Does Each Virtual IBAN Have Its Own Balance?
If a business has ten virtual IBANs, does it have ten separate pots of money? Usually not. In most setups the money arrives in one linked payment account, and the different IBANs work as labels that organise incoming payments and automate reconciliation. Here's how it fits together.
Transcript
Does each virtual IBAN have its own balance?
Not exactly.
Let's say your business has 10 virtual IBANs.
Does that mean that there are 10 separate pots of money?
Not usually.
In most setups, such as those with Demivolt, the money arrives in one linked payment account.
That's usually called the master account or the company's account.
The different numbers help organize incoming payments and automate reconciliations.
Think separate labels, not separate balances.
Now you can integrate via API to your user interface and show those balances on your user profiles as well.
We explained the virtual IBAN basics in the video below, so make sure to check it out.
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About this episode
Say your business has ten virtual IBANs. It's easy to picture ten separate accounts, each holding its own balance. In most setups, that isn't how it works.
The money from every one of those IBANs arrives in a single linked payment account, usually called the master account or the company's account. The virtual IBANs don't hold funds of their own. What they do is tell you where each incoming payment came from or what it's for, which is what makes it possible to organise payments and automate reconciliation.
That's why the simplest way to think about them is as separate labels, not separate balances. If your users do need to see a balance of their own, you can build that view yourself: integrate via API and show those figures in your own interface and on your users' profiles.
Key takeaways
- Having several virtual IBANs doesn't usually mean having several separate pots of money.
- In most setups, payments to every virtual IBAN arrive in one linked payment account — the master or company account.
- The different IBANs help organise incoming payments and automate reconciliation.
- Think separate labels, not separate balances.
- Through an API integration, you can still show individual balances to your own users in your interface.
Related from Demivolt
What is a virtual IBAN?
The basics: an IBAN-format identifier linked to one underlying account.
Learn moreWhat is embedded finance?
Building financial features, like per-user balances, into your own product.
Learn moreBusiness accounts
Regulated payment accounts with a dedicated IBAN in your company name.
Learn moreReady to get started?
Open an account or talk to our team about your programme.