box in a U.S. Postal Service facility, used to facilitate collection of customer remittances. The use of a lockbox also reduces processing float. The recipient's local bank collects from these boxes periodically during the day and deposits the funds in the appropriate corporate account. The bank also furnishes the company with a computer listing of payments received by account, together with a daily total. Because the lockbox arrangement has significant per-item cost, it is most cost-effective with low-volume, high-dollar payments.
box in a U.S. Postal Service facility, opened with a key or combination lock, that is used for the delivery of mail to an addressee who rents the box. A group of lockboxes that constitute a carrier route is called a lockbox section or Post Office Box Station. Bill payment envelopes are often addressed to lockboxes, which, as part of an arrangement with the recipient's bank, accelerate the processing of deposits, thus helping cash flow.
