• A zero balance account (ZBA) is an account that maintains a zero balance by transferring funds to and from the main account.

  • ZBAs are not consumer goods, but are used by large enterprises.
  • An organization may have multiple sub-accounts with a zero balance to monitor and track expenditure by department or project.
  • ZBA helps reduce risk because the company has more control over where its cash balances are located and what unauthorized spending may occur.
  • ZBAs are also usually heavily automated. While this limits clerical errors and improves operational efficiency in some way, the company must still track and reconcile its bank statements.