Dedicated IBAN accounts are among the most widely used financial tools among companies operating in the European Union. However, despite providing several benefits, some myths have arisen about this financial tool. Below, we’ll explore the most common myths about dedicated IBAN accounts.
All IBAN accounts are the same
Some companies and businesses believe that all IBAN accounts are the same or have the same characteristics. However, the truth is that dedicated IBAN accounts differ in ownership, purpose, and structure, especially compared to other types of IBAN accounts (such as personal accounts). Dedicated IBAN accounts are assigned directly to a company or business, offering greater flexibility and traceability in the organization’s operations, allowing for clearer and more transparent audit trails, and contributing to compliance with various financial industry regulations, which contributes to improving the financial management of any company or business.
Only for large companies
Many companies and businesses believe that dedicated IBAN accounts are only for large companies. However, thanks to Fintech and technological advancements, the financial sector has evolved and become more inclusive, making dedicated IBAN accounts accessible to small and medium-sized businesses, enabling them to comply with various regulatory standards and better manage their financial resources.
It’s important to note that dedicated IBAN account providers (such as Pilsenga) offer a high level of scalability in this type of service, as they adapt to the needs of each company and adjust accordingly as the company grows.
They are only useful for receiving bank transfers and payments
Some people think that dedicated IBAN accounts are only useful for receiving bank transfers and payments. However, the truth is that dedicated IBAN accounts are financial tools that enable you to send and receive payments, as well as conduct all types of financial transactions. They also have the ability to integrate with online platforms and payment gateways, facilitating commercial transactions (B2C and B2B transactions) both domestically and internationally.
High Conversion Fees
Some companies and businesses believe that using a dedicated IBAN account for international transactions means they must pay high currency conversion fees. However, the truth is that dedicated IBAN accounts support multiple currencies, which allows them to avoid high commission costs when performing currency conversions.
It is important to note that, thanks to the financial solutions offered by Fintech companies, only a single dedicated IBAN account is required to carry out international transactions, as most IBAN accounts (such as multi-currency IBAN accounts) can support more than 30 currencies.
Low Security
Some people believe that dedicated IBAN accounts have a low level of security. However, the truth is that dedicated IBAN accounts are designed to offer a high level of security, transparency, and traceability, and they also meet several criteria for regulatory oversight.
It’s essential to note that dedicated IBAN accounts are offered by providers that must comply with stringent financial standards and security measures, including fund segregation and periodic audits. Furthermore, most platforms implement various security protocols, such as data encryption, two-factor authentication, fraud monitoring, anti-money laundering, and regulatory security measures to protect assets and prevent misappropriation of funds or unauthorized access.
What are your thoughts on this topic? Would you like to learn more about Pilsenga’s dedicated IBAN account service?
If you are interested in Pilsenga’s products and services, you can contact us by visiting the following link.
