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Virtual Account: Definition, Functions and How it Works

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The activity of buying and selling transactions cannot be avoided by humans who are identical with social life. These transactions are carried out in different ways.

Start bartering between goods for goods, exchanging with currency directly and by transfer method.

Definition Virtual Account

The transfer method is generally carried out if the seller and buyer are in a distant position. This method is part of the agreement when transacting between buyers and sellers. To make transfer payments safer and easier, you can use a virtual account.

Virtual Account or shadow account is a unique series of numbers for each different transaction. The virtual account ID is created by the Bank in collaboration with the related company to create a Virtual Account ID or Virtual Account Number for each different customer for each transaction.

So the virtual account number can only be used once. It is also possible to create a virtual account number by the customer himself. There are two types of virtual accounts.

First, fixed virtual accounts. That is, the unique number of the virtual account is determined by the customer himself.

Like customers who use their mobile number as their virtual account ID. In this way, the user does not need to enter a different number for each transaction made.

For example, this method is used by users of e-wallet applications.

As for the types that Second namely non-fixed virtual accounts. It is a virtual account number that is randomly assigned and is only used for one transaction.

Virtual Account Function

The payment function using a virtual account can be enjoyed by both the seller and the buyer at the same time. For sellers, virtual account payments make it easy for financial reconciliation. This means the seller to identify any buyers who have made payments automatically.

The function for the buyer is to use a virtual account, he does not need to send proof of payment to the seller. This makes it enough for buyers to make payments in one step, namely making transfers.

How Virtual Accounts Work

Payment using a virtual account is certainly different from using a regular transfer. If payment by transfer must match the account number with the account username and confirm proof of payment, then using a virtual account, you only need to enter the Virtual account ID.

Simply put, the seller provides a virtual account number to the buyer. Then the buyer enters the code when making a payment via an ATM machine or Mobile Banking.

After entering the number, the nominal payment will be written automatically and the proof of the transaction will be recorded automatically because each virtual account number is associated with each buyer.

That’s a review of virtual accounts, from understanding, functions and how it works. Currently, there are many companies that use virtual account services to make it easier for their customers to transact.



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