A funding account is the source account that supplies the money for a set of payments. The term appears wherever one account is drawn on to finance another activity. A company using a payout service keeps a funding account with the provider, tops it up by bank transfer, and has each batch of payouts debited from it. A card programme has a funding account at the issuing bank from which daily settlement with the card network is taken. A wallet user's linked bank account or card is the funding account for loads, also called the wallet funding source.
How the account is filled is a treasury decision. Under prefunding, money is placed in a pre-funded account before payments are released, which ties up cash but guarantees cover. With just-in-time funding, funds are moved only as each payment is approved. Cross-border providers face the same choice in each currency, described as nostro funding.