lockbox

(noun)

a service offered to organizations by commercial banks that simplifies collection and processing of account receivables by having those organizations' customers' payments mailed directly to a location accessible by the bank

Related Terms

Examples of lockbox in the following topics:

  • Managing Collections

    • In general, a lockbox is a Post Office box that is accessible by a bank.
    • Another benefit of the lockbox service is that a company can maintain special mailboxes in different locations around the country.
    • A customer then sends payment to the closest lockbox.