Virtual Accounts Overview
Streamline your business payments with unique, system-generated virtual accounts. Automate payment reconciliation, enhance security, and organize transactions for individual customers or specific use cases. Learn how virtual accounts work.
Virtual accounts are unique, system-generated bank account numbers that facilitate secure and organized payment processing between businesses and their customers. Virtual accounts are purpose-specific bank accounts that act as intermediaries in financial transactions. They can be configured for one-time use or ongoing payment relationships, providing flexibility for different business scenarios.
Virtual accounts are created and assigned to customers or transactions according to your business logic. When a customer needs to make a payment, they transfer funds to the virtual account you've provided them. Our platform automatically matches incoming funds to the correct virtual account and sends webhooks to your system in real-time, completing the payment cycle seamlessly.
Supported Countries & Coverage
Virtual account processing is available in the following countries:
Use Cases
Virtual accounts excel in business-to-business scenarios where transaction amounts are significant and proper documentation is crucial. Each virtual account can be associated with a specific invoice, project, or client, creating an automatic audit trail that simplifies reconciliation. Large corporations use virtual accounts to manage payments from multiple departments or subsidiaries while maintaining clear financial separation.
Digital wallets and fintech platforms use virtual accounts as core banking infrastructure, providing each user with unique account numbers for deposits and withdrawals without traditional banking overhead. This enables 24/7 operations, instant account provisioning, and scalable management of millions of accounts while maintaining bank-grade security and regulatory compliance through API-driven architecture.
For international transactions, virtual accounts denominated in local currencies help businesses avoid foreign exchange complications and reduce cross-border payment fees. Customers pay in their local currency to a local virtual account, while merchants receive funds in their preferred currency.
For remittances, they facilitate cross-border transfers with better exchange rates, enabling recipients to access funds through multiple channels while providing complete transaction tracking and regulatory compliance automation.
How It Works
The process of using virtual accounts through Localpayment involves the following steps:
- Create Virtual Accounts: The merchant initiates the process by creating virtual accounts through Localpayment. Each virtual account is uniquely generated to facilitate individual tracking.
- Virtual Account Returned: Localpayment automatically generates a unique virtual account and returns the account details back to the merchant.
- Assign Virtual Account: The merchant assigns the virtual account to the Sub-merchant/Beneficiary, enabling accurate payment attribution and reconciliation on their end.
- Payment Instructions: The Sub-merchant/Beneficiary forwards the payment instructions to the Payer, providing the necessary details to complete the transaction to the assigned virtual account.
- Payment to Virtual Account: The Payer initiates a payment to the assigned virtual account. This transaction is routed through Localpayment, ensuring funds are directed correctly without the need for additional identifiers.
- Payment Confirmation to Merchant: Localpayment sends a payment confirmation to the merchant with key transaction details for financial management and reconciliation.
- Payment Confirmation to Sub-merchant/Beneficiary: The merchant forwards the payment confirmation to the Sub-merchant/Beneficiary, closing the transaction loop.
Prerequisites
Before creating your first virtual account, ensure you have completed the following essential steps:
Implementation Guide
Implementing virtual accounts for payment processing not only simplifies transactions but also enhances security and operational efficiency. Below are some of the latest best practices and trends to consider when implementing virtual accounts on your platform.
Generate unique virtual account numbers via API for individual customers or transactions.
Create virtual accounts without API integration using dashboard tools or batch uploads. Ideal for one-time setups.
Retrieve current status and details of any virtual account. Monitor active accounts and verify account configuration in real-time.
Provide payers with the correct beneficiary details returned in the Get Virtual Account Status API response to process payments seamlessly. View country-specific instructions to ensure accurate and compliant payment execution.
Temporarily suspend or reactivate virtual accounts without deleting them. Perfect for pausing payments during disputes or customer service cases while preserving account data.
Permanently deactivate a virtual account. This prevents all future payments to it but retains its full history. The action is irreversible. Use for accounts no longer needed; create a new one to resume operations.
Configure webhooks to get instant payment confirmations when customers transfer funds. Automatically update order statuses and trigger fulfillment processes upon successful payments.
Learn how Virtual Accounts can be used (Per Transaction, Per Submerchant, Per User, Omnibus) and how to reconcile incoming payments programmatically.
Virtual Account Operations
Once a virtual account is successfully created and active, various operational workflows can be managed throughout its lifecycle to optimize payment collection and customer experience. The available operations depend on the account status, transaction requirements, and specific business needs. Here's an overview of the key operational capabilities:
| Country | Status | Enable / Disable | Delete | Webhooks |
|---|---|---|---|---|
| Argentina | ✔ | ✔ | ✔ | ✔ |
| Brazil | ✔ | ✔ | ✔ | ✔ |
| Chile | ✔ | — | — | ✔ |
| Colombia | ✔ | ✔ | ✔ | ✔ |
| Mexico (SPEI) | ✔ | ✔ | ✔ | ✔ |
| Mexico (TEF) | ✔ | — | ✔ | ✔ |
| Mexico (SPID) | ✔ | — | — | ✔ |
| Peru | ✔ | ✔ | — | ✔ |
Updated 15 days ago