Today, thanks to technology and the globalized economic system, people and companies can make payments to buy products and services internationally. However, in previous years, this could be a tough process sometimes, because of the need to make a “currency exchange” or to have access to intermediaries to make the desired transactions.
In order to provide an effective solution to these problems and to make these financial transactions more reliable and convenient for users, Fintech companies have created several financial solutions, among which multi-currency IBAN accounts stand out. However, even though these types of accounts offer various advantages, there are myths that confuse some people, generating certain “doubts” in new users. Some misconceptions about multi-currency IBAN accounts are mentioned here.
The conversion is valid only in dollars and euros
Being a “relatively” new account system in the financial world, many people think that this type of account is only valid for the two more popular current in the West (the US dollar and Euro) However, most multi-currency IBAN accounts allow their users to have access to a conversion system for over 30 currencies, which is very useful when transactions between countries with currencies different from euro (EUR) or US dollar (USD) are required.
Hidden feeds
While multi-currency accounts may have certain fees and commissions associated with them, this does not mean that the account will have hidden fees. Before opening an account, it is important to research and compare the fees and commissions offered by the provider. For example, with Pilsenga, their feeds are public and can be viewed by any user on its website.
Business accounts only
Being multi-currencies accounts that allow sending or receiving payments nationally and internationally, there is a myth that multi-currency IBAN accounts are only for business use. They have created these types of accounts with the aim to offer an attractive option for a wide variety of people and companies that wish to make transfers or offer/acquire products/services within and outside their country.
Unreliable international transactions
Another widespread myth is that international transactions are unreliable, mainly because of errors in the remittance. However, with multi-currency IBAN accounts, you can have a high level of confidence and security when making transactions, since this type of account comprises a series of characters (34) made up of letters and numbers whose function is to identify the destiny account, thus allowing the payment to reach the correct account. For greater user security, the IBAN account identifies the country, check digit, bank location, and account details. They do it by using a system whose algorithm specializes in verifying the IBAN and account holder information.
Complicated to manage
Many people think that multi-currency IBAN accounts are difficult to manage; however, many financial institutes and Fintechs have developed several user-friendly and intuitive platforms to manage multi-currency IBAN accounts. The platforms are usually easy to use and allow currency conversions and display balances in different currencies. An example is Pilsenga’s multi-currency IBAN accounts, which allow companies to make international payments and integrate into the wide Single Euro Payments Area (SEPA).
What do you think about this topic? Would you like to know more about IBAN multi-currency accounts?
If you are interested in Pilsenga’s products or services, you can visit our website and register on our platform by visiting the following link.
