When utilizing a lockbox system, a customer typically sends a check to the bank, a bank employee picks up the check and processes the check electronically and then sends record of payment to the company's finance center.

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In a lockbox system, customers send their payments directly to a post office box that is accessible by the bank. The bank then processes these payments and deposits them directly into the company's account, streamlining the collection and processing of receivables.

When Utilizing a Lockbox System, a Customer Typically Sends a Check