Lockboxes

Lockbox banking is a service provided by banks to companies for the receipt of payment from customers. Under the service, the payments made by customers are directed to a special post office box instead of going to the company. The bank goes to the box, retrieves the payments, processes them and deposits the funds directly into the company's bank account. Lockbox banking can also be very risky. Bank employees who have access to lockboxes are rarely supervised, which opens up the situation to possible fraud.