Watching TV streaming through the Internet is all the rage. But many people still also watch traditional TV. The same goes for how people receive and pay their bills. While many consumers seek omnichannel payment options, many still prefer to pay by paper check—as many as 11.2 billion checks were used to make payments in 2021. Others may toggle back and forth between digital and traditional or offline options in any given month for any given bill.
But checks do come at a cost for both you and your customer. According to 2022 research by PYMNTS, “Checks probably have the highest labor cost associated with them.” Advances in technology surrounding the use of checks “often offset the value in the cost of labor to produce them.” Lockbox processing solutions are one of those advancements. They can help slash expenses, boost cash flow, and eliminate equipment and software maintenance. They also allow businesses to offer customers the ability to pay via check while providing digital payment solutions. This creates a properly integrated receivables solution tailored to their customers’ needs.
An end-to-end check payment process
Lockbox processing can help you streamline the entire check payment process, including mail acceptance, imaging, exception handling, settlement, and remittance reporting.
The process typically works via a third-party partner that collects and handles incoming payments. Image-based technology allows the vendor to capture data swiftly, reducing errors and paper usage. After checks are deposited, the firm automatically creates data files to update accounts receivable systems. There are several benefits to this type of outsourced lockbox processing:
- Eliminate equipment and software maintenance with state-of-the-art processing technology.
- Drive unit costs down with the help of high-volume processing centers that get the job done quickly and efficiently.
- Minimize staff time to open envelopes, allowing them to focus on more revenue-generating activities.
- Accelerate cash flow, reduce the number of days sales outstanding, and optimize working capital with centralized processing that expedites settlement timeframes.
- Adopt a tailored solution that mitigates risks by keeping up with evolving security and compliance standards so you don’t have to.
Lockbox processing enables businesses across industries with low and high check volumes to get a complete view of accounts receivables at every stage when executed through a single platform connected to distributed processing centers.
eLockbox integrates offline with online
In addition to the traditional lockbox, there are many advantages to offering eLockbox. eLockbox processing converts an online bill pay bank check into an electronic receivable. The financial institution portal acts as a bridge to making the payment. The digital check then gets sent to the business’s depository account. Compared with traditional lockbox check processes, eLockbox can reduce the timeline from seven days to the next business day. This lowers both manual labor and machine costs for businesses. On the whole, eLockbox can deliver payment information to your accounting software for error-free posting with a 98% conversion rate.
Lockbox and eLockbox with OSG
To meet our clients’ needs across industries, OSG offers traditional and eLockbox solutions.
We can collaborate with clients to deposit checks directly into bank accounts via secure transmission. Custom payment files, shared business rules, and same-day exception handling allow client flexibility and process control. We seamlessly integrate our lockbox solutions within our expansive transactional suite, allowing customers to pay when and how they want. We also provide several additional benefits, including:
- Ability to support lockbox & remote lockbox, where clients use OSG software and desktop scanning within the office, or a hybrid of both
- Minimized check fraud by accelerating return item check notifications
- Option to access check images online via the lockbox portal
- Omnichannel receivables dashboard portal that tracks how your payments come in, regardless of method or channel
- Tight coordination with our print and mail facilities
From Print to Payment, we can do it all. For more information on OSG’s lockbox solutions, schedule a demo today.