If your team is tired of slow international transfers, opaque FX spreads, and messy receivables, you’re not alone. Cross-border payment costs remain stubbornly high for many companies, and much of the pain sits on the collections side. Named collection accounts give your business a way to get paid like a local in key markets, without opening a full local bank account in every country.
Used correctly, named collection accounts can cut FX costs, improve cash visibility, and make your finance team’s life far easier. In this guide, we’ll break down what they are, how they work, and how a specialist partner like Kazzius Capital can help you turn collections from a cost centre into a real strategic advantage.
Table of Contents
What Are Named Collection Accounts?
At a basic level, a named collection account is a local account (often a virtual IBAN or local account number) issued in your business name, used to receive payments in a specific currency or country.
From your customer’s point of view, they’re paying a local account that clearly shows your business name as the beneficiary. Behind the scenes, those incoming funds can be swept into a central master account, converted at agreed FX rates, or held in currency wallets for later use. (ClearBank)
Think of them as a smarter way to collect global receivables:
- “Named” – the account details are branded with your business name, boosting trust and reducing disputes.
- “Collection” – they’re designed first and foremost for receiving and reconciling incoming funds.
- “Account” – in many cases, they behave like a local account (with an IBAN, sort code, or routing/account number), while being managed centrally by your FX/payment provider.
Named Collection Accounts vs Traditional Bank Accounts
Traditional route:
- Open a full local account in each market.
- Navigate local KYC, in-country presence requirements, and ongoing bank relationship management.
- Deal with siloed balances and manual reconciliation.
Named collection account route:
- Use a specialist FX provider to issue local account details for key currencies/regions. (ClearBank)
- Customers pay those details as if you had a local bank presence.
- Funds are pooled and controlled through a single, central platform (like Kazzius Capital), often integrated with your ERP or treasury system.
How Virtual IBANs Fit In
Most modern named collection accounts are powered by virtual IBANs:
- A virtual IBAN looks like a standard IBAN to your customer.
- When funds arrive, they’re automatically routed to a master account, with full transaction details preserved for reconciliation. (Fiat Republic)
- You can have many virtual IBANs (for different regions, products, or clients), all feeding into a single underlying balance.
For finance teams juggling multiple currencies and markets, this structure gives you local-facing detail with centralised control.
Why Getting Paid “Like a Local” Matters
Cross-border payments are a huge part of modern commerce. The global cross-border market approached one quadrillion dollars in value in 2024, highlighting how critical efficient international payments are to trade and investment. (IMF)
Yet despite this scale, fees and friction remain high:
- FX costs are not just about the headline rate. Many banks embed extra margin into the spread between the interbank rate and what corporate clients actually receive. (Redbridge)
- Hidden cross-border fees can quietly erode profit, especially for SMEs working on tight margins. (Trolley)
- Currency volatility adds another layer of risk, impacting pricing, cash flow, and profit stability. (marketdaily.com)
At the same time, macro and political volatility has already wiped out hundreds of billions in profits for large global companies, much of it tied to shocks in trade and FX markets. (Financial Times)
In that context, getting paid “like a local” becomes much more than a convenience. It’s about:
- Reducing unnecessary cross-border charges.
- Improving predictability of incoming flows.
- Creating a better experience for your customers and payers.
Named collection accounts are one of the most practical tools you can deploy to achieve that.
How Named Collection Accounts Work in Practice
Let’s walk through a typical flow with a named collection account.
Step 1: Your Business Is Issued Local Details
Through a provider like Kazzius Capital, your business is issued local account details in one or more currencies, for example:
- A DE IBAN for EUR collections in the EU.
- A GB IBAN and sort code/account number for GBP.
- Local account details for USD, CAD, AUD, and others, depending on your markets.
Each set of details is in your legal entity’s name, not the provider’s.
Step 2: You Share Local Details with Customers
Instead of asking a German client to pay a GBP account in London (with SWIFT charges and FX conversions on their side), you simply invoice them with:
Beneficiary: YourCompany GmbH
IBAN: DE…
Bank: Local partner bank
From the customer’s perspective, they are settling a domestic transfer, often with lower fees and faster settlement. (ClearBank)
Step 3: Funds Are Collected and Routed
When the client pays:
- Funds hit the named collection account.
- Your provider’s infrastructure routes the payment to a central master account.
- Your portal shows:
- Payer details
- Amount and currency
- Value date and references (invoice, customer ID, etc.)
Because each client or market can have unique details, reconciliation becomes far cleaner.
Step 4: Convert, Hold, or Reuse
From the master account, you can:
- Convert incoming funds at an agreed rate into your home currency.
- Hold the original currency to pay suppliers or staff in that region.
- Net and settle across currencies as part of a broader treasury strategy.
This is where named collection accounts start to tie in with hedging, forward contracts, and mass payments, which we’ll touch on shortly.
7 Core Benefits for Finance and Treasury Teams
Well-designed named collection accounts can transform how you manage global receivables. Here are seven key benefits.
1. Get Paid Like a Local in Key Markets
- Issue local account details with your company name in the currencies that matter most.
- Remove excuses for late payments due to cross-border friction.
- Offer a smoother experience to customers, suppliers, platforms, and marketplaces.
2. Cut FX Costs and Hidden Bank Charges
When customers pay a foreign currency directly into your named collection account instead of converting via their bank, you gain control over when and how FX happens.
That allows you to:
- Avoid poor FX rates applied by customers’ banks.
- Centralise conversions through a specialist provider with more transparent pricing.
- Align FX execution with your hedging policy rather than leaving it to chance.
According to leading market analysis, embedded FX margins and fees can significantly erode corporate profit if not managed carefully. (Redbridge)
3. Faster Settlement and Improved Cash Flow Visibility
Local payments typically settle faster and with fewer intermediary banks than SWIFT wire transfers. That means:
- Shorter settlement cycles.
- Fewer held or rejected payments.
- Clearer forecasts of when receivables will land.
In volatile markets, this improved visibility is invaluable.
4. Cleaner Reconciliation and Fewer Errors
Because you can issue unique account details per customer, region, or business line, reconciliation becomes far easier:
- Each incoming transaction is already “tagged” by virtue of the account it landed in. (ClearBank)
- You can automate matching to invoices and customer records in your ERP.
- Manual exception handling is reduced, freeing finance staff for higher-value tasks.
5. Greater Trust and Fewer Disputes
Customers like seeing your legal name on the beneficiary account. It signals:
- They’re paying the correct party.
- The relationship is established and stable.
- There’s a clear audit trail if questions arise.
This is especially important in high-value B2B transactions or sectors with heavy compliance scrutiny.
6. Better Support for Hedging and Risk Management
Named collection accounts help you align FX risk management with real-world cash flows:
- You see exactly which currencies are coming in, and when.
- You can map those receipts against forward contracts or other hedges.
- You reduce the mismatch between forecast and actual flows.
Recent research shows that more than 60% of companies are extending their FX hedges due to geopolitical and currency volatility, highlighting the importance of robust risk frameworks. (Reuters)
You can read more about how Kazzius Capital approaches risk management on the hedging pages:
7. Centralised Control Across Multiple Markets
Instead of juggling a patchwork of local bank portals, you get:
- A single platform to view balances, flows, and FX exposures.
- Standardised approval workflows and controls.
- Consistent reporting across all currencies and entities.
For CFOs and group treasurers, this central view is critical when your board is asking detailed questions about FX risk, liquidity, and global performance.
Banks vs Specialist FX Providers
You may be wondering: Should I set up named collection accounts with my existing bank, or work with a specialist provider like Kazzius Capital?
Traditional Banks
Pros:
- Familiar counterparties and internal approval comfort.
- Existing credit lines and ancillary services.
Cons:
- Often slower to issue local accounts in multiple markets.
- More complex onboarding, especially if you lack local presence.
- FX pricing that might include wide spreads relative to specialised providers. (Redbridge)
Specialist FX and Payment Providers
Pros:
- Built from the ground up to support cross-border payments at scale. (McKinsey & Company)
- Faster issuance of virtual IBANs and named collection accounts across many corridors.
- Transparent FX pricing, with clear spreads and institutional-grade execution.
- Tools like mass payments, hedging, and real-time reporting under one roof.
Cons:
- You need to perform detailed due diligence on safeguarding, regulation, and counterparty risk.
- Internal stakeholders may initially prefer incumbent banks out of habit.
Kazzius Capital is designed precisely to bridge this gap: combining specialist FX capabilities with client-focused support, clear pricing, and strong safeguarding frameworks. To see how the platform fits your business, start here:
👉 Explore Kazzius Capital’s tailored FX and payment solutions
Where Named Collection Accounts Fit in Your FX Strategy
Named collection accounts are most effective when integrated into a broader FX and treasury strategy.
1. Pairing Collections with Hedging
Once collections are flowing into your named accounts, you can:
- Lock in future rates via forward contracts when exposure becomes visible.
- Use layered hedging strategies based on actual order books and receivables.
- Smooth out margin swings caused by sharp currency moves.
Learn more about structuring hedges with Kazzius:
2. Linking Collections to Mass Payments
If you receive funds in one region and then pay out to:
- Remote staff and contractors,
- Suppliers and logistics partners,
- Affiliates or platform sellers,
you can use those incoming funds as a natural funding source for outgoing payments.
Kazzius Capital’s mass payments capabilities allow you to:
- Make bulk payouts in multiple currencies from a single interface.
- Reuse collected balances to settle local obligations, reducing conversions.
- Track inflows and outflows at scale with clear reporting.
3. Multi-Currency Accounts and Wallets
Named collection accounts often sit alongside multi-currency wallets, giving you flexibility to:
- Hold balances in key trading currencies.
- Net exposures between receivables and payables.
- Decide when to convert based on rate levels and risk appetite, using live reference rates from providers like XE. (Xe)
What to Look For in a Named Collection Account Partner
Choosing the right partner is critical. Here’s a checklist tailored to CFOs, controllers, and treasury leads.
1. True Named Accounts in Your Entity’s Name
- Are the accounts clearly labelled with your legal entity name?
- Do customers see that name on their statements?
This reduces confusion, cuts fraud risk, and strengthens your brand. (WeWire Blog)
2. Coverage: Currencies and Jurisdictions
- Which currencies and countries can you collect in?
- Are the corridors aligned with your current and planned markets?
3. Safeguarding and Regulatory Framework
- How are client funds safeguarded or segregated?
- What licences or regulatory permissions does the provider hold?
- Are there clear terms and a transparent privacy policy?
You can review Kazzius Capital’s documentation here if compliance is your focus:
4. FX Pricing and Transparency
Ask for:
- A clear explanation of how FX spreads are set.
- Comparison against mid-market rates from sources like OANDA.
- Visibility into any per-transaction or management fees.
5. Integration with Your Existing Systems
- Can the platform integrate with your ERP, accounting, or treasury system?
- Are APIs available for automated reconciliation and reporting?
6. Human Support from Specialists
When large transactions or complex flows are involved, genuine human support matters. Look for:
- Named relationship managers.
- Proactive guidance on FX strategy, not just ticket-based support.
This is very much part of the Kazzius Capital approach: combining technology with direct access to specialists who understand cross-border trade, payroll, and treasury needs.
Practical Use Cases by Sector
Named collection accounts are flexible. Here are some concrete use cases by business type.
1. Import/Export and Trading Companies
Challenge: Invoices across multiple currencies, frequent FX surprises, and slow payments from customers who dislike international transfers.
Solution with named collection accounts:
- Issue EUR, USD, and GBP details in your name.
- Invoice customers in their local currency, payable to local accounts.
- Use Kazzius Capital to convert or hold funds, aligning trades with your hedging strategy.
Result: clearer margins, fewer disputes over charges, and more predictable receivables.
2. SaaS and Subscription Businesses
Challenge: Recurring international subscriptions, high card-processing fees, and complex reconciliation between payment processors and invoicing.
Solution:
- Assign unique virtual IBANs or named collection accounts to large enterprise clients or regions.
- Match incoming payments automatically to subscription records.
- Reuse collected balances for local operating costs or payroll.
3. Marketplaces and Platforms
Challenge: Hundreds or thousands of buyers and sellers across borders, each with different currencies and bank preferences.
Solution:
- Use named collection accounts for each major currency to collect from buyers.
- Combine this with mass payouts to distribute funds to sellers in their chosen currency.
- Keep a clear ledger of inflows and outflows per region, segment, or merchant.
4. Global Payroll and Contractor Payments
Challenge: Paying remote workers and contractors while receiving income from different regions.
Solution:
- Collect in local currencies using named accounts.
- Use those balances to fund payroll and contractor payouts in the same or related currencies, limiting unnecessary conversions.
- Leverage Kazzius Capital’s mass payment tools for monthly payroll cycles.
If you’re interested in simplifying global payroll, Kazzius shares regular updates and ideas in the insights section:
👉 Read the latest FX and global payments insights
Implementation Roadmap with Kazzius Capital
Here’s a straightforward path to bring named collection accounts into your existing treasury stack.
Step 1: Map Your Current Flows
- List your top 5–10 currencies by receivables volume.
- Identify where customers regularly complain about international transfer costs or delays.
- Pinpoint regions where you’d like to offer a local collection option.
Step 2: Engage with a Specialist
Book time with a Kazzius Capital specialist to:
- Review your current bank setup and FX pricing.
- Identify which corridors should be prioritised for named collection accounts.
- Align on risk appetite, hedging preferences, and reporting requirements.
👉 To move this from theory to practice, speak to a Kazzius Capital specialist today:
https://kazziuscapital.com/contact-us/
Step 3: Onboarding and Account Issuance
Once KYC and onboarding are complete, Kazzius can:
- Issue named collection accounts (often via virtual IBANs) in your target currencies.
- Configure how funds flow to your master accounts and wallets.
- Set user access and approval hierarchies for your team.
Step 4: Rollout to Customers and Partners
- Update invoice templates, contracts, and payment instructions.
- Communicate clearly that customers can pay local bank details in their preferred currency.
- Monitor early transactions closely to catch any operational edge cases.
Step 5: Optimise with Data and Hedging
After a few cycles, you’ll have data on:
- Which currencies and regions are generating the most inflows.
- Typical settlement times and amounts.
- Natural hedges between receivables and payables.
Use this insight to fine-tune your hedging policy, forward contract usage, and mass payment workflows through Kazzius Capital.
Key Takeaways
- Named collection accounts let your business get paid like a local in multiple markets, without opening full local bank accounts everywhere.
- They are often powered by virtual IBANs, giving you local-facing account details while keeping control centralised. (Fiat Republic)
- The benefits span lower FX costs, faster settlement, better reconciliation, and stronger trust with customers and partners.
- In a world where FX volatility and geopolitical tension are hitting corporate profit, tools that improve control of cross-border flows are no longer optional. (Financial Times)
- A specialist partner like Kazzius Capital combines named collection accounts with hedging, forward contracts, and mass payments, providing a complete toolkit for finance and treasury teams.
If you’re ready to reduce FX friction and give your customers a truly local payment experience, the next step is simple:
👉 Explore Kazzius Capital’s platform
👉 Talk to a Kazzius Capital specialist about your FX and collections setup
👉 Stay informed with news and insights on FX markets and cross-border payments