Choose the type of bank account that suits all your payment needs:- www.deekpay.com

When talking about money flows, there are always two directions - inflow and outflow. While there are various ways to receive payments (e.g. payment gateways, QR codes, net banking, etc.), the outflow of funds has always been more hidden. Now, things are different! PayU's payment products are helping merchants to seamlessly pay the following:

- Employees (wages, reimbursements, etc.)

- Suppliers (sellers, distributors, etc.)

- Partners (distribution partners, manufacturers, etc.)

- Customers (refunds, cash back, etc.)

When you look at your account statement, you will see credit and debit records.PayU Payments can assist in processing all of these debit transactions.

Every business is unique and has specific needs. While PayU Payments has a variety of features to meet these needs, it's crucial for merchants to understand the various ways they manage their money. In this article, we'll take an in-depth look at the many types of accounts used for payments:

1. Virtual current account

This account is based on PayU's current account. A dummy account is created on top of this account with a unique dummy account number for each merchant (e.g. PAYUIC1111101). The IFSC code of this dummy account is the code of the bank branch where the current account of the PayU base is located. Merchants can have multiple virtual bank accounts in the same bank or in different banks. Merchants can deposit funds into this virtual account through a simple bank transfer. Once the funds are deposited into their virtual current account, they can easily send payments via the PayU dashboard or API. This type of account is suitable for situations where funds do not come directly from digital purchases or online transactions. Examples of such use cases include COD (cash on delivery) refunds, payroll, etc.

2. Virtual node accounts

This account is based on the PayU node account. The process of virtual account creation and unique VAN generation is the same as described above. The only difference is that the merchant can receive settlements for its online transactions, which is not allowed in the virtual current account. The settlement can come from PayU payment gateway or any other payment gateway available in the market. Once the funds are deposited in their virtual node account, they can easily send payments through the PayU dashboard or API. This type of account is suitable for situations where the funds come directly from an online transaction. Examples of such use cases include transaction refunds, game purchase rewards, etc.

3. Linking bank accounts

There are no dummy accounts here. Merchants can use their own bank account to make payments through the PayU dashboard or PayU API. Merchants can associate their existing bank account or open a new account with one of PayU's partner banks. Once the connected bank feature is enabled on the merchant's bank account, funds can be used directly to process payments. In this case, there is no need to transfer funds to any dummy account (manually or via settlement.) PayU is not involved in the management of funds and acts only as a technical service provider. This type of account is suitable for situations where the merchant can rely solely on his/her own bank, but wants to free himself/herself from the hassle of virtual account balance management.

4. Virtual Transition Account

This particular type of account is a mix of a virtual account and an actual bank account. The base account here is also the current account of PayU. At the same time, a transitional account is also created under the merchant's name. The process of virtual account creation, unique VAN generation, and fund addition is the same as mentioned in the first bullet point. The payment is initiated only from the merchant's virtual current account, but the funds flow to the beneficiary through the transition account created in the merchant's name. From a practical point of view, payments can be triggered via the PayU dashboard and API, same as in the first bullet point. This type of account is suitable for situations where the merchant wants to hide the PayU name from the beneficiary.

Whatever your payment needs are, PayU has a solution to meet them. Feel free to contact us to find out which account type meets your needs for making payments to beneficiaries. Check out our integration documentation.PayU Payments is the fastest growing payment product in India. To get started with our products and services.