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Virtual Accounts Solution

Resolve your e-collections challenges
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Virtual accounts can help resolve payor identification issues for e-collections.

What is Virtual Account Solution?

Virtual Account solution solves the problem of receivables reconciliation by providing –

  • A unique virtual account number for each payor which contains payor information and relevant beneficiary account number
  • Automatic crediting to the relevant beneficiary account with the payor details shown on the statement narrative
  • Ability to capture purpose of payments in account number itself
  • Detailed MIS and periodic alerts available to facilitate faster reconciliation

Key Features

GUARANTEED PAYOR INFORMATION

  • Payor information captured for all VA transactions

  • No reliance on branch counters to capture payor information

  • No limitation on number of dealers

FLEXIBILITY IN INFORMATION CAPTURE

  • Purpose of payments, i.e. invoice number can also be captured

  • Dynamic payor base can also be supported

  • Easy to remember alphanumeric account number

CONSOLIDATED REPORTING AND ADVISING

  • Intraday and EOD reports available for improved fund management

  • Full integration with ERP supported for auto recon

  • Periodic alerts available for both supplier and dealers

Process Flow

Step 1: Virtual account setup is done for client and new account numbers are communicated to the payors;

Step 2: Payors make RTGS/NEFT/IMPS payment using the virtual account number provided

Step 3: On receipt of RTGS/NEFT/IMPS payment, HSBC will instantaneously credit the customer’s master account along with payor information

Step 4: Virtual accounts reports can be generated at desired frequency capturing payor details and purpose of payment;

Note -

  • These reports can be delivered via H2H, Email or both. Flexibility to customize the MIS formats as per client’s requirements.
  • To facilitate reconciliation, additionally, the client can also consume the MT940/ 942 statements OR the Account Inquiry API’s.
  • Flexibility to deliver ‘dealer/payor intimation letters’ capturing the Virtual Account and Bank IFSC details
  • ‘VA-On the Fly’ solution to enable automated Virtual Account creations through H2H

Types of Virtual Accounts

Based on the kind of payor base the client has and the information required to be captured for e-collections, HSBC offers 3 different types of Virtual Account models – (ability to reject the payments if the payor information does not match with the bank records)

  • Static Virtual Accounts: Payor identification for fixed dealer network; dealer database maintained with the bank
  • Semi-Dynamic Virtual Accounts: In addition to payor, purpose of payment to be captured along with payor info; dealer database maintained with the bank
  • Dynamic Virtual Accounts:  Payor Identification for large/ dynamic payor base; does not require payor database. Specific use case for: Insurance, MFs, Telecom, e-commerce, NBFI segments.

Contact your Relationship Manager or Client Servicing Manager for further details

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