Lockbox Fees

Lockbox fees are charges from the bank for providing lockbox services. To put it simply, banks act as intermediaries, handling transactions between buyers and suppliers. When banks receive, process, and deposit a customer’s payment on behalf of a supplier, they charge a lockbox service fee. Lockbox services accelerate payment processing for accounts receivable teams, but AR leaders must weigh these costs against the benefits of this convenience. Finance organizations can reduce these fees by shifting buyers to digital payments and Digital Lockbox services. This approach automates the capture of virtual cards and ACH payments, bypassing the bank’s manual processing and lockbox service fees.

See how one company saved $120k annually by reducing these fees.