Lock Box - Electronic Conversion

Electronic Conversion

Modern operations usually "capture" images of the checks and associated documentation (payment coupons, for example) into a digital format for use in computer systems (i.e., JPEG files). These files can then undergo data entry for further specialized processing. Banks often use specialized equipment that can scan hundreds, or thousands, of checks per minute.

Due to the Check 21 Act, some lockboxes even wholly convert some checks to electronic data, and the paper checks are shredded and never actually returned to the originating bank.