A virtual IBAN (International Bank Account Number) is a temporary or alternative bank account number that is not tied to a specific physical bank account. Instead, virtual IBANs are created by banks or financial institutions for specific purposes such as facilitating international payments, segregating funds, or streamlining accounting processes.
Virtual IBANs are typically used by businesses that need to manage large volumes of payments or funds in multiple currencies. These accounts can be used for incoming and outgoing transactions, and transactions can be processed faster and more efficiently than traditional banking methods.
In contrast, a regular IBAN is a unique identifier used to identify an individual bank account. This account number is usually tied to a specific bank account and is used for routine transactions such as receiving payments, paying bills, or transferring money between accounts. A regular IBAN is issued to an individual or company by their bank or financial institution and is linked to their physical bank account.
The key difference between a virtual IBAN and a regular IBAN is that virtual IBANs are temporary, while regular IBANs are permanent. Additionally, virtual IBANs can be used for specific purposes, while regular IBANs are used for everyday banking needs.
This page was last updated on June 19, 2023.