A lockbox is a special postal address that is used solely for the purpose of collecting payments. Mail sent to lockboxes is delivered more frequently than payments sent to business addresses and processed faster than payments processed by in-house staff. Available for more than 50 years, lockboxes are a well-tested cash management tool.

Who typically uses lockboxes?
Any organization that receives payments through the mail can use a lockbox. Utilities, local governments, medical practices, property management firms, charities, office supply companies, and corporations of all kinds benefit from lockbox services.

How do I know if I need a lockbox?
Your organization may be able to benefit from a lockbox if you receive payments through the mail and are interested in:
increasing your profitability through improved cash flow
receiving faster payment information to improve customer service
reducing your operating expenses
reducing your payment risk

Contact RemitStream Solutions to learn about a lockbox solution that would work for you.

How does a lockbox work?
Lockbox processing can vary widely. In its simplest form, the following process is followed:

The biller sends a bill to its customer.
The customer mails the check payment and return (billing) document to a lockbox.
The payment is picked up at the Post Office.
The mail is opened and sorted at the lockbox processing location.
Dollar amounts are keyed into the lockbox provider's system.
Image copies of checks are made.
Checks are encoded and endorsed.
Additional invoice data is captured if required.
Payments are deposited at the bank.
Remittance documents and check copies are reassociated, assembled into a remittance package, and sent to the biller.
The biller's accounts receivable system is updated.



RemitStream Solutions provides the full array of lockbox processing options through our own image-enabled process. To find out more about our customized solutions, contact RemitStream Solutions

Why should I use a lockbox provider instead of processing payments in-house?
Lockbox providers typically process large volumes of checks and billing documents on state-of-the-art equipment, using streamlined procedures at key collection sites. Financial institutions and their customers generally cannot establish such a processing system without higher costs and procedural difficulties. RemitStream Solutions' financial institution partners and their customers also enjoy other significant benefits.

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