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Zero Balance Account - ZBA
       
 
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Zero Balance Account - ZBA

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Zero Balance Account - ZBA
A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented.
    
ZBA is a checking account which always maintains a balance of zero. Whenever the Corporation needs to write a check, they transfer money into the account for the exact sum for which the check Will be written, so that once the check is cashed there Will once again be a balance of zero in the account. This helps the Corporation avoid having money in too many different places.
    
Companies with large numbers of stores or locations can very often be confused if all those stores are depositing into a single bank account. Traditionally, it would be impossible to know which deposits were from which stores, without seeking to view images of those deposits. To help this problem, banks developed a system where each store is given their own bank account, but all the money deposited into the store account is automatically moved into the company's main bank account. This allows the company to look at individual statements for each store. US Banks at the present time, however, are almost all converting their systems so that companies can tell which store made a particular Deposit, even if these deposits are all being done into one account. Therefore, zero balance accounting is being used less frequently.
Posted by  PrĂ©vis AG
 
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