Issue 3: Payments & Settlements

1. Payment Gateway
   A payment gateway is a financial service that allows merchants to process credit cards, debit cards, and other online payment methods securely. It establishes a connection between buyers and sellers, ensuring that payment information is encrypted and transmitted securely. Examples of popular payment gateways include PayPal, Stripe, and Adyen.

2. Exchange Rate
   An exchange rate is the rate at which one currency is exchanged for another. Since cross-border e-commerce involves international transactions, fluctuations in exchange rates can affect costs for both merchants and consumers. For example, if the USD to EUR exchange rate changes, European consumers purchasing from US merchants may pay a different amount.

3. Chargeback
   A chargeback occurs when a cardholder disputes a transaction and requests a refund from their credit card company or bank. If the bank or payment provider deems the chargeback valid, the funds are returned to the consumer, and the merchant may face financial losses along with additional fees. For example, a customer may file a chargeback if they did not receive their order or suspect fraudulent activity.

4. Escrow Payment
   Escrow payment is a secure payment mechanism where a third-party payment platform temporarily holds funds until the buyer confirms receipt of goods or services. This method is often used in high-value cross-border transactions to reduce fraud risks. For example, platforms like AliExpress and Escrow.com offer escrow payment services to safeguard both buyers and sellers.