Virtual accounts are today's breakthroughs to make financial transactions easier and more efficient. With a virtual account, you don't have to bother entering your account number and a series of other information when you want to make a payment.
This payment method is widely used in various online buying and selling platforms such as e-commerce. Even though a virtual account (VA) at first glance looks like a bank transfer, in fact, the two payment methods are quite different.
What are the differences between the two and other interesting things you need to know about virtual accounts? Let's discuss one by one in the following article.
Definition of Virtual Accounts
A virtual account is a fintech (financial technology) product that allows users to make payments quickly and efficiently. Functioning as an electronic payment instrument, VA consists of a series of unique codes in the form of numbers specially created by financial or banking institutions.
So far, almost all banks in Indonesia have a virtual account feature. In this way, you can easily make purchases without the need to change bank accounts.
In short, a virtual account is a virtual bank account number provided by the seller as the number for the purpose of the payment transaction.
Types of Virtual Accounts
Virtual accounts offer a series of conveniences for both parties, both the sender and recipient of funds. The types of virtual accounts currently in use include:
1. Fixed Virtual Accounts
The first type is a fixed virtual account. This one type allows the customer to define his own virtual code. That way, VA users don't need to generate a new code every time they make a payment. For example, when you want to top-up your e-wallet balance. You can use the same virtual code without needing to use the new code.
2. Non-fixed Virtual Accounts
Unlike the type of fixed virtual account, the non-fixed virtual account cannot be determined by yourself. The virtual account number that appears in this type is randomly generated by the system and can only be used once. You can generally find this type when you want to make a payment transaction in e-commerce.
How Virtual Accounts Work
The way virtual account numbers work may be relatively different for each bank. However, virtual accounts generally work in the following way:
1. The seller will provide a special virtual account number for the buyer
2. The buyer will copy the payment code or VA code that you get from the purchase application
2. Open the m-banking application then select the 'Virtual Account' payment method
3. Enter the VA code that you got earlier
4. The payment amount will be displayed on your screen automatically
4. If you feel it is correct, enter your m-banking pin to complete the transaction
5. Payment will be confirmed in a few minutes
6 Benefits of Virtual Accounts for Business
Virtual accounts have a number of benefits that their users can enjoy. Are as follows.
1. Detect Payments Automatically
Every incoming transaction will be detected automatically without the need to check them one by one or record it manually. Both the seller and the buyer will benefit from this technological breakthrough. No need to bother taking photos of proof of payment or doing the manual recording.
2. Easy and Safe
Without the need to bother recording account numbers, bank codes, or other information, you can make payments directly by copying the virtual code that you get. Existing transactions will be automatically recorded in your name with a predetermined nominal.
3. Transactions Anytime and Anywhere
Enough with a stable internet connection, all transactions can be easily done anywhere and anytime. Very flexible right?
4. One Account for All Types of Transactions
With just one account, all existing transactions can be processed immediately. This of course can save the time and energy that you have. You don't have to bother changing m-banking or borrowing the accounts of your friends and acquaintances. So, differences in bank accounts are no longer a problem.
5. Allows For Financial Reconciliation
Every transaction that occurs will be recorded automatically by the system and you can see it in the account mutation section. With this convenience, the data matching process will be easier to do.
6. Almost No Additional Cost
Transfers via virtual accounts can be said to be cheaper or even not charged at all. For example, when you make transactions in the form of payments in e-commerce, generally you will not be charged an additional fee. As for payments to e-wallets, an admin fee of IDR 1,000 is usually deducted.
The Difference Between AVirtual Account and an Ordinary Transfer
Launching from money.kompas.com, the most obvious difference between a virtual account and an ordinary transfer lies in how it works.
Virtual accounts allow you to make transactions without the need to enter account numbers, beneficiary names, or transfer amounts. You simply copy the existing code and confirm payment.
In addition, the existence of a virtual account makes it easier for recipients to identify incoming fund senders. This can happen because virtual accounts are able to record incoming transactions automatically. As a result, neither the buyer nor the seller will bother with proof of payment or bookkeeping.
The security offered by virtual accounts is also appreciated. This is because the virtual account number that appears is temporary (not permanent) and personal (specifically made for one user), so that existing transactions can run safely and efficiently.
Unlike the account number which is permanent and will continue to be the same as long as the account used is active.
Payment Method Using a Virtual Account
How, so far you are quite sure about the convenience and security offered by a virtual account?
Launching from various existing sources, here's how to pay using a virtual account for certain types of banks.
Image Source: Pexels/Zen Chung
1. How to Use a Virtual Account at Bank BCA
Through BCA ATMs
- Enter your BCA ATM card and PIN
- Select 'Other Transactions'
- Select 'Transfers'
- Select 'BCA Virtual Account'
- Enter your destination virtual number
- Type in the amount you want to pay (if the existing payment amount is not entered automatically)
- Perform payment validation
- Payment complete
Via m-BCA
- Open the BCA Mobile application
- Log in with your username and password
- Click 'm-Transfer'
- Select 'BCA Virtual Account'
- Confirm payment by entering your BCA pin
- Payment complete
Via KlikBCA Individual
- Open the KlikBCA Individual application
- Enter your user ID and pin
- Click 'Transfer Funds'
- Select 'Transfer To BCA Virtual Account'
- Fill in the nominal to be paid (if the existing payment amount is not entered automatically)
- Perform payment validation
- Payment complete
Through KlikBCA Bisnis
- Open the KlikBCA Bisnis application
- Click 'Transfer Funds'
- Select 'Transfer List' then click 'Add'
- Enter the virtual account number then save
- Select the 'Fund Transfer to Virtual Account' menu
- Next, select the source of funds account and virtual account account
- Fill in the nominal to be paid
- Perform payment validation
- Select 'Fund Transfer' then click 'Authorize Transaction'
- Proceed by selecting the transactions to authorize
- Payment complete
Via M-BCA (Sim Card Menu)
- Click m-Banking
- Choose m-BCA
- Then click m-Payment and select 'Others'
- Type TVA
- Enter your BCA Virtual Account number and pin
- Enter the nominal to be transferred then validate
- Payment complete
2. How to Use a Virtual Account at Bank BNI
Through Bank BNI ATMs
- Visit the nearest BNI ATM
- Enter your card and pin
- Select the 'Other' menu
- Select 'transfer' and the type of account to use
- Select 'Virtual Account Billing' then confirm the transfer amount to be sent
- Payment complete. Don't forget to save proof of existing transactions
Through BNI Mobile Banking
- Open the BNI Mobile Banking application
- Log in with your user ID and password
- Select the 'Transfer' menu then click 'Virtual Account Billing'
- Select an account and enter the virtual account code that you got
- Confirm payment with your pin
- Payment complete
Through iBank Personal
- Visit BNI's official website at ibank.bni.co.id
- Log in with your user ID and password
- Select the 'Transfer' menu then select 'Virtual Account Billing'
- Enter the virtual code you got
- Make sure the nominal on the screen matches the amount you have to pay
- Confirm payment by entering your pin
- Enter the authentication token code
- If the payment is successful you will get a notification
3. How to Use a Virtual Account at BRI
Through BRI Bank ATMs
- Visit the nearest Bank Mandiri ATM
- Enter your card and pin
- Select the 'Other Transactions' menu
- Then click 'Payment'
- Select 'BRIVA'
- Enter the virtual account code that you got
- Proceed with the payment process
- Enter your pin to confirm the existing payment
- Payment successfully made
Through Mobile Banking
- Open the BRI mobile banking application
- Select the 'Payment' menu
- Then select 'BRIVA'
- Enter the existing virtual account number
- Make sure the existing nominal is appropriate
- Confirm by entering your pin
- The transaction was successful
Through Internet Banking
- Visit Bank BRI's internet banking site
- Log in using your user ID and password
- Select the 'Payment' menu
- Then select 'BRIVA'
- Enter the virtual account number that you got
- Enter the password and m-token
- Payment successful
4. How To Use AVirtual Account at Mandiri
Through Mandiri ATMs
- Select the 'Pay/Buy' menu
- Then press 'More'
- Select 'Multi Payment'
- Enter the payment/agency code number (70002)
- Enter merchant code (264)
- Then enter the payment code
- Double-check if the existing transactions are correct
- Confirm payment by entering your pin
Through e-Banking
- Select the 'Pay' menu then click 'Multipayment'
- Enter the 'Service Provider' menu then select Doku
- Enter merchant code (264)
- Enter the payment ID code or Pay Code
- Confirm payment by entering your pin
- Transaction completed
5. How to Use a Virtual Account at CIMB
Through CIMB Bank ATMs
- Visit the nearest CIMB Bank ATM
- Enter your card and pin
- Select the 'Payment' menu
- Click 'Virtual Accounts'
- Enter the virtual number and payment code
- Click 'OK' to continue the payment
- Confirm payment by entering your pin
- Transaction completed
Via Octo Click
- Open the Octo Click application
- Select the 'Pay Bill' or 'Pay Bill' menu
- Select the source account and payment type
- Then click 'Virtual Accounts'
- Enter the existing virtual account number
- Confirm payment if deemed correct
- Transaction completed
Sobat BFI, that was the discussion regarding Virtual Account Numbers: Definition, How it Works, and Benefits. The presence of a virtual account (VA) as one of the technological innovations makes it easy for people to make financial transactions safely and easily.
You can make the best use of this payment method as an alternative to existing payment methods. Even so, keep checking the nominal that appears on your screen before making a payment, and always be aware of the fraud that can occur at any time.
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FAQs
What is the advantage of virtual account number? ›
Using virtual accounts allows us to better segregate specific activity, making it easier to report and account for cash movement. It also reduces the number of accounts that need to be confirmed for audit purposes.
How does a virtual account number work? ›A virtual account number works as a substitute for your actual credit card number. It interacts with the merchant while the real account number stays out of sight. From the processing side, these temporary bank account numbers are treated exactly like credit cards.
How do I pay with a virtual account number? ›How should payment be made to a Virtual Bank Account Number? Funds can be remitted to these virtual account numbers through Internet Banking, Branch cash/cheque, NEFT or RTGS modes.
What are the cons of virtual card? ›What are the disadvantages of a virtual debit card? Limited use: The main disadvantage of having a virtual debit card is that it can only be used for online transactions. So, if you want to use it for making purchases in-store or withdrawing cash from an ATM, you are out of luck!
How do I use a virtual bank account? ›A virtual bank works when a customer, first of all, opens an account with the virtual bank. This means the individual would have to fill out an online application and make a deposit. The customer can submit the form online or simply print it and mail it.
How do I withdraw money from my virtual account? ›Due to the fact that virtual Visa cards have no form of physical appearance, therefore you are not able to withdraw your money at any ATM point. But you do have another way to get your money from a virtual Visa card account by making a transfer to a physical card account and then just going to the ATM to withdraw.
What are the benefits of virtual credit card? ›Virtual credit cards authorise access to your credit quickly and without using a physical card. Some virtual cards even offer point-earning rewards and are a safer alternative when making online purchases. If your card is compromised, virtual credit cards can be voided easily and quickly.
What is the difference between virtual account and current account? ›Virtual accounts function similarly to standard bank accounts. They have their own account numbers, streamline incoming and outgoing transactions, and help users maintain their balances. The most notable difference is that virtual accounts cannot actually hold money.
Are virtual accounts safe? ›Whether this Virtual Payment option is secure? Yes, Virtual account is a secured type of payment since it leverages existing payment capabilities through NEFT / RTGS / IMPS / SC Online.
What are the advantages and disadvantages of virtual? ›| Advantages | Disadvantages |
|---|---|
| Cost Savings | Lack of Trust |
| Increased Productivity | Reduced Team Collaboration |
| No Unnecessary Meetings | Social Isolation |
| Healthy Work-Life Balance | Hidden Technological Costs |
What are the most important benefits of using virtual? ›
- increased memory retention and decreased cost.
- compliance with travel and security regulations.
- high video resolutions and ultra-realistic graphics.
- collecting users' personal data for marketing purposes.
How do virtual card payments work? Virtual card payments utilize a randomly generated 16-digit number sequence that works like a credit card, but is a completely digital payment. This means that there is no plastic credit card number to protect, and the virtual card can only be charged one time for a specified amount.
Can you pay a bill with a virtual card? ›Virtual cards can be used just like you would a physical card. In addition to online purchases, it's utilized for contactless payment in stores by adding it to Apple Pay or Google Pay.
Can I transfer money from virtual card to bank account? ›You can transfer your virtual Visa funds to your bank just like you would transfer them from a regular card. The Visa card has a card number, expiration date and security code, just like a plastic card. If the issuer allows transfers to bank accounts, you should be able to do that by logging in to your online account.
Are virtual card numbers a good idea? ›Virtual card numbers and online security
Not only are they convenient, but virtual card numbers are one way you can help protect yourself from credit card fraud. And they also can help limit how much information is accessible to fraudsters if your information is compromised in a phishing scam or a data breach.
Virtual credit cards essentially give you a leg up over fraudsters, especially if you're using a single-use number. Not only will it mask your actual account number—it'll also be invalid after one transaction, rendering it useless to hackers.
What is the benefit of virtual debit card? ›Benefits of a Virtual Debit Card
Virtual debit cards are considered to be very secure because they are protected by both a mobile app password and a digital platform. Unlike physical debit cards, virtual debit cards are not at risk of being stolen, lost, or duplicated, and they cannot be easily copied or counterfeited.
...
The service can also be accessed anywhere and almost anytime making it very suitable for new generation of consumers.
- Instant Global payments. ...
- Greater Flexibility. ...
- Attractive Promotion Offer and Passive Income. ...
- No worries when you lose your card. ...
- Environment friendly.
As for deposits and withdrawals, a virtual bank is connected to FPS, the instant, cross-platform transfer system. Clients can transfer funds in and out through this channel. Furthermore, depending on the service offered by the virtual bank, clients can also use an ATM to make cash deposits or withdrawals.
How does a virtual bank card work? ›A virtual card is a unique digital card, linked to your existing debit or credit accounts. It draws funds directly from your linked account, so you don't have the hassle of having to top up the balance.
Can a virtual card be used at an ATM? ›
4. Can I withdraw cash from ATMs with a virtual card? Yes, the virtual card allows you to withdraw cash from ATMs that support contactless use. You will need a digital wallet (e.g. Apple Pay, Google Pay) and second, a virtual card PIN code, which you will find on the LHV mobile app or internet bank.
Can you withdraw cash from an ATM with a virtual card? ›You can use a digital wallet at an ATM that uses NFC technology to conduct cardless transactions. To use your digital wallet, you tap your phone against the contactless symbol on the ATM, and your phone's digital wallet will open. From there, select the card you'd like to use, and enter your PIN.
What is the meaning of virtual bank account? ›What is a virtual account? A virtual account is a non-physical/ online bank account created virtually. By adding just a few basic details like the customer's name, mobile number, and email address, you can set up a virtual account for your clients/ customers and reconcile inward payments seamlessly. Open Money.
How do I get cash from my virtual credit card? ›You cannot get a cash advance through a virtual credit card. Virtual credit cards are just an option offered with some credit card accounts, adding an extra layer of security against fraud by masking a card's sensitive information. They can only be used for online, and some over-the-phone purchases.
What is the purpose of virtual card? ›It's specially designed for safer online shopping and scan to pay purchases. You can also load it on all your favourite apps such as Uber, Netflix, takealot.com and MrD for quick and seamless purchases and payments.
How do I spend my virtual credit card? ›Once you reach the checkout step of an online payment, enter the unique credit card information generated by the card issuer for one-time or recurring use. The purchase detailswill be logged into your connected spending app or dashboard, depending on which card provider you are using.
How do I open a virtual account? ›- Sign up. Share your contact info & a few business details.
- Complete your KYC. Complete KYC & get an online bank account with a credit card. Start transacting immediately.
- Bank Limitlessly. Assign virtual accounts & quickly reconcile payments, do expense management, accounting reports, payment gateway APIs & a lot more.
Answer: Only three banks in the United States offer virtual credit cards to their customers. They are Citibank, Bank of America, and Capital One.
What are examples of virtual banks? ›Examples of popular virtual banks include Mercury Bank, Starling Bank, and N26—all of which provide their business and personal customers with virtual bank accounts.
What is the benefit of virtual account in NPS? ›It also eases the mode of deposit of voluntary contributions by the Subscribers. A Subscriber only needs to have a Virtual ID (Account) with Trustee Bank to use D-Remit. The Virtual Account with the Trustee Bank can be used only for remitting NPS contributions.
What is the benefit of a virtual card? ›
Virtual credit cards authorise access to your credit quickly and without using a physical card. Some virtual cards even offer point-earning rewards and are a safer alternative when making online purchases. If your card is compromised, virtual credit cards can be voided easily and quickly.
What are virtual numbers used for? ›A virtual phone number is a telephone number that isn't bound to a physical location. Virtual numbers can be used to make or receive calls on any phone, such as VoIP desk phones, cell phones, or softphones. It's perfect for employees in the office, or those who work at home.
Can you withdraw money from a virtual card? ›Can I withdraw cash from ATMs with a virtual card? Yes, the virtual card allows you to withdraw cash from ATMs that support contactless use. You will need a digital wallet (e.g. Apple Pay, Google Pay) and second, a virtual card PIN code, which you will find on the LHV mobile app or internet bank.
Can you get money off a virtual card? ›If your virtual card is a virtual debit card or prepaid card, since this card account is linked to a current account or checking account, you can transfer money easily from a virtual card account to any other bank account that you would like to do.
What are the charges for NPS virtual account? ›A contribution charge equal to 0.10% of the contribution amount is levied on all NPS contribution with Rs. 10 as the minimum charge and Rs 10,000 as the maximum charge per contribution. This is charged over and above the payment gateway charges for using a debit/credit card to make your online NPS contribution.
Which NPS account is better for tax benefit? ›Exclusive Tax Benefit to all NPS Subscribers u/s 80CCD (1B)
An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act. 1961.
Yes, online banks are safe. As long as an online bank is insured by the Federal Deposit Insurance Corp., it will offer the same coverage as the FDIC-insured bank down the street. FDIC covers up to $250,000 per account for each individual customer.
How do virtual card payments work? ›How do virtual card payments work? Virtual card payments utilize a randomly generated 16-digit number sequence that works like a credit card, but is a completely digital payment. This means that there is no plastic credit card number to protect, and the virtual card can only be charged one time for a specified amount.
How do I transfer money from my virtual card to my bank account? ›You can transfer your virtual Visa funds to your bank just like you would transfer them from a regular card. The Visa card has a card number, expiration date and security code, just like a plastic card. If the issuer allows transfers to bank accounts, you should be able to do that by logging in to your online account.