A Virtual Account is a bank account that is defined on an underlying real account. It can receive and send payments for the underlying account while behaving towards the outside as a separate account.
Examples of Use
Virtual Accounts based on a Corporate Current Account can for instance mirror the internal accounts of a group parent-subsidiaries structure. Typically the management of the Virtual Accounts is left to the (parent)customer. This implies that the customer will be able to open Virtual Accounts, once it has a Virtual Account agreement with the bank. The bank will be responsible for the correct execution of the customer’s instructions, for the correct validation (including AML and KYC) and for the reporting to the customer and government and central bank.
A Virtual Account is a bank account that is defined on an underlying real account. It can receive and send payments for the underlying account while behaving towards the outside as a separate account. In a light version it does not have a balance; it can be seen as only a funnel through which funds can move into and out of the underlying account. In a more full version it can have its own balance, but all incoming and outgoing transactions will be mirrored in the underlying real account. A real account can have many Virtual Accounts defined on it.
Related Business Scenarios
Core Business Object
- • Open Virtual Accounts
- • Allow incoming and outgoing credit transfers (the latter is Payment On Behalf Of)
- • Allow incoming direct debits (Collections On Behalf Of) and outgoing direct debits
- • Handle Standing Orders
- • Apply Interest (if a full Virtual Account)
- • Apply fees
- • Provide Statements