Business glossary
Lockbox service
A bank service that receives customer payments and processes them for a business.
Example
A customer sends a check to a bank-operated collection address. The bank processes the payment and supplies deposit or remittance information so the business can match it to outstanding invoices.
How it differs from related terms
A lockbox handles receipt and processing of payments. It is not the same as a payment gateway or the business's street address. Clear remit-to instructions reduce the chance that a payment is sent to the wrong place.
Frequently asked questions
What is an example of lockbox service?
A customer sends a check to a bank-operated collection address. The bank processes the payment and supplies deposit or remittance information so the business can match it to outstanding invoices.
How should lockbox service be interpreted?
A lockbox handles receipt and processing of payments. It is not the same as a payment gateway or the business's street address. Clear remit-to instructions reduce the chance that a payment is sent to the wrong place.