General
In general, a lockbox is a Post office box (PO box) that is accessible by a bank. A company may set up a lockbox service with their bank for receiving customers' payments. The company's customers send their payments to the PO box. Then the bank collects and processes these payments directly and deposits them to the company's account. Typical costs are several cents per transaction to as high as one dollar or more.
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.
Read more about this topic: Lock Box
Famous quotes containing the word general:
“I suggested to them also the great desirability of a general knowledge on the Island of the English language. They are under an English speaking government and are a part of the territory of an English speaking nation.... While I appreciated the desirability of maintaining their grasp on the Spanish language, the beauty of that language and the richness of its literature, that as a practical matter for them it was quite necessary to have a good comprehension of English.”
—Calvin Coolidge (1872–1933)
“Any general statement is like a cheque drawn on a bank. Its value depends on what is there to meet it.”
—Ezra Pound (1885–1972)
“In communist society, where nobody has one exclusive sphere of activity but each can become accomplished in any branch he wishes, society regulates the general production and thus makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticize after dinner, just as I have a mind, without ever becoming hunter, fisherman, shepherd or critic.”
—Karl Marx (1818–1883)