Virtual IBANs (vIBANs), also known as dedicated funding sources, are unique virtual IBANs assigned to individual customers. Their purpose is to streamline reconciliation and reduce errors in incoming payments. Since each vIBAN is assigned to a single customer and not shared with anyone else, it provides certainty about the source of the payment.
Virtual IBANs are designed for businesses that handle high volumes of low-value transactions, helping them automate payment processing and reconciliation. If you are considering accepting card payments to automate receivables, vIBANs offer a more cost-effective alternative.
When funds are paid into a vIBAN, they automatically land in the linked sub-account. However, vIBANs are purely used as a reference for reconciliation purposes and do not act as standalone bank accounts.
When the matching method for a customer is set to ‘Dedicated Funding Source’ (from the RequestPay page), payments are automatically reconciled against invoices using one of the following methods:
Perfect Match: Based on transaction amount or payment reference. You can define the required percentage match.
FIFO (First In, First Out): The earliest received payment is applied to the oldest outstanding invoice. This is useful when customers do not provide exact reference details but still make regular payments.