Zero Balance Account
A Zero Balance Account (ZBA) is a type of checking account that businesses use in order to centralise their finances and keep as few funds as possible in checking accounts, where they generally earn no interest. The account is used to process payments, so when a check is issued, funds are transferred from a main account into the ZBA. Once the check is cashed, the balance returns to zero, which prevents people with access to the account from incurring unauthorised expenses. The main account used to fund the ZBA often has more favourable terms than the checking account and is easier to manage since it is a single master account.