Introducing Professional Services. Learn how we can help accelerate your payments transformation.Learn more →

Learn

What is A2A Banking?

Welcome to Learn, where we provide straightforward, easy-to-understand definitions of the payments industry.

Follow us

Account-to-Account (A2A) banking, sometimes also called Me-to-Me banking, is the transfer of funds from one account to another account. While A2A payments typically occur between accounts owned by the same customer, there are several instances in which that is not the case such as a direct debit to pay a utility bill. A2A payments can also be used to transfer funds to and from digital wallets.

The major advantage of A2A payments is that they don’t require an intermediary or a payment instrument like a card to be processed. There are two basic types of A2A payments:

  • Push Payments, like bank transfers, which require consumers to manually send or “push” money to another account.
  • Pull Payments, like automated recurring debits to pay a bill, where money is “pulled” from an account.

How Does A2A Banking Work?

For A2A banking, the funds transfer can occur between accounts at the same or different banks or even, in some cases, between a bank account and a brokerage account. For A2A transactions, a consumer’s financial institution must have some form of instant payments enrollment.

In the case of a transfer between two bank accounts–even at different financial institutions–A2A banking is straightforward: a customer transfers funds from their savings account to their checking account, for example, the funds are transferred instantly and are available in the checking account right away. This is also how transfers between checking accounts and digital wallets work. Though it is important to keep in mind that not every digital wallet offers this type of A2A transaction, as some digital wallet services still rely on ACH transfers or card payments.

For transfers between a standard checking or savings account and a brokerage account, both financial institutions—for the checking/savings account and the brokerage account—must be equipped to support instant payments. For a consumer with a brokerage account, A2A payments can provide a substantial benefit in allowing them to immediately transfer funds from a checking or savings account to their brokerage account to fund investments in real-time. Historically, transfers to a brokerage account would require consumers to wait several days for the funds to move between their accounts.

To learn more about Faster Payments and Payment Operations, check out these additional resources:

Try Modern Treasury

See how smooth payment operations can be.

Talk to sales
More from

Learn

Learn topic image

Payment operations is an umbrella term that refers to the entire lifecycle of money movement for a company.

Bank reconciliation is the process of verifying the completeness of a transaction through matching a company’s balance sheet to their bank statement.

Read more

A banking API is software that facilitates a digital connection between a company and a bank.

Read more

The term "cash position" pertains to the quantity of cash or assets that can be readily converted to cash, held by an individual, company, or financial institution at any given moment.

Read more

Continuous accounting is the ongoing process of updating a business’s general ledger with reconciled bank statement transactions as soon as they become available.

Read more

Fiat money is a form of currency issued by a government and declared legal tender, though not backed by a commodity.

Read more

Financial reporting empowers businesses to make informed financial decisions by identifying trends and tracking performance. It also offers insights into a company's assets, liabilities, and debt management strategies.

Read more

The Flow of Funds is the movement of money in and out of bank accounts.

Read more

Gross merchandise volume (GMV), also known as gross merchandise value, is the total value of the goods or services retailers sell over a set period.

Read more

An invoicing API allows companies to create, send, manage, and reconcile invoices, as well as track related payments end to end.

Read more

Know Your Business (KYB) is a set of verification procedures that helps companies avoid getting into business with criminals.

Read more

Month-end close is a critical process where the accounting team reviews and records financial transactions to close out the month.

Read more

Payment operations is an umbrella term that refers to the entire lifecycle of money movement for a company.

Read more

While both are essential for managing online transactions, there are several differences between payment processors vs. payments gateways.

Read more

Two options for financial transaction settlement—differing in both speed and style—here, we’ll look at how both Net Settlement and Gross Settlement work in action.

Read more

Incoming payment details are notifications that a company is going to receive a payment it didn’t originate—meaning the receiving funds were not initially requested.

Read more

Payment controls help accounts payable (AP) departments avoid losing money due to fraud, late payment fees, and other errors. They are a necessary part of a company’s overall payment operations to keep payments secure, accurate, and authorized.

Read more

Account-to-Account (A2A) banking, sometimes also called Me-to-Me banking, is the transfer of funds from one account to another account.

Read more

Implementing a multi-bank strategy is vital for companies looking to reduce risk exposure. In this article we explain how to reduce financial risk by implementing bank redundancy.

Read more

Batch processing is a method of processing various types of transactions. As the name suggests, transactions are processed in a group or “batch.”

Read more

In business terms, float refers to the time delay between the movement of funds from one account to another.

Read more

Know Your Customer or Know Your Client (KYC) is a set of guidelines for verifying the identity of a customer and gauging the associated risk of working with them.

Read more

Money transmission is the act of one party receiving currency for the purpose of sending it over to another party.

Read more

The 10-K is a comprehensive report mandated by the U.S. Securities and Exchange Commission (SEC) that publicly traded companies must file annually. This report provides a thorough overview of a company's financial performance over the past year.

Read more

A merchant’s bank account must pay an interchange fee to the card-issuing bank each time someone uses a credit or debit card to purchase something from their store.

Read more

Subscribe to Journal updates

Discover product features and get primers on the payments industry.

Subscribe

Products

Platform

Modern Treasury For

Case Studies

Insights

Documentation

Company

Legal


Popular Integrations

© Modern Treasury Corp.