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E-money And Virtual Bank Accounts Are Advantageous to Businesses

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E-money or electronic money is the monetary value, which gets stored digitally. It exists only on technical devices like mobile phones, smart cards, or computers and not in physical forms like coins or banknotes. Basically, e-money transactions are done through the internet using smart cards linked with bank accounts. E-money has become a prominent payment instrument, and mobiles become the core device to administer e-currency transactions.

Advantages of e-money bank account

Cost-effective

Digital e-money transaction conducted through online payment gateway is designed to secure payment and identity information of a person whose funds are transferred. The electronic financial institution has accounts at banks from which money is digitally transferred then this process is instant and extremely cost-effective.

Accessibility

E-currency has become a stable form of money, which can be used within foreign transactions. The efforts contained in the currency exchange process gets eliminated. It includes low transaction charges and is highly reliable. Sending cheque can take several days for clearance, but online allows instant cash transactions even after the bank closes or holidays. Digitalization has motivated the banking sector, and they are offering account holders better services at low transfer rates.

Security

Carrying large cash involves risk or loss or theft or can be the reason for someone’s death. With reliable online e-money accounts, you are more secure. Each transaction necessitates PIN as a security measure before completing the transfer. Other precautions, like keeping your smart card safe, needs to be ensured to avoid misuse.

Transaction records

Each e-payment has online documentation within users records and bank account. All the essential information like the name of the party, date, time and location of the transaction gets recorded. Users can access these records anytime.

Drawbacks

  • Constrains – Number of daily transactions with a specific upper limit is applied as a safety measure by the banks.
  • Hacking risk – Any kind of online transaction means your confidential data is at risk. However, following proper security code, the chances of getting hacked can be decreased.
  • False ID – Verifying ID online is impossible in contrast to physical transactions. E-money transaction depends on the cryptographic system, which is less susceptible to forgery, but numeric keys can be a little vulnerable to hacking.

Virtual bank accounts

The virtual account system is a cost-effective way of centralizing business funds. A network of virtual [shadow] accounts can be designed for your business physical bank account. The client gets your virtual bank account details, pays into it, and money automatically gets transferred into your business physical bank account.

Each client can be offered a different virtual account number to be aware of every business transaction’s incomings or outgoings. There is no physical movement of cash happening between accounts. A virtual account is managed by virtual account management software.

What is virtual IBAN account?

You can have a ‘dummy’ virtual international bank account number [IBAN] so that incoming cash can be rerouted to your ‘genuine’ physical bank IBAN account.

Advantages of the virtual account

  • Quick transaction
  • Low managing cost
  • Simple flow monitoring
  • Better cash flow
  • The enhanced account settlement process
  • Capability to change suppliers or customers assigned account numbers any time

Obviously, both e-money accounts and virtual accounts offer plenty of convenience to businesses and their clients.

E-money or electronic money is the monetary value, which gets stored digitally. It exists only on technical devices like mobile phones, smart cards, or computers and not in physical forms like coins or banknotes. Basically, e-money transactions are done through the internet using smart cards linked with bank accounts. E-money has become a prominent payment instrument, and mobiles become the core device to administer e-currency transactions.