Merchants and Utility Companies across the country that have large dollar remittances, or process a large volume of remittances, are now able to collect them in the most expedient manner by using our Lockbox Payment Processing Service. All remittance information (including photocopies of checks, envelopes and customer correspondence) is promptly returned so merchants can quickly update their records. Merchants can also choose to receive an optional data file of pertinent customer information (such as name, account and invoice number as well as discounts taken) for automated input into their accounts receivable system. Plus, our system provides same-day availability of funds for checks drawn on selected financial institutions from coast to coast. Through our Alliance Lockbox Processor, we able to offer highly competitive prices for Lockbox processing services--and we'll strive to ensure special requirements can be met in order that clients are not forced into a one-service level fits all-inflexible process.

The following are some additional benefits and options offered by this service:

• A lockbox pick-up schedule for the designated zip code is coordinated with the postal system to speed the flow of mail to our Alliance Lockbox Processor's main processing center. Mail delays are minimized, internal processing time decreased, and Merchant and Utility accounts are credited quickly. In fact, most checks are deposited within hours of their receipt. Plus Merchants gain enhanced security and increased accuracy through automation.
• Manual deposits are inherent in most Lockbox services, but our service includes processing check payments without payment stubs included (these would normally be returned to the client for processing), further reducing additional handling on the part of our customers.
• Our manual Lockbox service can easily migrate to an electronic process (converting the paper check to an electronic transaction), electronically debiting Checkwriter's accounts and settling payments in 24-48 hours.
• Our Lockbox service accommodates 3rd party vendor files (including the popular CSG format) which integrates into and out of the Merchant's or Utility Companies' accounting system.
• Electronic payment processing through the Automated Clearing House (ACH) and the Federal Reserve Banking System is also available.   

Electronic Lock Box Benefits:

• Faster processing through the ACH Network (typically 24 - 48 hours clearing time) results in faster funds availability.
• Electronic check processing reduces check handling and clearing costs.
• Faster NSF return notification triggers early collection efforts and improved collection ratios.
• The number of NSF and fraudulent checks are reduced as they are processed ahead of paper items.
• Cost savings are estimated to be 11.5¢ per item when check collections are converted to preauthorized ACH transactions.
• Processing checks electronically eliminates NSF return fee exposure.
• Electronic check processing produces faster reconciliation, settlement, and deposit time frames.

Direct and Indirect Cost Savings:

• Paper-based payment transactions are costly due in large part to manual processing.
• Check payments require that that return payment documents be printed, inserted into envelopes, and mailed.
• If statements are mailed to consumers, the company must then receive and deposit checks either with dedicated staff or through a lockbox service.
• As checks are processed manually, they are subject to entry key errors, which create additional administrative burdens and potential negative customer service issues.

Monthly Lockbox Item Volume Pricing Components:

(a) Standard items are exact payments with stubs for full payments only.

(b) Non-Standard items are all other items that do not meet the criteria above, and; Non-exact payments, partial payments, multiple payments in the same payment envelope, and OCR rejects requiring manual entry.

(c) ACH pricing is for transaction submissions plus an identical amount for returns.

Special Note: Payments without payment stubs enclosed are processed for a flat fee of .50¢ per item.

Other Charges:       

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