Virtual accounts are an innovative way of managing and monitoring incoming payments from customers or subsidiaries. The application processes this by giving each customer a unique account number or identifier to sort and assign the transaction amount from different physical bank accounts. The monitoring feature of a virtual account allows users to clearly identify the customers who have paid which is a great benefit while running a business.
For both domestic and international markets virtual accounts offer a range of benefits.
1. Save cost with limitless virtual accounts
There are only a limited number of actual bank accounts that a company can have. Therefore, using virtual accounts reduces cost, dish, and administration. Unique virtual accounts for each customer help create individual IDs with a way to share details. Companies can also create virtual UPI IDs with these accounts.
2. Smoother flow of transactions
When using virtual accounts transactions are possible from all banks allowing a smooth flow of cash and ensuring that the business is not hampered in any way. As said before, the easy shareability of the account details makes these types of accounts easier to use as well as keep them comparably secure enough like the traditional bank accounts.
3. Easier Management
Virtual accounts can be managed very easily. These can be activated easily and even be deactivated any time the company wants. This helps users to get better control of the funds distribution. Transfers getting initiated for these disabled accounts automatically get rejected.
4. Faster transactions
Virtual …Read More