How it Works

The process of using virtual accounts through Localpayment involves the following steps:

1. Create Virtual Accounts: The merchant initiates the process by creating virtual accounts through Localpayment's platform. Each virtual account is uniquely generated to facilitate individual tracking.​

2. Virtual Account Creation: Localpayment generates a unique virtual account number (VAN) (and associated bank details like beneficiary name, bank name) specifically for this transaction or customer. This information is returned to your application.

3. Assign to Customers: Each virtual account is assigned to a specific customer, ensuring that incoming payments can be accurately attributed to the correct source.​

4. Customer Initiates ACH Transfer: Customers perform local ACH bank transfers, directing funds to their assigned virtual account numbers. This method ensures that payments are routed correctly without the need for additional identifiers.​

5. Real-Time Reconciliation: Upon receipt, payments are automatically reconciled in real-time 24/7. Localpayment's system performs automatic matching of incoming funds to the designated virtual accounts, with immediate updates to transaction records.

6. Notification: Merchants receive instant notifications for successful payments. These alerts confirm transactions and provide key details for efficient financial management.

Virtual Account Flow