Manage virtual accounts
Required user roles: Finance manager or Finance approver
- This article is about creating virtual accounts to hold funds in different currencies. For Multi-FX conversions, go to Multi FX.
- For book transfers in the same currency, go to Transfer funds between accounts.
Overview
Virtual accounts enable you to fund and hold balances in specific currencies within Tipalti, then use those balances to pay vendors. This helps you centralize all your global accounts and balances easily in Tipalti, without the need for multiple external bank accounts.
Example use case: A UK-based company with an entity in Singapore can open and hold funds in a Singapore-dollar virtual account, and pay Singapore-based payees from that balance.
What is a virtual account?
A virtual account is a unique, digital sub-account linked to your main Tipalti account. It enables you to manage payables, transactions, and funds across different entities.
Virtual accounts offer a wider range of options and can be connected to more payment methods than a traditional bank account.
You can open multiple virtual accounts with the same or different currencies and assign them to different entities to manage separate balances.
Benefits of Tipalti virtual accounts:
- Global funding and reconciliation; no need for multiple banking relationships.
- Manage your virtual accounts like local bank accounts.
- Hold and monitor balances in supported currencies, simplifying financial operations.
Virtual account currencies
Each payment can involve up to three different currencies. Sometimes all three currencies are the same, while for other transactions they may be different.
- Virtual account currency – the currency the virtual account holds.
- Payment currency – the currency of the bill or payment.
- Payee currency – the currency the payee receives.
US payers can request virtual accounts in 20+ currencies:
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These funding currencies are supported, but require a long lead time to be enabled.
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UK payers can request virtual accounts in the following currencies:
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EU payers can request virtual accounts in the following currencies:
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CAN payers can request virtual accounts in the following currencies:
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How to open a virtual account
To open a virtual account, contact Tipalti Support. Depending on your Tipalti setup, there may be fees associated with opening global multi-currency accounts.
Once opened, you’ll see your virtual account in the Tipalti Hub under the Payments tab. For more, see View account balances.
For information on adding funds to your virtual account, go to Funding your account.
Common questions
Can I open multiple virtual accounts for the same currency?
Yes. You can open multiple virtual accounts in the same currency and assign each to a different entity or use case to manage balances separately.
Who controls the funds in my Tipalti virtual account?
You have full control. The Tipalti virtual account is designated as a safeguarding account. This allows Tipalti to manage funds on behalf of its clients without assuming legal ownership of the account. The safeguarding account is completely separate from Tipalti's operating accounts, and Tipalti cannot use the account for any purpose other than to execute payments on your behalf.
What happens if I don't have enough funds in my Tipalti virtual account?
By default, Tipalti will only pull funds from the virtual account in the same currency (e.g., GBP > GBP). If your same-currency virtual account does not have sufficient funds for a transfer or payment, your default (or primary) virtual account (e.g., USD) will be used as configured. However, if neither virtual account has sufficient funds, the payment moves to 'Pending Funds' status. Once the payment enters 'Pending Funds', Tipalti will no longer check the default virtual account and instead requires you to add funds to the same-currency virtual account.
For more info on pending funds, go to Managing unsuccessful payments.
How are virtual account funds secured?
When adding funds to Tipalti, we issue an equivalent amount of e-money to your virtual accounts. All funds sent to Tipalti are physically held by our Tier 1 banking partners within safeguarded accounts. Therefore, all funds are segregated from any Tipalti funds and fully protected from any adverse event that might impact your account.
Do Tipalti virtual accounts have their own account numbers?
Yes, but only for USD payers who have an enhanced virtual account set up with their own unique account number. For other virtual accounts, reference codes are used to differentiate between the various virtual sub-accounts in Tipalti.