Jun 20, 2025
A simple double-entry ledger with source and destination accounts
Understand why forward-thinking finance teams are ditching old-school PSPs.

Introduction to Double-Entry Ledger Systems for Cross-Border Payments
Welcome to the Bluerails blog, your go-to source for insights on scalable payments infrastructure. In today's article, we'll dive deep into double-entry ledger systems, a foundational component for efficient cross-border payments.
Our team at Bluerails leverages extensive fintech experience to build robust payment APIs and multi-currency ledgers designed for global scalability.
Understanding Double-Entry Ledger Systems
A double-entry ledger ensures that every financial transaction is accurately accounted for by recording two corresponding entries:
Debit entry: Reflects money leaving an account.
Credit entry: Reflects money entering an account.
This fundamental principle guarantees account reconciliation, ensuring that the total of debits and credits always equals zero.
Source and Destination Model in Payments Infrastructure
Our ledger employs a straightforward source-destination model aligning intuitively with money flow:
Source account: The account from which funds are withdrawn.
Destination account: The account receiving funds.
This clear structure naturally supports double-entry accounting, crucial for accurate financial record-keeping.
Building a Simple Double-Entry Ledger with PostgreSQL
Below is an example of creating a scalable double-entry ledger using PostgreSQL, ideal for fintech applications requiring precise transaction tracking:
Practical Example: Peer-to-Peer Cross-Border Transfer
Let's illustrate with a peer-to-peer global payment:
Calculating Account Balances
To reconcile accounts accurately:
Sum incoming payments (where the account is the destination).
Subtract outgoing payments (where the account is the source).
Example SQL query:
Multi-Currency and Scalable Payment Transactions
Bluerails' fintech ledger system inherently supports multi-currency transactions. Our infrastructure can seamlessly scale to handle complex payment flows.
For complex transactions involving multiple moves, introducing transaction grouping via a transaction ID is beneficial:
This allows efficient tracking of grouped transactions, such as platform fees alongside user transfers.
Addressing High-Volume Ledger Performance
While a basic ledger performs well for standard use cases, high-volume transaction scenarios, such as those encountered in global payments infrastructure, require optimized performance solutions.
Potential strategies include:
Implementing separate tables for real-time balance tracking.
Regular ledger summarization for frequently accessed accounts.
Suggested Resources for Further Reading
FAQs: Double-Entry Ledger Systems
What is a double-entry ledger in cross-border payments?
A system ensuring each cross-border transaction has a corresponding debit and credit entry, guaranteeing accurate and balanced financial records.
Why use a multi-currency ledger for global payments?
A multi-currency ledger simplifies transactions across different currencies, enhancing scalability and simplifying account reconciliation.
How does Bluerails' payment API enhance cross-border transactions?
Bluerails' payment API integrates seamlessly with double-entry ledger systems, optimizing transaction speed, accuracy, and scalability for global payments.
Conclusion: Partner with Bluerails for Scalable Payments Infrastructure
Explore how Bluerails' cutting-edge fintech ledger system and cross-border payment solutions can enhance your business. Contact Bluerails today to optimize your global payments infrastructure.