world cross-border payment scenarios—ranging from card-based transactions to digital wallets, B2B trade settlements, and cryptocurrency payments—breaking down their information and fund flows for deeper insight.
Whether you're a product manager, fintech professional, or business owner expanding globally, mastering these flows enhances your ability to design, analyze, and optimize international payment systems.
Understanding Information Flow and Fund Flow
Before diving into specific scenarios, let’s clarify the foundational concepts.
What Is Information Flow?
Information flow refers to the transmission of transaction data across systems involved in a payment. This includes:
- Transaction requests and confirmations
- Authentication details
- Currency conversion rates
- Payment status updates
Key characteristics:
- Near real-time or real-time transmission
- Bidirectional (request + response)
- Fully traceable with no data loss
👉 Discover how seamless information flow powers global commerce today.
How to Analyze It:
- Identify all participating entities (payer, payee, banks, gateways, etc.)
- Map out each step where data is sent or received
- Trace the path from initiation to confirmation
What Is Fund Flow?
Fund flow represents the actual movement of money from the payer’s account to the payee’s account. It involves:
- Debits and credits across multiple accounts
- Currency conversions
- Settlement through clearing networks
- Fee deductions at various stages
Key characteristics:
- Slower than information flow due to banking hours, regulations, and intermediaries
- Involves cost leakage (fees reduce final received amount)
- Dual-layer process: network messaging + ledger entries
How to Analyze It:
- Identify all financial accounts involved
- Determine direction and amount of fund movement
- Track settlement path and final disbursement
Core Keywords
To ensure strong SEO performance and relevance, here are the primary keywords naturally integrated throughout this article:
- Cross-border payment
- Information flow
- Fund flow
- International money transfer
- Digital wallet payment
- B2B cross-border settlement
- Cryptocurrency payment
- Virtual credit card (VCC)
These terms reflect high search intent and align with user queries around global transaction mechanics.
16 Cross-Border Payment Scenarios Breakdown
1. Offline Card Swipe (International Card Acquiring)
A customer uses a foreign-issued Visa card (USD) to make a purchase in China (CNY). The merchant is enrolled under a domestic acquiring bank.
Information Flow:
Card → POS terminal → Acquirer → Card scheme (Visa) → Issuer → Approval response → Merchant
Fund Flow:
Issuer debits USD → Visa converts to CNY → Acquirer settles CNY to merchant (after deducting issuer, scheme, and acquirer fees)
Note: FX conversion typically handled by card network; settlement lags by 1–3 days.
2. Wallet-Bound International Card (e.g., Alipay)
User binds a foreign Visa card to Alipay and pays a Chinese merchant in CNY.
Information Flow (Two Phases):
- Bind: User → Wallet → Card Network → Issuer → Confirmation
- Pay: Merchant → Wallet → Card Network → Issuer → Authorization
Fund Flow:
Issuer → Card Network (USD) → Wallet Acquirer (converted to CNY) → Wallet Platform (fees deducted) → Merchant
👉 See how digital wallets streamline international card payments.
3. UnionPay App with Foreign Card (Cloud QuickPass)
User binds an overseas UnionPay card to Cloud QuickPass and pays domestically.
Information Flow:
User → Cloud QuickPass → UnionPay International → Issuer → Response → Merchant
Fund Flow:
Overseas issuer debits USD → UnionPay converts to CNY → Domestic settlement to merchant via China UnionPay
Fees shared between UnionPay International and local UnionPay entity.
4. Local Card Payment Abroad (e.g., ELO in Brazil)
Brazilian user pays with locally issued ELO card at a local merchant.
Information Flow:
Card → Terminal → Acquirer → ELO Network → Issuer → Approval
Fund Flow:
Issuer → ELO Network → Acquirer → Merchant (after fees: issuer ~1.5%, scheme ~0.5%, acquirer ~1%)
5. Local E-Wallet Payment (e.g., TrueMoney in Thailand)
Thai user pays with Truemoney wallet balance.
Information Flow:
User scans QR code → Wallet gateway → Aggregator → Merchant system
Fund Flow:
Wallet balance debited → Aggregator receives funds → Transfers net amount to merchant (minus wallet fee ~3%, aggregator ~1%)
6. Local Bank Transfer (e.g., P24 in Poland)
Polish user pays via online banking using P24.
Information Flow:
Merchant site → P24 gateway → User’s bank → Confirmation back
Fund Flow:
User’s bank debits PLN → P24 processes transfer → Deposits to merchant (after bank + P24 fees)
7. Mobile Carrier Billing (e.g., Globe Telecom in Philippines)
User pays with mobile phone credit.
Information Flow:
Merchant app → Carrier gateway → User confirmation → Payment approved
Fund Flow:
Carrier bills user → Collects revenue → Pays merchant via aggregator (high fees: up to 30% + 5% aggregator cut)
8. Offline Cash Payment Network (e.g., OXXO in Mexico)
User pays cash at OXXO store after placing online order.
Information Flow:
E-commerce site generates voucher → User pays at OXXO → System confirms
Fund Flow:
OXXO collects cash → Transfers funds to merchant via aggregator (fees up to 30%)
9. Cryptocurrency Payment via OTC Desk
Buyer converts USD to USDT, pays merchant, who sells USDT for USD.
Information Flow:
Buyer ↔ OTC ↔ Blockchain ↔ Merchant ↔ OTC ↔ Fiat bank
Fund Flow:
USD → USDT (minus OTC spread) → Merchant receives crypto → Converts back to USD (further loss)
High volatility risk; double conversion spreads reduce net receipt.
10–11. B2B Cross-Border Receipt: VA vs. Own Foreign Account
Virtual Account (VA) Model:
- Buyer wires USD to VA held by payment platform
- Platform consolidates, converts, reports, disburses in CNY
- Fees: Incoming (~$5), FX (~$5), domestic transfer (~¥50)
Own Foreign Bank Account:
- Seller receives USD directly in overseas account
- Transfers manually to domestic bank
- Manual compliance reporting required
VA model offers automation; own account gives control but increases operational burden.
12–13. Cross-Border E-commerce Receipt (e.g., Amazon Sellers)
VA Mode:
Same as B2B VA—platform handles collection, FX, remittance.
Own Account Mode:
Seller uses personal foreign bank linked to Amazon; manual withdrawal needed.
👉 Learn how automated payout solutions can simplify global e-commerce operations.
14–15. Cross-Border Outbound & Inbound Payments
Outbound (China to Overseas):
Business pays overseas logistics provider via payment platform.
Flow:
CNY transferred to platform’s domestic account → FX conversion → SWIFT/outward remittance in USD
Inbound (Overseas to China):
Foreign entity pays Chinese vendor.
Flow:
Foreign remittance to platform’s forex reserve account → FX settlement in CNY → Domestic disbursement
Both require regulatory compliance: SAFE reporting for outbound, inbound declaration for inbound.
16. Virtual Credit Card (VCC) Issuance
Domestic user gets VCC from a fintech platform to spend abroad online.
Information Flow:
User requests card → Platform issues card data via issuing bank partner → Used on foreign site
Fund Flow:
User funds platform account → Platform pre-funds issuing bank → Bank authorizes spending
Useful for subscriptions, SaaS tools, ad spend—avoids need for real international cards.
Frequently Asked Questions (FAQ)
Q: What’s the difference between information flow and fund flow?
A: Information flow is the digital exchange of transaction data (fast, bidirectional), while fund flow is the actual movement of money (slower, unidirectional with deductions).
Q: Why do cross-border payments take days to settle?
A: Due to intermediary banks, time zone differences, working hours, compliance checks, and multi-step clearing processes—especially in traditional SWIFT transfers.
Q: How are currency conversions handled?
A: By card networks (Visa/Mastercard), payment platforms, or banks—each applying their own exchange rate with a markup.
Q: Are virtual accounts safe for receiving international payments?
A: Yes—if used through licensed payment institutions. They offer compliance-ready solutions with built-in FX and reporting.
Q: Can small businesses use VCCs for global spending?
A: Absolutely. Many fintech platforms issue VCCs for online services like cloud hosting, advertising, or software subscriptions without requiring a corporate international card.
Q: What’s the most cost-effective way to receive cross-border B2B payments?
A: Using regulated VA providers often beats traditional wire transfers due to lower fees, faster processing, and automated compliance.
By analyzing these 16 scenarios through the lens of information and fund flows, you gain actionable insights into the mechanics of global finance—enabling smarter decisions in product design, treasury management, and international expansion strategies.