For businesses that receive a large volume of payments or high face value checks, as well as transfer documents, a Lockbox injunction can streamline payment collection and processing. Thanks to advanced lockbox technology, banks have set up several communication nodes that allow businesses to receive payments and deposits. A company sets up a mailbox to receive payments from customers. The bank processes deposits and communication of the day at its processing center. The entity`s transfer documents are scanned, payment information is recorded, and set-off updates are passed on to its receivables. Every night, the company`s Lockbox data is backed up for secure storage and easy access. Part of Lockbox`s processing is daily, allowing companies to improve their control and efficiency in receivables management, while improving audit controls and data security. Businesses benefit from extensive information deferral capabilities with daily access to deposit amounts, fund availability, and payment information, including electronic images of processed payments and coupons. Here are some lockbox agreements currently available on RealDealDocs: on the other hand, Lockbox banking can also be very risky.

Bankers who have access to the lockers are rarely monitored, which opens the situation to possible fraud. Fraud first takes the form of forgeries of cheques, because the cheques in the lockers provide all the information necessary for counterfeiting. As with most payment services, there are both pros and cons for lockbox banking. It offers businesses a very efficient way to make payments to customers. This is especially beneficial when a business is not able to deposit cheques on time or when it constantly receives payments from customers in the mail. [Important: A company can protect itself from such fraud by using a bank it trusts and monitoring its record constantly.] Bank lockbox services can be expensive. Banks charge a recurring setup fee and monthly fee. You also charge a fee per transaction. Your pricing system is usually not easy and difficult to read. Typical lockbox services process thousands of checks per month and calculate time. Busy minutes add up quickly.