Lockbox Check Truncation is the changing of a
personal paper check into an electronic check. The check becomes
an Electronic Funds Transfer (EFT) and is processed through the
Automated Clearing House (ACH).
The ACH is the federally regulated electronic
payment network used by 95% of US financial institutions.
The Lock Box Check Conversion program
currently being conducted by the National Automated Clearing
House Association (NACHA) permits companies to:
Electronically convert a check received in payment
for goods or services at the lock box (point of receipt) and
processing the payment through the Automated Clearing House
(ACH) network. Your company or our lockbox processing team copies payment information
electronically, including routing number, account number, payer
and check account number. Payment information is then
transmitted to the ACH network. The ACH entry flows through the
ACH network and debits the payee account. Settlement is carried
out in the same manner as for other ACH transactions. The
company retains the check, or a legally permissible copy of the
check, according the requirements of the Uniform Commercial
you would like an outsourced solution that can provide your
company with fast funds settlement and the ability to access
transaction records on-line we are your solution. Contact
How Does It Work?
Merchant receives check for payment of goods
or services via mail. A check reader or other optical device
scans the check. The volume of checks processed is a key factor
in deciding hardware needs. Smaller volume merchants might best
be served by a system that requires some data entry. Larger
companies may opt for a hardware configuration that automates
the entire process: opening envelopes, reading the account
number and dollar amount, imaging and archiving the check,
integrating payment information into existing accounting
packages. It is important to understand that each company has
unique needs and consequently a unique solution. Hardware costs
can vary greatly. When the batched checks are read they are then
transmitted to the processor for presentment through the ACH.
Payment is made to the merchant in 24-48 hours. The process is
fast and easy to perform: no more bank runs, lost or stolen
What Are The Benefits?
The ACH will transfer the funds electronically. The funds will
be transferred into the merchant account in 24-48 hours. Neither
the merchant nor the bank has to process a single paper check.
Low transaction rate. Low NSF fee. No deposit slips to fill out.
No lost or stolen checks to worry about. No bank runs to make.
No bank deposit fees. NEVER an NSF or processing fee from the
bank to the merchant. NSF checks will show up in several days as
opposed to weeks. You can redeposit immediately. Reduced
handling costs. This program is about money - you get your money
a lot faster and improve your float time.
Because of the unique needs every business has
we would need more information to suggest a solution to your
us for your solution.