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As Biegel explained, a lack of data standardization across payment tools remains a challenge to the reconciliation and cash application process, even when that data is electronic. LockboxData Headaches. Automating LockboxData – And Beyond. ” asked Biegel.
Many companies rely on a bank/service provider to handle outsourced lockbox processing. And, in many cases, the FinTech has customers that still use a lockbox, but they still have some centralized operation that receive checks. All of those payments can be scanned and automatically reconciled as part of that process.
According to Reed, Deluxe’s lockbox services process $2 trillion worth of paper check payments every year, and there is no silver bullet to transitioning that volume to electronic payment method all at once. “It really minimizes the disruption.”
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