Virtual Accounts

Virtual Accounts (also known as Virtual IBANs or VIBANs) are externally addressable representations of payment accounts. They do not hold funds directly but instead link to physical bank accounts (Master Accounts) where the actual funds are settled.

They typically serve three main purposes in payment operations and account management:

• Account Reconciliation: Each Virtual Account has a unique identifier, enabling separate tracking of transactions while using a single physical account
• Treasury Consolidation: Maintain separate Virtual Accounts for tracking while consolidating actual funds in Master Accounts
• Third-Party Account Services: Provide account services on behalf of customers using dedicated Virtual Accounts

Configuration Options

Virtual Accounts can be set up in different ways depending on their intended use. The following sections describe the available configuration parameters:

Currency

Single Currency

A Virtual Account can be linked to one Master Account for operations in a single currency. In this configuration, all incoming and outgoing transactions are processed in the Master Account's currency.

You can use the physicalAccountsList parameter in the order request to ensure ordered VIBANs are linked to a single currency.

For example, linking a Virtual Account to a EUR Master Account creates a EUR-only Virtual Account where all transactions, regardless of the original currency, are converted to and settled in EUR.

Multi-Currency

A Virtual Account can be linked to multiple Master Accounts to handle different currencies. Each Master Account operates in a single currency, and transactions are automatically routed to the appropriate Master Account based on the transaction currency.

One Master Account must be designated as the default for handling currencies not associated with any linked Master Account.

For example, a Virtual Account linked to EUR, GBP, and USD Master Accounts can process transactions in these currencies directly, while transactions in other currencies are converted to the default Master Account's currency.

The system supports 24 currencies across all Master Account types.

Account Classification

Virtual Accounts can be configured to operate in three distinct ways, each serving different operational needs and determining how transactions are processed and displayed to counterparties.

1. Reconciliation Accounts

   • Operates under your name
   • Supports both incoming and outgoing transactions
   • You appear as the payer/beneficiary

2. Payments On Behalf Of (POBO)

   • Operates under your customer's name
   • Supports both incoming and outgoing transactions
   • Includes full COBO functionality

3. Collections On Behalf Of (COBO)

   • Operates under your customer's name for incoming transactions
   • Outgoing transactions display your name
   • Restricted to collection operations

Account Format Representations

Each Virtual Account is available in multiple localized account formats, enabling seamless integration with domestic payment systems across different regions. A single Virtual Account can be represented in the following formats:

• Luxembourg
• Denmark
• United Kingdom
• Germany
• Poland
• Australia
• Sweden
• Liechtenstein

This multi-format capability means your Virtual Account can appear and function as a local account in each supported region while maintaining centralized reconciliation and control.

Note: Some local account formats are subject to eligibility criteria. Please contact your relationship manager for details about specific format availability.