How can I better manage transferring funds to my payroll and payables accounts while eliminating the possibility of costly overdrafts or tying up large amounts of cash?
A Zero Balance Account is an excellent alternative to paying large overdraft fees or risking the possibility of bounced checks. With zero or target balance accounts, disbursement accounts are linked to a designated funding account, and transfers are made based on the exact amount of the checks clearing your bank account. This is also referred to as “just in time funding”. Only the exact amount needed to pay checks presented is transferred. At the end of the day, the account returns to zero or the established target balance, therefore eliminating excess funds or possible overdrafts.
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