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What is a virtual bank account?

Time to read: 3 minute(s)

If you have been using the services of banks for a long time, you probably remember the times when you had to visit one of the bank branches to make even the smallest transaction. Such a connection to the physical location of the bank took a lot of effort and time. This is true not only for individuals, but also for legal entities, whose every minute costs a lot.
Today, the value of time has increased even more, and according to the scheme described above, banks serve only individuals. Companies are increasingly choosing to open a virtual bank account.

How to open a virtual bank account?

To open a virtual bank account, all you need to do is to go to the website of your chosen financial institution and fill in an online application, and then make a deposit. If the online application is not the best option for you, you can always print out this application form, fill it out manually, and send it by mail. To replenish the deposit you also do not have to visit the bank branch, everything is done online. Be prepared that the bank may require some additional documents to successfully open a virtual account.

Virtual accounts are not only opened by banks.

If you do not want to contact the banks, but you need a virtual bank account, you can always open it PayDo. The company offers its services worldwide. Through this account, individual and business customers can send and receive money instantly, keep and exchange currencies. Companies, banks, and business partners can send funds to your account in multiple currencies.

How to deposit money into virtual bank account?

If you have a PayPal account, you can easily transfer money from it to your virtual account. The same is true for your bank accounts. In addition, you can use internet banking to deposit money into your account.

How to withdraw money?

You are probably wondering the answer to this question: if the bank is virtual, it does not have any ATMs, how can I get my money from a virtual account?
For this purpose an ATM of any other bank will be perfect. But first of all, you need to find out what commission you will pay for cashing the money. In this case, the financial institution that owns the ATM, will charge the commission.

Pros and cons of the virtual bank account

A virtual bank account solves many issues related to doing business and the benefits of opening it are obvious.
The advantages of virtual accounts include the following:

  • More advantageous conditions. Virtual banks do not have physical branches and do not incur many of the costs that traditional banks have. For this and other reasons, they may provide their customers with more favorable conditions on a savings account (1-2 percent more than in traditional banks) and lower service fees.
  • When you work with virtual banks, you don’t have to adjust to their schedule. You make transactions on the account when it’s convenient for you. This is very convenient, because not every employee nowadays has the opportunity to visit a bank branch in person.

Speaking of disadvantages, it is worth highlighting:

  • Lack of personal communication. Visiting a traditional bank, you can establish contacts with managers, which in the future will help you get an additional loan or agree on the best terms for you other banking products. In virtual banks, you will certainly not be able to do this.
  • No ATMs. As you know, when you withdraw money from an ATM at the bank that issued your card, you either pay a minimum commission or do not pay at all. With other banks, users often have to pay a higher commission. Yes, online banks also have several ATM networks with more loyal commissions, but it is not a fact that you will find these ATMs nearby.

If you’re thinking of opening a multi-currency e-banking account and merchant account to run your own business as efficiently as possible without overpaying for a number of important services, just contact PayDo. We guarantee fast and secure payments as well as transactions in over 200 currencies with 300+ alternative payment methods.
PayDo always tries to do the best for our customers. If you have any issues, please contact us, or register a free account now.

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