A virtual IBAN (International Bank Account Number), or vIBAN, is a phantom current account issued by a bank that permits the account holder to receive an incoming payment and reroute it to a real bank account. Essentially, it simplifies transaction processes and increase control without having to spend the time and money required to set up and manage different physical bank accounts.
GloBank offers PSPs, MSBs, ISOs and Gateway providers multi currency IBANs The virtual IBANs available to your merchants through GloBank are sourced from a network of leading European banks. They are all active SWIFT members so you can transact live via a BIC issued through SWIFT
Virtual IBANs also offer companies better oversight of their cash flows and FX risk management. With the same functionalities as a traditional bank account, each vIBAN provides a separate statement so that the company can easily locate each incoming payment. This minimises reconciliation efforts and facilitates analysis and identification of transaction patterns.
Regulatory barriers and high transaction costs have discouraged many International Merchants from selling their goods in the lucrative European market. Two main factors complicate the process of directly repatriating sales revenue from the EU for foreign merchants.
First, ecommerce platforms can charge high fees to pay out directly to international bank accounts, and foreign exchange fees further increase the cost.
Second, opening a business bank account in Europe can be a difficult, expensive and lengthy process for foreign businesses due to strong anti-money laundering (AML) and Know Your Customer (KYC) regulations. Both methods are costly, especially for smaller merchants. When merchants initiate transfers on their own, they have no choice but to pay the high fees charged by retail banks and ecommerce platforms.
If you would to find out more about our IBAN solutions, or to see if there is a specific currency account you require to take or send payments, contact us today, and speak to one of our specialist brokers.