What are dedicated IBANs for businesses? A guide

A dedicated business IBAN is now a key element in the global digital economy. Modern business processes need to combine clarity with easy payment reconciliation and compliance. For this reason, a dedicated IBAN account offers a convenient way to send money and receive incoming payments seamlessly.

Genome is a regulated European Electronic Money Institution (EMI) that provides business accounts for businesses looking for simpler payments. Whether you carry out international trade or need to pay suppliers abroad, the right IBAN accounts will help your business.

What is a dedicated IBAN?

An IBAN is an International Bank Account Number. It’s used in Europe and some other regions, but it isn’t a worldwide standard. It is a way of identifying bank accounts across borders. The bank account details included in this number are as follows.

Each business IBAN account starts with a two-digit country code.
Two check digits that are used to verify IBAN accounts come next.
The rest of the account number covers the branch code and account number, depending upon each country’s format.

This format was brought in as a way of easily and clearly identifying bank accounts from different countries. It helps reduce errors when sending money to an international bank account.

A dedicated IBAN account keeps your payment reconciliation process simple. You don’t need to mix payments when you have multiple bank accounts to receive them from different sources.

Genome offers an EUR IBAN account for businesses. These IBAN accounts are available for EU-based businesses. Unlike traditional banks, Genome simplifies processes so that you can streamline reconciliation and handle your transactions more easily, as this IBAN is a part of a multi-currency account feature.

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How do dedicated IBANs for businesses work?

Using a dedicated IBAN account is simple. If you’re looking for more flexibility in handling your business accounts, you need to follow these steps.

Open an IBAN business account with a reputable provider, like Genome.
You receive a dedicated IBAN account number. If you carry out financial operations in different currencies, you can request multiple business accounts.
Provide your international bank account number to your clients, partners, and other businesses that deal with you. They can start to use that number for international transfers.

While IBAN accounts are closely associated with payments through SEPA transfers in the Single Euro Payments Area, they can also be used for cross-border payments beyond the EU. SWIFT transfers can be made when relevant.

This way of carrying out international trade fits neatly with the rest of Genome’s online business financial options. You can use our dashboard to keep track of your IBAN accounts and look for details on your international payments on your online statements.

Dedicated IBAN vs pooled and virtual IBANs: key differences

The dedicated IBAN method we’ve looked at sounds similar to the use of a virtual IBAN. Yet, there are crucial differences between them that you need to know about.

Feature	Dedicated IBAN accounts	Virtual IBAN accounts	Pooled account
Linked to a unique business account	Yes	No	No
Full services for outgoing and incoming payments	Yes	Not always	Yes
The funds are segregated_	Yes	Through a mapping system	No
Suitable for compliance and audit purposes	Yes	Not always	No

Overall, using a dedicated IBAN provides a smoother customer experience and makes your transactions easier to track. Each dedicated IBAN or IBAN-linked account receives only the transactions you want to keep together, keeping them separate from other payment flows.

Key benefits of dedicated IBANs for businesses

The growing trend toward dedicated IBAN accounts stems from their offering several useful benefits. The following are ways that companies benefit from using this approach for their business transactions.

Easier reconciliation & accounting

When funds are received into a dedicated IBAN, it’s easier to reconcile them because each IBAN can be assigned to a specific client, project, or business unit instead of being mixed with all other incoming payments. This separation leads to a smoother process, making accounting easier to carry out.

Improved cash-flow visibility

It’s an approach that offers clarity in cash flow management. The money received in international transactions is immediately reflected on the relevant dedicated IBAN or sub-account. This means there is no delay in seeing which transactions have arrived, even in businesses with complex payment flows.

Professionalism & trust

The next key issue is the trust that using a dedicated IBAN provides. Customers and partners will realise that they’re dealing with a professional company that operates with financial efficiency.

Reduced payment errors

This method of carrying out cross-border transactions is an excellent way to reduce the number of payment errors made. Anyone sending money just needs the dedicated IBAN details you’ve shared with them.

Better audit & compliance trail

With payments routed to specific IBANs or separate sub-accounts, even high transaction volumes don’t cause confusion. A clear and concise audit trail makes it easier to maintain compliance at all times.

Support for cross-border operations

This type of account is ideal for e-commerce platforms and other businesses that have global clients. It’s easy to receive payments from international clients without any fuss or delay.

Common use cases for dedicated business IBANs

A dedicated IBAN account can prove extremely useful for many businesses in different situations.

SMEs selling across the EU

These dedicated accounts are ideal for receiving payments across the EU for payments and services via the SEPA network. These international transactions are handled effortlessly, so you can ramp up your sales efforts in most European countries. With a Euro IBAN for business, you can accept payments in this currency from many European countries.

Marketplaces & platforms

International transfers typically have high compliance standards and need to show that they can be trusted. It makes dedicated accounts with IBAN capability perfect for them.

Subscription / SaaS businesses

The need for reliable international payments makes a dedicated IBAN account ideal for companies that receive recurrent payments. Digital-first businesses and fintech companies can handle issues like currency conversion and automated payments seamlessly.

How dedicated IBANs work at Genome

Genome is a licensed Electronic Money Institution in the EU that offers a wide range of banking functionality. It includes multi-currency accounts and business accounts with a dedicated IBAN. Your business receives a dedicated EUR IBAN account as soon as they gain access to their business wallet and can open 4 more accounts in EUR.

Companies can receive SWIFT transfers from multiple countries and in a variety of currencies, thanks to the multi-currency support. Multi-currency accounts can hold money in EUR, USD, GBP, PLN, CHF, JPY, CAD, CZK, HUF, SEK, AUD, and DKK, supporting companies with global operations. Payments can be converted into alternative currencies at competitive rates with a currency exchange feature.