In this guide we will walk through the steps required to simulate an Incoming Payment Detail associated to a Virtual Account.
Compared to having a physical bank account, virtual accounts do not hold funds, but they still have their own account number and routing number. From the outside, these virtual accounts will look just like an actual bank account, but they function instead as a tagging and referencing system. Often described as sub-accounts or dividers within a single bank account, virtual accounts help aggregate funds without the complexity of storing and organizing them. They can be used to manage transactions for individual customers or vendors, or to segment funds for different use cases of your company.
An incoming payment detail is a notification that a payment will be made against your account. This occurs when an external party pays you without you initiating the transfer. The incoming payment detail does not represent the settled transaction, only a notification that a transaction will be posted at a later time.
Imagine your business manages the funds of your users. You have virtual accounts for each one of your users representing their account. A user may want to wire you money in order to fund their account. Modern Treasury allows you to simulate this flow by creating an incoming payment detail and attributing it to a virtual account.
When creating an incoming payment detail with “Gringotts Wizarding Bank”, a bank transaction will also be created as if the payment settled and was processed by a real bank.
Updated 4 months ago