Mr. Guo, who runs a business on Amazon US, received a push notification from Huamei Velo on July 15 of this year stating that if his account's average daily balance falls below $25,000, a monthly management fee of $25 will be deducted.

He usually keeps only $50,000 in his account for day-to-day expenses, so his balance suddenly fell below the Velo Gold threshold. He’s torn: Should he keep using this card?

The biggest change in the U.S. bank card market in 2026 is that Huamei Velo has narrowed the scope of its ”zero management fee for remote account opening” service and refined its tiered service offerings. Today, let’s discuss how small and medium-sized merchants should choose.

01

How exactly are the three gears on the Velo divided?

Under the new rules effective July 15, 2026, Huamei Velo categorizes customers into three tiers. Velo Standard: Average daily balance of $0 to $25,000; $25 monthly account maintenance fee; includes free ACH transfers, a free Visa card, and five free ATM withdrawals per month.

Velo Gold: Average daily balance of $25,000 to $100,000; no monthly fee; a dedicated account manager; 10 free international wire transfers per month; and no fees for ATM withdrawals abroad.

Velo Premier: Average daily balance of over $100,000, no monthly fees, with a Chinese-speaking account manager, family account management, and cross-border structuring consulting.

The key change is that the Standard plan wasn’t ”canceled,” but rather ”subject to a fee increase.” The $300 annual fee acts as a deterrent for small sellers, but it doesn’t pose a barrier for sellers with annual revenue in the millions of dollars.

02

Velo and local accounts are two different things

Many mainland clients have not distinguished between Velo and Huamei local accounts, and the gap between the two will continue to widen in 2026.

Velo: Mainland residents can open an account remotely via video call without having to travel to the U.S.; the process takes 1 to 2 weeks. It supports ACH transfers, wire transfers, and linking U.S.-based payment methods. However, it does not require an SSN, a U.S. credit history, or eligibility for U.S. interbank clearing.

Huamei Local Account: The account holder must travel to the U.S. to attend an in-person interview at a branch. The account is opened on the same day and allows you to apply for an SSN, build U.S. credit, and apply for credit cards and mortgages. This account is suitable for those planning to live in the U.S. long-term and considering immigration.

The two can coexist. Mr. Guo opened a local account while on a business trip to the U.S. and continued to use Velo to handle his daily U.S. transactions after returning. Velo is a ”tool for processing U.S. transactions,” not a ”full-featured U.S. bank account.”

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03

How to Choose Among the Three Types of Cross-Border Professionals

Category 1: Small sellers with annual turnover of less than $500,000. Use Velo Standard; the annual management fee of $300 is acceptable, but maintain an average daily balance of at least $10,000 to avoid being classified as an ”inactive account.” Alternatively, you can switch to multi-currency accounts with no monthly fees, such as PingPong or Wanlihui.

The second category consists of medium-sized sellers with annual turnover ranging from $1 million to $5 million. These sellers can upgrade directly to Velo Gold; by maintaining an average daily balance of at least $25,000, they enjoy no monthly fees, free cross-border wire transfers, and a Chinese-speaking account manager. Sellers with larger capital reserves can open additional Huamei local accounts.

The third category consists of large sellers with annual turnover exceeding $5 million. The “three-part package”—Velo Premier, China-U.S. local accounts, and offshore structures—along with consulting on family accounts and cross-border structures, are the services most in demand among high-net-worth clients.

04

The Three Most Common Pitfalls

Pitfall #1: Depositing large amounts of USDT via Velo. Velo does not accept direct USDT deposits; if the U.S. dollar wire transfer received after the sale is flagged as ”suspicious cross-border funds,” starting in the second quarter of 2026, a complete statement of the source of funds will be required for any single transaction exceeding $50,000 in non-wage income.

Mistake #2: Mistaking Velo for a U.S. mortgage account. Velo does not offer FDIC deposit insurance, does not require an SSN, and cannot be used for U.S. mortgages or auto loans. Any broker who claims that ”Velo can be used for U.S. mortgages” is misleading you.

Pitfall #3: Providing a fake address when opening an account remotely. In 2026, Velo will conduct a ”second video verification” for false addresses; once detected, the account will be closed immediately and any remaining balance will not be refunded. Providing a real address in mainland China along with a backup contact address in the U.S. actually makes the KYC process go more smoothly.

From a compliance perspective, please note the following: Non-U.S. tax residents holding a Velo account must submit a W-8BEN form to certify their tax residency status; annual cross-border transactions exceeding $100,000 must be reported to the IRS; and individual domestic receipts or payments exceeding $5,000 must be reported on the international receipts and payments declaration form.

05

Portfolio management is the answer

For Velo after the 2026 tiered restructuring, the question isn’t whether it’s still worth using, but rather how to combine it with other accounts.

Small and medium-sized sellers should combine Velo, local accounts, payment processing platforms, and Hong Kong bank cards into a single portfolio and manage them in tiers based on the intended use of funds—this is more stable than relying solely on any one card. Velo is a tool; it’s only valuable when used in the right context.

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