A customer is instructed to send his remittance advice and check to a bank's postal address.This method for collecting customer cash receipts is called:

Question

Quizplus · Accepted Answer

The method described in the scenario, where a customer sends a check and remittance advice to a bank's postal address for processing, is known as a lockbox. Option A, electronic funds transfer, involves the electronic movement of funds between bank accounts without the need for physical checks. Option B, an automated clearing house, is a system used for electronic transfers of large volumes of credit and debit transactions. Option C refers to a federal law that regulates the processing of checks. Therefore, the best choice would be D, lockbox.

A Customer Is Instructed to Send His Remittance Advice and Check