Account

Virtual Account is one of digital payment / currency holding methods that are often used by the public. Its practicality and security system are two of the reasons customers love to use it.

What is a Virtual Account?

A Virtual Account is a digital payment method through an account that is created virtually for each customer. To make payments, customers will be referred to their own Virtual Accounts.

A Virtual Account consists of a unique user ID number. It means that there will be no Virtual Account number that is exactly the same. So, each transaction can be identified automatically for different users. When the transaction is complete, they do not need to send a transfer receipt anymore. Virtual Account ID is bent to the user's wallet address.

How Virtual Accounts work

Keep in mind that the way a Virtual Account works is different from a regular savings account.

In order to make transactions from a regular savings account, customers must input the required data manually, such as the destination account number and the transfer amount. At the end of the process, they still need to send the transfer receipt to the receiver.

Meanwhile, a Virtual Account is much simpler than that. By simply selecting the Virtual Account option as the payment method, a payment code will be sent automatically. Then, customers only need to click 'Pay’ and the transaction is complete.

Benefits of Virtual Account

Besides giving more convenience for customers, Virtual Account also provides various benefits for business, which include the following:

Helping Financial Recording Virtual Account records every transaction automatically in the books. Thus, you don't need to spend more time manually checking transfer receipts and can immediately follow up on orders.

Serving Various Types of Transactions Whatever the business, Virtual Account is the right solution to increase transaction efficiency. It can be integrated on various platforms seamlessly: from applications, websites, to marketplaces.

This is the reason Virtual Account becomes one of the most important payment options, - such as crypto to fiat or fiat to crypto transfers too. Get the maximum from crypto: buy, sell or pay with crypto within minutes with a non-custodial solution that doesn’t hold your funds. Make payments in your name anonymously using a Dedicated IBAN/SWIFT account.

Making Payments at Any Time Virtual Accounts provide transaction flexibility for your customers since it is available virtually on a 24-hour basis. Therefore, a Virtual Account grants customers chances to make payments at any time.

Managing Payments Easily With Virtual Account, you can manage the amount and the distribution of money to each customer's account. It is because they have their own customer ID, helping you to sort out their transaction reports and balances easily. Furthermore, the information will be recorded in real-time. Thus, you can monitor every transaction through a single API Virtual Account.

Ensuring Customer Security When a transaction has been completed, you can set the Virtual Account number to be expired. So, you can prevent any misuse of a customer’s Virtual Account by irresponsible parties.

What is a Fiat Gateway?

If you’ve ever purchased cryptocurrencies, you’ve most likely used a fiat gateway. In fact, to buy Bitcoin, Ethereum, or altcoins, a fiat gateway is required. However, if you’re new to the concepts of how cryptocurrencies travel on the various blockchains, you’re probably wondering what a fiat gateway is. Therefore, we’re going to explain this in a simple and easy way so that you can answer the question, “what is a fiat gateway?” and implement the gateway’s functionality in your daily routine.

Despite all its downsides, such as governmental control, centralization, and money printing, fiat money remains the leading type of currency. For people who are deeply involved in the crypto sphere, it may seem like the mass adoption of top cryptocurrencies is already here; however, the data shows a different picture. According to TripleA, global crypto ownership rates are less than 4%. As such, including a fiat gateway when developing dApps (decentralized applications) still makes a lot of sense. With the help of DFI, you can easily integrate DFI fiat gateway in your day-life. DFI makes this process straightforward by using the Fiat Onramp platform.

How Fiat Gateway works?

So, what is a fiat gateway? Before answering that question, we need to make sure you know what fiat is. Fiat or fiat money is a government-issued currency (USD, EUR, GBP, CAD, etc.). Furthermore, a fiat currency is not backed by a commodity such as gold; it doesn’t have intrinsic value nor use-value. Basically, fiat money has value only because a specific government maintains its value or due to parties engaging in the exchange of a particular fiat currency agree on its value.

Even though the “Crypto-to-Fiat” term clearly emphasizes the conversion from crypto (cryptocurrencies) into fiat, it essentially refers to a fiat gateway or a fiat onramp as well. Why? Well, the thing is that a typical crypto-to-fiat gateway also serves as a fiat gateway – it enables you to convert your fiat to a particular cryptocurrency and vice versa.

Summary

Now, you know what a Virtual Account is, how it works, and the benefits for private persons or businesses that use it. You understand as well how a Virtual Account service from DFI is able to smooth transaction processes for DFI partners.