Key Takeaways
What is a virtual IBAN?
A virtual IBAN is a digital, non-physical bank account number, linked to a primary account, enabling high‑risk merchants to receive and send cross-border payments without maintaining multiple physical accountsIdeal for high‑risk merchants
Virtual IBANs support businesses in industries like gambling, crypto, and forex that face difficulties opening traditional accounts .Simplified setup and compliance
Businesses can onboard quickly, using multiple virtual sub‑accounts for clients, currencies or product lines, with ease of KYC/AML complianceOperational advantages
Provides streamlined transaction management, real-time reconciliation, faster settlements and enhanced security through cloud-based, encrypted environmentsCost and resource efficiency
Avoids the administrative burden and expense of maintaining many international bank accounts—one primary account serves multiple virtual IBANs, reducing fees and complexityCross‑border utility & growth enabler
Simplifies accepting payments worldwide in multiple currencies, bridging regulatory barriers and supporting B2B digital expansion
What is a Virtual IBAN Account?
A virtual IBAN account is simply an online bank account that uses a unique International Bank Account Number (IBAN). This allows businesses and individuals to send and receive payments from anywhere in the world without having to worry about foreign exchange fees.
Businesses use IBAN accounts for a number of reasons, including:
- To save on international transfer fees: when you make a payment to or from an IBAN account, you can avoid costly international bank transfer fees.
- To streamline global payments: IBAN accounts make it easy to send and receive payments from around the world. This can be a big time-saver if your business deals with international clients or suppliers.
- To protect against currency fluctuations: with an IBAN account, you can hold multiple currencies in one account. This can help mitigate the risk of losing money due to currency fluctuations.
Who needs a Virtual IBAN Account?
Any business or individual that needs to make or receive payments from around the world would benefit from having a virtual IBAN account. This includes businesses in high-risk industries.
Benefits of Having a Virtual IBAN Account
There are a number of benefits that come along with having a virtual IBAN account. These include:
Account setup is easier
You won’t need to go through the process of setting up a physical bank account. This can be a time-consuming and complicated process, especially if you’re not familiar with the banking system in your country.
Keep reading because we’re about to give you a full rundown on how to set up your very own virtual IBAN account.
You can send and receive payments from anywhere in the world with a Virtual IBAN
This is especially beneficial for businesses that operate internationally. A virtual IBAN account makes it easy to send and receive payments in multiple currencies without having to worry about foreign exchange fees.
Let’s say you work for an online gaming company, and you have customers all over the world. With a virtual IBAN account, you can easily process payments in Euros, pounds, or any other currency, without incurring hefty foreign exchange fees.
Increased functionality
Virtual IBANs have many more functionalities than traditional bank accounts. For one, you can use them to send and receive payments in multiple currencies. You’ll also have access to a wider range of financial services, including international money transfers and merchant services. Plus, you can manage all of your accounts from one central platform meaning you’ll have a better overview of your finances.
Access to other financial services
With a virtual IBAN account, you’ll also have access to other financial services like international money transfers, multi-currency accounts, and more. This can come in handy if you’re a business owner who frequently travels overseas or if you have clients in multiple countries.
Better Security
Another big benefit of having a virtual IBAN account is that it offers better security. That’s because your account information is kept in redundant, encrypted servers. So, if one server goes down, your information will still be safe and sound.
Plus, the end-to-end transparency and segregation offered by virtual IBAN accounts make it easier for businesses to comply with Anti-Money Laundering (AML) regulations.
How can your business utilise a virtual IBAN account?
There are a number of ways that your business can utilise a virtual IBAN account. Here are just a few:
Receiving payments from international clients and suppliers
If you do business with clients or suppliers in other countries, it’s likely that you’ll need to send and receive payments in multiple currencies. A virtual IBAN account makes this easy and affordable.
Processing online payments
If you run an online business, a virtual IBAN account can be a great way to process payments quickly and easily. This is because virtual IBANs are connected to the global SWIFT network, which allows for fast and secure transactions.
Managing international payroll
If you need to pay employees in different countries, a virtual IBAN account can make the process a lot easier. You can easily send payments to employees in any currency without having to worry about foreign exchange fees.
Sending and receiving international payments
A virtual IBAN account is perfect for businesses that need to send or receive regular international payments. With a virtual IBAN account, you can save money on foreign exchange fees and make faster, more secure payments.
Alternatives to Virtual IBAN Accounts
While a virtual IBAN account is a great solution for businesses that operate internationally, it’s not the only option available. Here are a few other alternatives to consider:
Traditional Bank Account
A traditional bank account is a good option for businesses that don’t need to send or receive payments from overseas. That’s because traditional bank accounts typically don’t offer the same level of flexibility and security as virtual IBAN accounts. However, if you’re a high-risk merchant, you may have difficulty getting a traditional bank account.
PayPal
While Paypal offers a number of benefits for businesses, it’s not a good solution for international payments. That’s because Paypal charges high fees for currency conversions and doesn’t offer the same level of security as virtual IBAN accounts.
Stripe
Stripe is a good option for businesses that need to process payments in multiple currencies. That’s because Stripe offers low-cost international transfers and supports a wide range of currencies. However, Stripe doesn’t offer the same level of security as virtual IBAN accounts.
Cryptocurrency
Cryptocurrency is an alternative to traditional currency that can be used for international payments. Cryptocurrency is decentralized, which means it’s not subject to the same regulations as traditional currency. However, cryptocurrency can be volatile, and the value of your transfers may fluctuate.
How to Open a Virtual IBAN Account in Europe as a high-risk company
There are a number of reasons why you might want to open a virtual IBAN account in Europe. Maybe you’re a business owner who wants to process payments in multiple currencies without having to worry about foreign exchange fees. Or, maybe you’re a high-risk business that has trouble qualifying for a traditional bank account.
Step one: Find a suitable provider
There are a number of companies that help businesses like yours open a virtual IBAN account within Europe, and it’s important to find one that’s willing to onboard your business. This can be tricky if you’re considered high risk or if your company is based outside of Europe.
Your best bet is to start by doing some research online. You’ll want to consider things like:
- The provider’s reputation
- The fees they charge
- The countries they operate in
- The account limits
Step two: Discuss your requirements & agree on pricing
Once you’ve found a suitable provider, you’ll need to discuss your requirements and agree on pricing. This is important to ensure that you’re getting the right level of service for your needs.
Step three: Apply for an account and submit KYC
Most providers will require you to apply for an account and submit KYC (know your customer) documents. This is to comply with anti-money laundering regulations.
Once you’ve found a suitable provider, you’ll need to discuss your requirements and agree on pricing. This is important to ensure that you’re getting the right level of service for your needs.
Step four: Activate your account
Once you’ve received approval for your IBAN account in Europe, the final step is to activate it. This can be done by following the instructions provided by your chosen banking provider.
Step five: Start making and receiving payments
Now that your account is all set up, you can start making and receiving payments in multiple currencies without having to worry about foreign exchange fees!
Final Thoughts
And that’s all there is to it! As you can see, opening a virtual IBAN account in Europe is a pretty simple process, unless you’re considered high risk. So if you’re looking for an easy and convenient way to send and receive payments from abroad, a virtual IBAN account could be the perfect solution for you!
At Capitalixe, we specialise in helping our clients who are often deemed as “high risk” find the perfect banking and payment solution for their needs. We do this by leveraging our network of over 100+ financial institutions, EMI’s and banks worldwide. Our goal is to help save you time and take the pain of finding trustworthy and suitable solutions away from you.
Feel free to reach out to us for a complimentary consultation. We will be more than happy to help you.
