What is a virtual account, and how is it different from a bank account?

A virtual account is a set of account details, such as a US account and routing number or a European IBAN, that a regulated provider issues to you so others can pay you. From the payer's side it behaves like any bank account. Behind it, the provider holds the funds and routes them according to your instructions.

How it differs from a traditional bank account

• It is issued by a payments provider working with partner banks, rather than opened at a bank branch.
• It is usually linked to a destination, such as converting incoming funds to a stablecoin and sending them to a wallet.
• You do not typically get a cheque book, overdraft or lending products.
• Opening one requires identity or business verification, just like a bank.

Whose name is on it?

This is the most important question. Some services give you account details where the beneficiary is the service itself, and identify you by a reference. Your money then sits in their account. Others issue details where the beneficiary is your company. With HermodPay, the account details are issued through Bridge in your name, and HermodPay never holds the funds.

What happens when someone pays you

1. The payer sends ACH, wire or SEPA to your account details.
2. The provider receives the funds and records the payer name and reference.
3. The funds are converted, if your account is set up to convert, and delivered to your chosen destination.
4. You see the payment in your activity with a receipt.