Virtual Business Bank Accounts with IBAN in Europe

Open European virtual IBAN account for businesses

Opening European business account can be a complex procedure and repatriating revenues from Europe can alsobe a challenge. With a Euro bank account you can receive funds in Europe and have them immediately forwarded to your master account. This eliminates the need for physical European bank accounts.With virtual bank accounts with IBAN in Europe companies can reduce their number of physical bank accounts to one central “master” account. Cross border transactions can be made efficiently and you can comply with regulatory barriers in the European market. Virtual IBAN accounts offer a multi-jurisdiction and multi-currency solution.

Cost of Opening Virtual Euro Business Bank Accounts

Opening Euro bank accounts is straightforward and can be as simple as filing in an online form. Although opening virtual bank accounts is low cost everything comes with a price – especially in banking. If it seems too good to be true it probably is and you should seek advice before setting up a network of virtual accounts and virtual IBAN accounts.

Apply for a Virtual Bank Account Opening in Europe

Difference between a Virtual Account and a Virtual IBAN

Open Virtual Accounts – Businesses have a physical master bank account through which they can open numerous virtual accounts also called shadow accounts or subaccounts. All of the company’s funds are kept in the master account but can be allocated to virtual accounts each intended for a specific purpose, client, business unit etc.This way funds can be allocated without physically segregating them. The virtual accounts neither have nor need an IBAN as all transactions are made directly via the main master account using the master account’s IBAN.

Open Virtual IBAN Accounts – Businesses can have a number of virtual IBAN accounts each with its own unique IBAN and each linked to the physical master current account. Each virtual IBAN account is allocated to receive payments from a specific source. The funds are then routed to the central master bank account which has its own IBAN. When funds arrive in the master account the source can be immediately identified by the virtual business account’s unique IBAN.Virtual business IBANs function exactly like real IBANs but when payments are made into the virtual IBAN funds are routed immediately to the company’s linked physical bank account which has its own “real” IBAN.

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Understanding IBAN In detail…

IBANs (International Bank Account Numbers) are part of an international banking system which makes global transactions easier. IBANs refer to a specific bank account whereas BIC codes (Bank Identifier Code) refer to a specific bank.With an IBAN international transactions can be made with reduced risk of transcription errors as the receiving bank account is immediately identifiable no matter where it is in the world.

The advantages of virtual IBANs and virtual accounts are similar:

  • Same advantages as a conventional business bank account but with more convenience.
  • Easily set up.
  • Time saving.
  • Facilitates Straight Through Reconciliation.
  • Virtual business bank accounts can be allocated to any purpose by denoting specific individual payers, business units, legal entities etc.
  • Funds are kept separate within the master account thanks to the unique IBAN number given to each virtual business bank account.
  • By using a different virtual IBAN account for each paying customer you can easily track receivables.
  • The virtual bank account assignment can easily be changed at any time.
  • With a system of virtual accounts incoming and outgoing transactions can be centralized.
  • Eliminate reconciliation issues with all funds rerouted to the physical master account.

Reduced manual post-processing actions required and fewer cash management products required.

Reduced bank and administration costs virtual accounts occupy no actual space so overhead and labor costs are reduced.

How to get Business Virtual Account with Debit Card

Getting a business debit card is not a complicated process but you will need to have a clean Chexsystem report and a good credit record especially if you are a small business. Having a business debit card that is connected to your virtual bank account can make payments simpler and save time; they can also be used to monitor employee expenses. Always read the terms, conditions and fee schedule of any business debit card.

Simple Steps to Obtaining a Business Debit Card:

To get a Business depbit card you first need to open a virtual Euro bank account and then apply with all the required documentation and information – business license, minimum deposit etc. Each bank has its own requirements for opening a business account (requirements differ to those for a personal account) and there are different types of business accounts so make sure you choose the one that best suits your business financial needs.

  • Once you have your business bank account you can apply for your business debit account. Sometimes the procedure is as simple as checking a box on the bank’s website. The bank will then confirm your details and continue with the procedure.
  • You will be asked to choose a PIN number or a PIN number will be provided.

Approval of your card can be instant or take up to three days

Top Digital Banks and Virtual bank accounts in Europe

Europe’s Best Online Banks

In your search to find the best online bank in Europe start by seeking out the financial institutions that will receive and make payments internationally via wire transfer; manage your business banking and provide you with a debit card. Most importantly Europe’s best online banks allow you to do your banking remotely. An added bonus is if your chosen online bank has an app for making speedy money transfers which you can use whenever and wherever you want. Feel free to consult with us about the best business bank account for your corporate banking in Europe.

Why Choose One of Europe’s Online Banks

Internet banking is the most popular form of banking in Europe today with 70% of adults in Europe using online banking sometime during each month. Over the last 12 years, the number of people doing their banking online in Europe has doubled and continues to grow. In some European country, statistics show 90% of the population does at least some of their banking online. Use of internet banking can be as simple as checking your bank balance and transaction history to making transfers and investments. In fact, internet banking has become extremely sophisticated and today it is possible to do most banking tasks online such as applying for a loan; researching and purchasing financial products and real-time tracking of your spending.

The challenge Facing Europe’s Online Banks Today

With the increased use of online banking and the constant change of customer needs Internet banks need to offer increasingly advanced services. Online banks need to predict the customers’ future needs in order to stay ahead of the competition. Today Europe’s online banks need to provide customers with full-solution banking which must include support services; be user-friendly and charge low or no fees. The online banking market includes Electronic Money Institutions and conventional banks but although EMIs offer online banking their services are usually limited to currency exchange and transfers.

What are Europe’s Best Online Banks

Finding an online bank in Europe that meets all your corporate banking needs can be a challenge. To make things easier for you we have narrowed down the choices to a list of the top online banks in Europe in 2019/2020. This list is compiled of digital-only online banks that offer a full banking solution. The banks in this list don’t just offer you a banking app like traditional banks but rather give you a full-solution for remote banking and no need to visit the bank branch. This list of Europe’s best online banks was ranked according to the merit of their online services and not according to any additional services offered at physical branches. If you need guidance in choosing the best online bank in Europe for your company feel free to contact us for advice.

Top Europe Online Banks

Revolut – Based out of London Revolut is one of the top Fintech companies. Their alternative to traditional banking includes peer-to-peer payments, a contactless card with up to 1% cashback, prepaid cards and it supports several cryptocurrencies. You can set up  your Revolut Euro account in minutes; set up a monthly budget; get instant spending notifications and even buy insurance from your Revolut app. With Revolut you can set up recurring payments; freeze and unfreeze your card from the app and activate location-based security. You can make ATM withdrawals in 150 currencies and send funds in 26 currencies. Already with over 2 million users Revolut gets 6,000-8,000 new users each day. Revolut aims to provide a “fair and frictionless platform for use around the world.” Since 2017 Revolut has offered current accounts where customers have a personal IBAN and personal EUR IBANs.

N26 – N26 originated in Germany and was launched in the UK in November 2018; N26 announced plans to make its US debut at the Money2020 Conference. This digital-only bank offers customers all the traditional services including a checking account with debit card; cash withdrawals from ATMs; a rewards program and money transfers. The bank is marketed as the “bank for real people.” Features of the N26 banking app include providing spending insights; setting payment limits and locking your card via your phone. With N26 Euro account you can do all your transactions from your phone and make no-fee transactions from anywhere in the world. Sign-up is simple and N26 has a comprehensive support service. With over a million customers it is one of the fastest growing mobile banks in Europe.

Monzo – Monzo is a mobile-based Euro bank that started off in 2015 with just prepaid debit cards then expanded to offer current accounts. Today with over a million customers they are the fastest growing bank in the UK. Monzo markets itself as “a new kind of bank” and rightly so as it has features you don’t find at every bank. Monzo has integration with IFTTT allowing your apps and devices to work together with popular services like Alexa, Amazon and Uber. This British digital bank can provide customers with a real-time breakdown of spending, rapid money transfers and real-time notifications. Other features include Apple Pay; joint accounts; Investec; a gambling block function and bill sharing.

B – B was founded by the UK based Clydesdale Bank & Yorkshire Bank Group and focuses on personal banking. The services offered by B include interest on current accounts holding a balance of up to 2,000GBP; instant savings accounts; contactless debit cards and credit cards and a 2 day overdraft period. You can access B’s services through Apple Pay; Android Pay or Touch ID.

Fidor – Fidor is a customer-led digital bank with innovative financial products and services like crypto-trading; crowdfunding and one-minute bank transfers. This Germany-based online bank offers current accounts where the interest rate is determined by Facebook “Likes.” In addition, there is a “Smart Community” forum for users to discuss financial issues. Among the perks of using Fidor, there are low-cost SEPA fees and minimum interest rates.

First Direct – First Direct is UK-based; they have been around since 1989 and their services are comprehensive including loan applications online; investments and insurance bought online. With a First Direct account you can request free paper copies of statements; print up to 6 years of statements; pay bills; send money and set up standing orders all through a user-friendly interface.

HelloBank – The services offered by this Internet bank based in Belgium include loans; current and savings accounts; credit cards; brokerage services; pre-paid cards and insurance. They have accounts geared towards 18-27-year-olds and accounts for over 28-year-olds.

Loot – This UK-based digital banking app offers current accounts and a credit card with PFM-style savings goals. Loot offers personalized features to track your finances.

Starling – Starling is a UK-based mobile-only online bank offering an at-a-glance account overview; savings goals; real-time notifications when you spend or receive a payment and PRM tools. They pride themselves on tough security using Touch ID. Starling was voted the Best Business Banking Provider for 2019.

Monese – This UK bank focuses on current accounts; money transfers and prepaid debit cards. Monese supports GBP and Euro; gives service in 11 languages and is available in 20 nations. This online bank prides itself on quality service and has a straightforward application process. With Monese you can track your account activity in real-time; get instant notifications when money moves to or from your account; set budgets and get statements at any time.

In addition to those financial institutions, there are many more banks in Europe such as:

Santander Euro Account, Barclays Euro Account, HSBC Euro Account, Starling Euro Account

Euro Bank Accounts with Debit Cards

Having an Euro account means that you can smoothly, swiftly and easily make euro payments; receive funds in euro and manage your account online. With a euro account you can hold multiple currencies in the same account; this is why it is also called a “borderless account” or a “multi-currency account.”

European Bank Account Online Fees and Rates

Transfers in and out of a euro account all use the mid-market exchange rate. The transaction fees are transparent and low. For this reason an Euro account is preferable to a regular bank account or money exchange service where the mid-market rate is not always used; exchange rates are exaggerated and transaction rates are high.

Who should have an Euro bank Account?

  • Those traveling frequently in the Eurozone (get a debit card to use for direct euro payments and make euro ATM withdrawals while in the Eurozone).
  • Freelancers that are paid in euro or make payments to suppliers in euro
  • Entrepreneurs that receive funds in euro or make payments in euro
  • Expats living in a country where the currency is euro
  • Those who want to hold multiple currencies in one account, including euro
  • Businesses that make regular Euro payments to staff, office suppliers, utilities etc.
  • Those wanting to make transfers in euro to friends and family within the Eurozone
  • Businesses located outside the Eurozone that have customers and suppliers in the EU.
  • Any business that receives and sends Euro to and from Europe.

Questions to Ask when Opening an European bank account

Choosing whether to open an account with a traditional bank or a digital bank can depend largely on a comparison of the charges and fees. To make an informed decision you should find out the cost of transferring funds in different currencies or countries. If you make regular or large transfers in euro then the optimum solution is often a euro account. The most important thing you need to find out before opening a new account at any bank is the charges and fees for your specific account. Fees and charges differ from bank to bank and can include a monthly set fee, fees for transfers, and fees for receiving and sending money. The charges may depend on the number of transactions you make within the month or year. Another important point is whether your account allows you to hold several currencies simultaneously.

Choosing a Euro Account in the UK

Today many regular brick-and-mortar banks in the UK offer euro accounts. There are newer banks, foreign exchange companies and FinTech companies that now compete with traditional banks. These “challenger” options may offer a more attractive alternative to your high street bank with lower fees and charges.

If you opt to stick with a traditional bank then enquire at your local bank where you have an existing account. Many of the traditional banks will only offer euro accounts to preexisting customers. Other banks may have certain conditions that you have to meet in order to open a euro account. For example you may be required to maintain a minimum balance or show proof of a steady income above a minimum income threshold.

Advantages of an Euro Bank Account Online

  • Maintain an account with a euro balance
  • Keep multiple currencies in your euro account
  • Send and receive euro
  • Save on the exchange rate if you are transferring funds from your euro account in euro
  • If you regularly receive funds in multiple currencies you can save on the exchange rate
  • Now is the time to open a euro account while more and more providers are making it easier and cheaper to open Euro accounts.

Last but not L east – Better Safe than Sorry

Remember that in the event of a bank or financial institution going bankrupt only the first £85,000 of your money held by that bank is protected. However this covers all of your holdings at the bank. So if you had a large amount of money held in several accounts at the same bank and that bank went bust you would only be covered for £85,000 overall and not £85,000 for each account. For this reason it is often recommended that if you have a large amount of money in multiple currencies you should spread your funds across several financial institutions.