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Introduction


1. Introduction

Zero Balance Accounts (ZBA) are useful for automating daily funds transfers between deposit accounts so as to eliminate idle balances by concentrating unused funds daily into a single account. A ZBA is also used to fund disbursement accounts on an “only as needed” basis. For each pair of deposit accounts, one is designated as “master” and the other as “sub”.

ZBA processing runs once daily, after all other transactions have posted (except Sweep processing). ZBA transfers are driven by a preset target balance for the sub-account ($0 by default). If the ledger balance is above the target balance, a ZBA transfer automatically debits the sub-account and credits the master account. Conversely, if the ledger balance in the sub-account is below the target balance, a sweep transfer automatically debits the master account and credits the sub-account to restore the target balance. Because a ZBA moves ledger balances, any float balances present in the sub-account is also moved to the master account.

As a result, $0 is automatically maintained in the sub-account and excess cash is concentrated in the master account. This can simplify daily cash management through manual methods or an Automated Sweep. Because the ZBA process runs at the end of day, it can be more efficient than what can be accomplished by manual transfers at some point in the middle of the day.

KeyTRAC

KeyTRAC is an option through KeyNavigatorSM for ZBA, it allows you to monitor location level activity. Each location (store) utilizes a unique ZBA subsidiary account. Key will tag the activity for all the subsidiary accounts with a unique location identifier, which you select. Location identifiers can be alpha, numeric or mixed with up to 26 characters.

Credits, currency and coin orders, returned items, and miscellaneous debits can be identified by a KeyTRAC location number. All information is available and exportable through KeyNavigator or a Consolidated BAI2 file transmission.