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US Account - Choosing Between Shared and Personal Accounts: A Guide

 
When managing your finances on our platform, knowing when to use a Shared or Personal account is key. Each is designed for different needs, and this guide will help you decide which is best for you.

Shared Account

Overview

A Shared account is a USD deposit instruction that accepts fiat funds through wire and ACH push, sending these funds as USDC to your Decaf Wallet.
This account type uses a centralized system where all transfers go to one central account before being allocated to the individual account the payment was intended for, this is why it is so important to always include the Deposit Message (Reference) in the transfer.

Key Features

  • No Fees: Ideal for cost-conscious users.
  • Versatility: They can receive first and third-party payments from anyone.

Limitations

  • Deposit Message (Reference) is required in every transfer.
  • Platforms like Wise that use intermediary banks, don’t properly support sending Deposit Messages.
  • Shared accounts do not support microdeposit verifications, Personal accounts do.

When to Use a Shared Account

When receiving payments from multiple sources, such as clients or family, without fees (as long as the sender can add a Deposit Message to the transfer).
 

Personal Account

Overview

A Personal account is a USD deposit instruction that provides a unique routing and account number specifically assigned to you, it accepts wire transfers and ACH deposits. Unlike Shared accounts, Personal accounts do not require a Deposit Message (Reference), and the beneficiary of the account is yourself.

Key Features

  • No Deposit Message Needed
  • Micropayment Verification Supported: ideal for users whose banks require it to add new recipients.
  • Personal accounts work perfectly with platforms like Wise

Limitations

  • Fees: There is a 0.5% fee in all Personal account transactions.
 
For non-US residents Virtual Accounts are fully permitted to receive the following transactions.
  • First-party payments where you are sending USD from your bank, fintech app, or brokerage account
  • Third-party payment where a registered business sends USD from its bank account
  • Third-party payment from a family member’s bank account, where you share a surname
  • Third-party Person-to-Person payment for an amount less than $2,000
 
For US residents the following types of transactions are fully permitted to be received by Virtual Accounts.
  • First-party payments where you are sending USD from your bank, fintech app, or brokerage account
  • Payroll payments from businesses
 

When to Use a Personal Account

Personal accounts are best suited for users who need more flexibility and are willing to pay a small fee for added convenience.

Conclusion

Choosing between a Shared and Personal account depends on your specific needs and the types of transactions you expect to receive.
  • Use a Shared Account when you need a cost-effective, versatile option that can handle multiple payments from various sources, provided you don’t need microdeposit verification and can include a deposit message.
  • Use a Personal Account when you need flexibility with transaction types, don’t want to deal with deposit messages, or your bank requires micropayment verification.
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By understanding the differences and choosing the right account type, you can ensure smooth and efficient management of your finances.
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