Lockbox AR Payment Processing consolidates corporate check payments, converting them into electronic transactions. Our clients direct consumer checks into "lock boxes".
The retail lockbox is especially useful for companies with high-volume, low-dollar transactions. The wholesale lockbox is especially useful for companies with low-volume, large-dollar remittances.
The paper checks are then processed electronically through the Automated Clearing House (ACH) Network. Electronic check processing produces faster reconciliation, settlement, and deposit time frames.
FAST RECEIVABLES PROCESSING
NPS® offers a process whereby payment checks are funneled into one location for processing and subsequent direct deposit. Corporate and Utility Company receivables are collected and processed quickly so funds are available sooner with our Lockbox Payment Processing Service.
Customers mail payments using a designated post office box number and a unique zip code that is easily identified and accurately routed by the post office.
Companies across the country that have large dollar remittances, or process a large volume of remittances, are now able to collect them expediently by using this Service.
All remittance information (including photocopies of checks, envelopes and customer correspondence) is promptly returned so clients can quickly update their records.
Clients can also choose to receive an optional data file of pertinent customer information (such as name, account and invoice number as well as discounts taken) for automated input into their accounts receivable system.
LOWER YOUR COSTS!
Paper-based payment transactions are costly due in large part to manual processing. Electronic check processing reduces these check handling and clearing costs. The number of NSF and fraudulent checks are reduced as they are processed ahead of paper items in the order of presentment at a bank
Cost savings are estimated to be around 11.5¢ per item when check collections are converted to preauthorized ACH transactions.
Check payments require that that return payment documents be printed, inserted into envelopes, and mailed. Our manual Lockbox service can easily migrate to an electronic process (converting the paper check to an electronic transaction), electronically debiting customer accounts and settling payments in 24-48 hours. Faster processing through the ACH Network (typically 24 - 48 hours clearing time) results in faster funds availability.
OTHER BENEFITS
A lockbox pick-up schedule for the designated zip code is coordinated with the postal system to speed the flow of mail to our main processing center. Mail delays are minimized, internal processing time decreased, and Merchant and Utility accounts are credited quickly. In fact, most checks are deposited within hours of their receipt. Merchants gain enhanced security and increased accuracy through automation.
How To Get Started!
NPS® PAYMENT PROCESSING offers competitive pricing for Lockbox Processing Services--Let us know your requirements.
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