What Is a Virtual IBAN and How Do You Get One?

A business can sell to customers in another country long before it needs an office or a traditional bank account there. What it may need sooner is a clear set of bank details those customers can use to pay.

A virtual IBAN provides an International Bank Account Number through a virtual account. With Veem, a business opens a Virtual Bank Account in its name and receives the banking details associated with it. A UK account, for example, can provide an IBAN and BIC/SWIFT code alongside a sort code and account number. The business can then share the appropriate details with customers, marketplaces, and other payers.

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What is a virtual IBAN?

IBAN stands for International Bank Account Number. It is a standardized format for identifying an account in payment instructions.¹

A virtual IBAN is an IBAN issued through a virtual account. To the person sending a payment, it functions as an IBAN: they enter the details their payee provides.

For a business using Veem, the distinction is practical: the Virtual Bank Account is what you open; the IBAN is one of the receiving details you can share with someone paying you. The account can also provide other details for other payment methods.

How do virtual IBANs work?

Consider a U.S. business that invoices customers in the UK. It opens a UK Virtual Bank Account with Veem and receives payment details in its business name. When it sends an invoice, it gives the customer the instructions that match the way that customer intends to pay.

The process has three parts:

1. Get the account details. The UK account provides a sort code and account number for local GBP payment instructions, as well as an IBAN and BIC/SWIFT code for international payment instructions.
2. Share the appropriate instructions. The business adds those details to an invoice or provides them to a customer, marketplace, or business partner.
3. Receive and track the payment. The payer sends the transfer, and the business can see the incoming funds in its Veem account.

The payer does not need to know whether the business opened its account online or at a branch. They need accurate details for the transfer they are making. That is also why an IBAN should not be treated as a replacement for every local account or routing number.

What are the benefits of a virtual IBAN for businesses?

Open an account without a local branch or entity

Receiving payments in a new market should not require building a full banking presence there first. Veem’s Virtual Bank Account application is digital: a business can apply without visiting a branch or establishing a local entity in the account’s issuing market. The account is issued in the business’s name.

For a U.S. company working with UK customers, that means it can establish UK receiving details without making a traditional UK bank account-opening process the first step in serving that market.

Avoid account-opening and monthly fees

Veem Virtual Bank Accounts are free to open and have no monthly account fee. That is useful when a business wants receiving details in another market but does not need an additional traditional bank account with ongoing maintenance costs.

This does not mean every transaction is free: fees apply when funds are transferred or converted. Traditional bank-account pricing also varies, so the useful comparison is what each option costs for the payment activity your business actually expects.

Give customers clear ways to pay

An international customer may need an IBAN and BIC/SWIFT code. Another payer may use local account details. A Virtual Bank Account gives a business the relevant instructions to put on an invoice or provide to a marketplace, rather than asking every payer to work out how to send money to an account in another country.

Keep track of incoming payments

Once an invoice is sent, your finance team still needs to know whether it has been paid. Veem lets you view and track incoming payments in your account, making it easier to follow up on outstanding invoices and plan what to do with funds after they arrive.

Each Veem Virtual Bank Account is issued in a single currency. Businesses receiving payments in several currencies can use accounts in different supported currencies; the Veem Wallet serves the separate purpose of managing multiple currencies within a wallet.

How do you get a virtual IBAN online?

With Veem, the IBAN comes with the Virtual Bank Account that provides it. You do not open the account and then generate a separate IBAN. Here’s how to get started:

1. Start with the payment you want to receive. Identify the currency and how your customers will pay. If you need UK receiving details, for example, a GBP Virtual Bank Account is the relevant starting point.
2. Apply for a Virtual Bank Account. Create or sign in to your Veem account, select Virtual Bank Account, and complete the online application.
3. Complete business verification. Provide the business information and documents requested during the application, such as registration information and details about the people who own the business.
4. Review your receiving details. Once the account is approved, its payment instructions appear in Veem. Check which details apply to local payments and which apply to international transfers before adding them to an invoice.
5. Share the details with payers. Give customers, marketplaces, or business partners the instructions that match the payment they plan to send.

Who can benefit from a virtual IBAN?

A virtual IBAN is useful when the banking details a business already has do not suit the payments it wants to collect.

A professional-services firm invoicing clients abroad can put its receiving details directly on invoices. An online seller can provide account details to a marketplace for payouts. A U.S. business expanding into the UK can give customers UK payment instructions without first opening a traditional bank account there.

The common thread is not the size or industry of the business. It is the need to make payment straightforward for the customer while giving the business a practical way to receive and manage the funds.

Virtual IBANs vs. traditional IBANs: Which is right for you?

“Virtual IBAN vs. traditional IBAN” is useful shorthand, but both are IBANs used in payment instructions. The real decision is whether to get IBAN details through a Virtual Bank Account or open a traditional bank account that has an IBAN.

If your main objective is collecting payments from customers in another market, a Virtual Bank Account may give you the receiving details you need. If you also need financing or regularly deposit cash and checks, a traditional bank account may be more suitable. Some businesses use both for different jobs.

For a fuller comparison, read Virtual Bank Account vs. Traditional Bank Account: What’s the Difference?

Frequently asked questions about virtual IBANs

Are virtual IBANs safe?

Yes. Veem protects its Virtual Bank Accounts with business verification, two-factor authentication, encryption, and transaction monitoring. Veem also works with regulated financial partners to provide the accounts and safeguard funds. A virtual IBAN is not a less secure version of an IBAN; what matters is the protection behind the account.

Can a U.S. business get UK IBAN details?

Yes. U.S. businesses can apply for a Veem GBP Virtual Bank Account, and Veem’s UK account instructions include an IBAN and BIC/SWIFT code alongside a sort code and account number. The business receives its details once the account is approved.

The bottom line

A virtual IBAN gives your business payment details to share with customers abroad without opening a traditional bank account in every market. With Veem, you apply online for a Virtual Bank Account and receive the account’s IBAN and other relevant instructions after approval.

The goal is not simply to have another account number. It is to make it easier for customers to pay you and easier for your business to receive and manage the payment.

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