Firms that receive a large volume of checks use the following to speed up availability of funds:

Question

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Concentration banking is a system in which a firm maintains accounts at multiple bank branches and transfers funds from these accounts to a central account. This allows for quicker availability of funds as checks can be deposited at these multiple branches and then transferred to the central account for processing. This method is helpful for firms that receive a large volume of checks as it speeds up the availability of funds. Retail banking and money market deposit accounts may not be as effective in speeding up the availability of funds for firms with a large volume of checks.

Firms That Receive a Large Volume of Checks Use the Following