There are several key questions you will want to consider when looking for a lockbox vendor, including:
- Can the vendor put lockboxes in strategic locations close to your customer base?
- What controls are in place to protect your company from check fraud?
- What controls are in place to assure quality services?
- Does the lockbox carrier work for the bank?
- How long does it take for the check to be applied to the account after the customer’s check arrives at the lockbox?
- What types of lockboxes do they provide (wholesale, retail, electronic)?
- What services are provided in case of audits?
- Can they customize their interface to meet your company’s requirements?
- What are the associated fees for opening, closing and moving lockboxes?
- Do they offer the following services:
- Imaging of payments as they are received
- Payment data capture per customer setup instructions
- Viewing of daily images over the internet
- Daily data entry and transmission of remittance detail
- Credit card and/or foreign check processing
- Same-day lockbox deposit total
- Detail reporting
- Delivery of back-up documents such as remittance documents, check photocopies and account maintenance items
Be sure to determine what you expect to get out of selecting a new lockbox vendor, and make a checklist that is custom to your department’s needs. Additionally, do your due diligence when researching the vendor. Make sure they are reputable and provide quality services. If you do not know anyone who uses their services, you may consider asking the vendor if they could get you in contact with two or three of their customers.