What is a payment account?

Definition of payment account

A payment account is a bank account that allows you to make daily payment transactions.

These transactions can include depositing funds, making cash withdrawals and card transactions. Accounts that don’t allow you to make these types of transactions are known as non-payment accounts.

A couple of examples of payment accounts are:

  • current accounts
  • business current accounts

Got questions? Ask Emily!

FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.

Bookkeeping and tax tips

We are committed to keeping your information safe. Read our privacy policy to find out more.

Related Definitions

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.