A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:
A) electronic funds transfer
B) automated clearing house
C) Check 21
D) Lockbox

Question

Quizplus · Accepted Answer

The method described is a lockbox service, which involves the customer mailing their payment to a designated post office box. The bank then collects and processes the payments, allowing for faster access to funds and improved cash flow management. Electronic funds transfer, automated clearing house, and Check 21 all involve electronic transactions and do not require physical checks to be mailed to a bank's postal address.

A Customer Is Instructed to Send His Remittance Advice and Check