Lockbox

Lockbox

 Lockbox is generally divided into Wholesale and Retail. Retail lockboxes are for companies with high volumes of consumer oriented payments such as utility payments, loan payments, etc., and these remittances often include a standardized 'payment coupon'. Wholesale lockboxes are for corporate to corporate payments and tend to be higher dollar amounts than retail lockbox transactions. These transactions usually do not include a standardized payment coupon and require more manual effort for the bank to process. Lockbox services are sometimes called 'Remittance Services' or 'Remittance Processing'. One benefit of the lockbox service to the commercial customer is that it can maintain special mailboxes in different locations around the country and a customer sends payment to the closest lockbox. The company then authorizes a bank to check these mailboxes as often as is reasonable, given the number of payments that will be received. Because the bank is making the collection, the funds that have been received are immediately deposited into the company’s account without first being processed by the company’s accounting system, thereby speeding up cash collection.

Lockbox

Lockbox

Lockbox

Lockbox

Lockbox

Lockbox

Lockbox

Lockbox

Lockbox