Understanding What is a Virtual Account and Its Benefits

The term virtual account or VA is not a foreign thing to our ears, who currently live in the digital era. Almost all aspects of life have been digitized, including online payments. To get to know more about what VA is and understand how it is used and its benefits, see the review below until it’s finished.

What are virtual accounts?

In short, a virtual account is a kind of artificial account which generally consists of a unique combination of numbers and/or letters to identify online transactions or payments. As the name suggests, this account is virtual or not really real which is only used once specifically by the person concerned. So, one account is only intended for one user so it cannot be used by other people.

How is it different from a normal account?

Although both can be used for financial transactions, the two are clearly different. In terms of how to transact, VA is much more flexible. This is because VA payments can be made in various ways, such as through m-banking, through various types of e-wallets and also several merchants who are involved in collaborating. Meanwhile, transactions with ordinary accounts can generally only be made at tellers, ATMs, or banking applications.

When making transactions or payments by transfer with a virtual account number, you don’t need to confirm because the VA number is unique and different for everyone. Shortly after transferring, your data will be immediately verified and the party concerned will automatically know that it is you who have made the payment.

What are the benefits?

VA is a product of financial technology or fintech whose use has mushroomed in various parts of the world. This is not without reason, because VA has a variety of benefits that will provide convenience and benefits for all parties. What are the benefits and advantages of VA? Check out the following reviews!

1. Transactions can be made anytime and anywhere

Maybe, you will feel very lazy if you have to make transactions through bank tellers or ATMs. Both are far from practical and take a lot of time, especially if you have to stand in line. By utilizing VA, you can do transactions 24 hours via smartphone. If you don’t have m-banking, you can still use e-wallet.

2. No need to confirm payment

As previously mentioned, one virtual number is only created for one user. So, after you transfer the nominal amount listed, the recipient of the funds will know by himself. For that, you don’t need to bother sending proof of transfer like when you make payments manually.

3. Transactions are more secure

Apart from being specifically for one user, the VA number is also intended for only one transaction. After a transaction is made, the unique number will expire so that this can close the gap for misuse by irresponsible parties.

4. Facilitate financial records for entrepreneurs

Not only is it beneficial for consumers who make payments, the use of virtual accounts is also beneficial for business people who run businesses. This is because VA makes transactions made by consumers recorded automatically. In addition to providing convenience, this can also save time and effort. Now, they no longer need to manually check one by one to follow up on orders.

5. Can serve various types of transactions

As consumers, maybe most people find transactions using VA on the marketplace more often. However, in fact VA can be used in various types of business transactions because it can be easily integrated across various platforms, such as applications and websites.

6. Can control the payment

By using a virtual account, one can manage the distribution of bank account accounts and the amount of payment. This is because one account can be divided into several VAs with their own balances and numbers.

This is an explanation of what a virtual account is and the various benefits it offers. It turns out that not only does it benefit consumers, VA also makes it easy for businesses to manage their business and finances. After this, what other products will be released by fintech related to online transactions?