Virtual Account (vIBAN)
A routing pointer or 'pass-through' address that maps to a master physical account, primarily used to automate payment attribution.
Key Details
- A virtual account is a routing layer — it has a unique identifier (like an IBAN) but no actual bank account underneath
- All virtual accounts map to one or more master physical accounts, enabling transaction-level segregation without the cost of individual bank accounts
- Common uses include marketplace escrow (each seller gets a virtual account), client money segregation, and multi-entity cash management
- Reconciliation is simplified because each virtual account receives only its designated transactions, eliminating the need to parse a shared account statement
- Provided by Banking-as-a-Service platforms like Railsr, ClearBank, and Modulr, typically via API for programmatic account creation