Lockbox

A lockbox is a service offered by a bank, where it receives and processes checks on behalf of a company. The bank assigns a mailbox address to the company, which forwards this information to its customers. The customers mail their checks to the lockbox, where bank employees open the envelopes, scan all checks and accompanying documents, deposit the checks in the company's bank account, and make the scans available to the company through a website.

By using a lockbox, a company can eliminate some of the float involved in check processing, as well as eliminate check processing labor and improve controls over payment remittances.