Eating Disorders: Lockbox Services

Monday, 19 November 2012

Lockbox Services

This chapter applies to designated depositaries (hereinafter referred to as "Lockbox Depositaries") located within the 50 United States, the District of Columbia, and other territories and possessions as specified in the Designation of Financial Agent (DFA), formerly Lockbox Depositary Agreement or Financial Agent Agreement. These Lockbox Depositaries have the authority to act as financial agents for U.S. Government agencies and to perform electronic and paper-based lockbox services. 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.