A lockbox service is a solution offered by FirsTech where payments, typically checks, are sent directly to a designated post office box. FirsTech's team of payment experts collects these payments, processes them, and deposits them into your business account. This service accelerates the payment collection process, improves cash flow, and enhances operational efficiency by outsourcing payment processing tasks to your partners at FirsTech.

Traditional lockbox services involve physical collection and processing of payments – typically a mailed paper check. ELockbox solutions maintain the digital integrity of a payment, ensuring payments that are made through a customer’s online banking platform aren’t converted to a paper check by the financial institution. By keeping the payment digital, as intended, eLockbox securely handles the electronic payments and provides automated processing. ELockbox solutions offer faster processing times, shortened days of sales outstanding (DSOs), and enhanced security.

Both lockbox and eLockbox solutions can process a wide range of payments, including checks, and electronic checks (eChecks). Additionally, the technology can be applied to any scannable documents for data extraction, including explanation of benefits (EOBs), corporate mail, customer satisfaction surveys, and more. Through optical character recognition (OCR) and robotic process automation (RPA) the information is digitized and made available for analysis and application in your business.

Lockbox and eLockbox solutions are scalable, capable of handling varying transaction volumes and growing alongside your business. It’s essential to evaluate scalability features, such as capacity, processing speed, and flexibility, to ensure the chosen solution can accommodate future growth. 

The costs and fees associated with lockbox and eLockbox services vary depending on factors such as transaction volume, service level, and additional features. Typically, fees may include setup fees, monthly maintenance fees, per-item processing fees, and transaction fees.

Reconciliation involves matching incoming payments processed through the lockbox or eLockbox with corresponding invoices or accounts receivable records. This process may be automated through integration with financial systems, reducing manual effort and ensuring accuracy.

Implementing a Lockbox or eLockbox solution involves collaboration between your business and the financial institution. The process includes setting up the service, establishing communication protocols, integrating with existing systems such as accounting software or enterprise resource planning (ERP) systems, and testing to ensure seamless operation. Typically, all of this can be managed within 30 to 60 days. 

Lockbox and eLockbox solutions provide businesses with real-time visibility into incoming payments, transaction details, and reporting capabilities. Businesses can monitor payment statuses, track deposits, and access detailed reports for reconciliation and financial analysis.

Lockbox and eLockbox solutions prioritize security, employing encryption, secure data transmission protocols, and access controls to protect sensitive financial information. Additionally, they adhere to industry regulations and compliance standards to ensure data security and confidentiality. As a FirsTech partner, your data is protected by HIPAA, SOC, and PCI compliance. 

Transitioning to a Lockbox and eLockbox solution involves careful planning, communication, and coordination between your business, the financial institution, and any third-party vendors. Establishing clear timelines, training staff, conducting thorough testing, and providing ongoing support are key elements to ensure a smooth transition process. FirsTech's Lockbox operations team are skilled transition managers and have successfully onboarded multiple Financial Institutions and their commercial banking portfolios, multi-state utility companies, and more.