Send and Receive Payments Easily with Virtual Accounts

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A virtual account refers to a non-physical or online bank account created virtually. Details like customers’ names, mobile numbers, identity details and email addresses are all you need to set up a virtual account for your clients and customers and reconcile inward payments seamlessly. Virtual accounts comprise a unique customer ID number. 

Virtual accounts can be used to send and receive money on behalf of the settlement account, where the funds are ultimately held. This kind of account helps us to segregate specific activity, making it much easier to report and account for cash movement. Funds can be sent to these virtual account numbers through internet banking, branch cash/cheque, NEFT, etc. businesses tend to create multiple virtual accounts, each designated to a particular client, transaction, entity, or any other business interaction. 

Virtual accounts are like standard bank accounts, which means they have their account number, streamline incoming and outgoing transactions, and help them maintain their balances. 

Send and recover payments with virtual accounts

Sending money with virtual accounts is not a challenging task. However, there are certain things that you need to fill in while sending money to someone. Keep scrolling through to know the details:

Enter details of the transaction

 Include VPA of the person, amount, remarks

Authorize the transaction to start the fund transfer

Since a virtual account is a digital payment method via an account that is created virtually for every customer, therefore, to make payments, customers will be directed to their virtual account. 

Recovering money with the help of virtual accounts is as easy as sending money to someone. The steps are short and crisp for the ease of the customer or individual using a virtual account, and you can easily send and recover money with the help of virtual bank accounts. 

Benefits of virtual bank account 

Besides giving certain conveniences, virtual accounts also provide numerous benefits to a business which include- 

Aids in financial recording

Every transaction with virtual accounts gets recorded automatically in the books. Therefore, you need not spend more time manually checking transfer receipts and can automatically follow up on orders. Thus, it saves time and effort.

Serves different types of transactions 

No matter what the business is, virtual accounts are the right and one-stop solution to increase transaction efficiency. It can seamlessly integrate on various platforms: from applications and websites to marketplaces. This is why virtual accounts have become one of the most important payment options. 

Make payments at any time 

The virtual account facility provides transaction flexibility for its customers since it is available 24*7. Thus, with the help of virtual accounts, customers can make payments at any time. 

Ensures customer security 

Once a transaction is completed, you can set the virtual account number to expire. So, you can prevent any misuse of a customer’s virtual account by irresponsible parties. Therefore, it ensures complete safety. 

Manages payments easily

Virtual accounts help manage the amount and distribution of money to each customer’s account. Since all customers have their customer ID, it helps them easily sort out their transaction reports and balances. Also, the information will be recorded in real-time. Thus, you can monitor every transaction through a single API virtual account.

How do virtual accounts work?

The working of a virtual account is different from a regular savings account. In the case of a regular savings account, the customer must input the required information manually, such as the receiver’s account number, and then transfer the amount. In the end, you still need to send the transfer receipt to the receiver. 

But a virtual account is simpler than a regular savings account, you need to choose the virtual account option as the payment method, and you will receive a payment code, then the customer only needs to click on pay. There is no need to input the data manually, yet the transaction is complete. 

As mentioned above, a virtual account is simple to use and understand. Moreover, you can transfer funds to a virtual account through traditional bank transfer methods such as NEFT, IMPS, or RTGS. 

Typically, there are two ways how a virtual account works:

Virtual account made using escrow account 

These are the accounts where a third party holds the funds with the parties’ agreement. The third party holds the funds by the time they are transferred to the payee. All the parties must approve the transaction for the deal to be finalized. 

Virtual accounts added to the existing accounts

As the term implies, creating a virtual account for a current bank account is mandatory. Using the virtual account number, the vendor may recognize the payer. Its API also allows for an overview of ongoing transactions. Banks must adhere to numerous restrictions. It is such that they need to employ an attorney. However, a virtual account can handle this as well. With its advanced characteristics, it can comply with legislation.

Experience efficiency with EnKash

Enkash is a great platform that is easy to understand and provides its user with the accessibility to send and collect money virtually. Virtual accounts are most used today and are a terrific way of saving time and energy: an excellent and one-stop solution for your business that is entirely in demand nowadays. 

So, connect with them today to enjoy quick and efficient solutions!