The benefits of virtual IBANs
POSTED ON: 12 Jun, 2018
Whatever business you are doing, smooth payments are always vital. It doesn’t matter if you’re working locally, in SEPA area or outside Europe – you want your payments to cause as little headache as possible.
Traditional banking solutions while doing business often seem too complicated. You have to deal with long, complicated onboarding process and invest a lot of time an effort to maintain your banking relationships. Not to mention complex reconciliation if you’re dealing with multi-currency multi-jurisdictional solutions in your company. So what comes as a real life saver is the ability to use Virtual IBANS.
A virtual IBAN is a phantom account number on the international numbering standard which allows incoming payments to be rerouted to a different, physical account. Virtual IBANs offer exact same advantages as traditional real IBANS, while eliminating the costs of setting up and managing accounts. They offer much more efficiency, control and overall simplicity in the whole process. From a user’s point of view, they look and work exactly like real IBANs. The main advantage is that a company can have a number of virtual IBANs and have all the payments made to them rerouted to the same master account. This mimics the effects of having multiple bank accounts, without the expenses of all the banking fees and hassle to maintain them.
Virtual IBANs eliminate manual reconciliation and allow companies to centralise transaction management. It’s a great tool to optimise workflow and decrease administrative tasks. Transactional fees are reduced for both incoming and outgoing transactions, which has significant impact, especially if you are dealing with international business. But the best part is the ability to have a master account and allocate an individual IBAN for each of your client, so that client X would only be processing transactions through IBAN X. Each payment then can be identified instantly and the reconciliation, analysing of patterns done easier than ever.
Interested? Get in touch with us! We have an advanced Unique IBAN solution, which will help you simplify and scale your business. Our IBAN solution is fully API-equipped and can facilitate your business without any human interaction. We provide APIs for instant IBAN generation, as well as instant execution of outgoing payments from your own back office. Try our IBAN solution and significantly optimise your processes!