If your business invoices clients in other countries, a virtual account lets them pay you like a local supplier. It gives you bank details in another country's currency, so clients make a domestic transfer instead of an international wire. The money lands in your balance in that currency. At Verto, these are called Local Accounts. Here is how they work, what they cost and what to check, told through one business example.
How a virtual account works
A virtual account is a set of local account details issued in your business's name, for example a UK sort code and account number for GBP or a US routing and account number for USD. Your payer uses those details in their own banking app, as they would for any domestic payment.
Behind the scenes, the payment travels over that country's own clearing system rather than SWIFT. The funds then arrive in the matching currency balance in your account. You did not have to open a bank account abroad, and the payer did not have to send an international payment.
The term "virtual" refers to how the details are issued, not to the money. The balance is real, held in your name, and you can keep it, convert it or pay it out.
Business example: one software company, three currencies
Imagine a software company in Manchester with clients in Texas, Berlin and Lagos. This is a composite scenario, not a real Verto client. Each month it sends three invoices, and each one creates a different problem.
The Texas client pays in US dollars by international wire. The payment passes through intermediary banks, arrives days later and is short by deductions nobody can explain. The studio's finance lead spends an afternoon chasing it.
The Berlin client wants to pay in euros by SEPA transfer, as it does with every other supplier. Without euro details, it has to set up an international payment, which needs extra approval from its own finance team. The invoice slips into the next payment run.
The Lagos client would happily pay in naira, but the studio has nowhere to receive it. So the client buys dollars first, which costs it more and slows everything down. Over time, that friction makes the studio harder to work with, and it has started losing quotes to suppliers who are simpler to pay.
What changes with Local Accounts
With Verto Local Accounts, the studio gets local details for each currency and puts them on its invoices. Each client then pays over its own domestic rail:
USD over ACH, the US network that, according to Nacha, carried 33.6 billion payments in 2024.
EUR over SEPA, the euro-area bank transfer scheme.
GBP over Faster Payments, the UK's real-time bank transfer system.
NGN over NIBSS Instant Payment, Nigeria's real-time interbank transfer service.
KES over PesaLink or RTGS in Kenya.
Each payment lands in the matching balance in the studio's Multi-currency Wallets. The dollars stay dollars until the studio decides otherwise. It can pay a US software vendor from the USD balance, or convert to GBP when the rate suits.
In most cases, the studio does not need a local entity in the US, Germany or Nigeria to receive these payments. Verto issues the details in the studio's name, subject to eligibility checks for each currency.
What a virtual account costs
Because payments travel domestically, the intermediary deductions that eat into international wires do not apply. The amount your client sends is the amount that arrives.
On Verto's published pricing, domestic collections in the local currency are free. International collections cost 0.3% on the Free plan for UK- and US-registered companies, with lower rates on paid plans. Plan prices depend on where your company is registered; see pricing for UK businesses for current figures.
What to check before you choose a virtual account
Not every virtual account suits every business. Before you choose a provider, check these five points:
Currencies and rails. Does it cover the currencies your clients actually pay in, over their domestic rails?
Dedicated or shared details. Some currencies come with details unique to your business; others use a shared account and a payment reference. Both work, and funds reflect automatically once the payment is received.
Who can pay in. On Verto, other businesses can pay into your Local Account by default. Payments from individuals are available for selected industries, such as travel and education, subject to approval.
What happens after the money lands. Can you hold the balance, convert when you choose and pay suppliers from it?
Regulation. Verto is authorised by the UK Financial Conduct Authority as an Electronic Money Institution (firm reference number 901073).
When a virtual account is not the right tool
A virtual account is built for bank transfers. If your clients want to pay by card at a checkout, you need a card acquiring service instead. If you pay suppliers far more often than you collect, start with how you hold and send money, then add collection details where clients ask for them.
For the wider picture of how cross-border money moves, read our guide on how cross-border payments work.
Your next steps
Getting paid like a local starts with five practical moves:
List the currencies your clients already pay you in, and which they would prefer.
Open a Verto account and request Local Accounts in those currencies.
Add the new details to your invoice template, one set per currency.
Decide which balances you will hold and which you will convert as payments arrive.
Check your first payments arrive in full, then retire your international wire instructions.
Ready to put it into practice? Get started with Verto, or speak to sales if you'd like a walkthrough.
Get local account details for your business with Verto
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