# Credit funding via virtual IBANs

A virtual IBAN (International Bank Account Number), or vIBAN, is a unique account number that allows you to receive payments and manage funds without the need for a physical bank account. Each vIBAN is associated with an account group. Thanks to an inherent validation mechanism, transfers are automatically matched without the user having to enter the detailed information required for a transfer with a conventional IBAN.

You can assign a vIBAN to your user through the [creation of a Virtual Bank Account](/api/virtual-bank-accounts/create_virtual_bank_account). Users with multiple account groups can have several virtual bank accounts. This functionality supports credit financing by allowing users to easily receive money and top up their balances to their vIBAN.

In this guide, you will learn the details about vIBANs and how they are implemented with the Investment API.

Please note that this function is only available on request. Upvest will need to activate it for you after consultation.

## What are vIBANs?

A vIBAN is a unique bank account number that enables you to receive payments and manage funds without a physical bank account. Each vIBAN can be linked to an account group, facilitating automatic matching of bank transfers and minimizing errors associated with traditional IBANs.

In the future, we will enhance the functionality of vIBANs by automatically allocating amounts to specific products.

In summary, the benefits of a vIBAN consist of the following aspects:

• **Ease of use**

Users can receive payments without needing to provide detailed transaction information, as the vIBAN simplifies the process.

• **Automatic allocation**

Incoming funds are automatically routed to the correct account group balance, allowing for efficient management of funds.

## How does a transfer work with a vIBAN?

SEPA credit transfers work by users transferring money. For this purpose, they receive [credit funding details](/products/byol/guides/payments/viban/viban_credit_funding_details) so they know where to send the money. To simplify this, we have created an [endpoint](/api/credit-fundings/retrieve_funding_details) that provides users with this information.

The vIBANs are unique, connected to an account group, and act as a virtual bank account. Technically, this means that you will create virtual bank accounts manually for an account group (`account_group_id`) and receive a vIBAN for that virtual bank account.

Each time the user sends money to their virtual bank account and tops up their balance, Upvest can identify this incoming payment and automatically allocate it to the user. This eliminates the previous need to provide account group specific payment remittance information.

When matching the money received with a specific vIBAN, the system also checks whether the money was sent from a bank account held in the name of the user in the account group. However, if the money is sent from a bank account that is not in the name of this user, the transfer is rejected and the money is returned.

The Investment API provides you with an endpoint to execute a bank transaction for testing purposes. You can test a SEPA transfer if you are using virtual bank accounts. Read this [guide](/products/byol/guides/payments/testing/credit_transfer_viban_testing) to learn more.

## Multiple vIBANs

Upvest supports you with multiple vIBANs per account group. You can create multiple virtual bank accounts manually for each of your account groups. In the event that you want to offer users a different vIBAN depending on the product offered.

When a user triggers a credit transfer to a specific vIBAN, the funds are allocated to the cash balance at the account group level. If needed, you can then implement that the amount sent is automatically allocated to the desired investment portfolio or a future savings product.

Please be aware that currently no allocation is made to a specific portfolio or savings plan.