Lockbox refers to:
A)customers send payments to a post office box the bank maintains.
B)customers send payments to company's mail box that has a lock.
C)customers send payments to collection company's mail box.
D)None of the above

Question

Quizplus · Accepted Answer

Lockbox is a service offered by banks where customers send their payments to a post office box maintained by the bank. The bank then collects and processes the payments on behalf of the company. The use of a lockbox allows for faster and more efficient processing of payments, as well as increased security and accuracy. Option B and C are partially correct, but the key feature of lockbox is the involvement of a bank to assist in payment processing. Option D is incorrect as one of the options is correct.

Lockbox Refers To