Electronic Lockbox Services
Provident Bank has partnered with Payargo to provide online bill payment concentration.
Because 20-25% of all consumers prefer to pay their bills using the online bill payment service of their financial institution, this payment channel can create challenges for billers that are not setup for electronic receipt of these payments. Electronic lockbox, also known as online bill concentration, allows billers to receive their funds within 1-2 business days, improving cash flow while satisfying their customers that enjoy the security and convenience of paying all bills through their bank. Payment data is delivered to you daily in your required posting format and 100% of all payment data remains available online in a secure portal for easy research.
All billers should be recognized as electronic payees throughout the online bill payment networks. Even if you send as few as 500 statements per month to customers, you are receiving 100 online bill payment checks or more monthly that require manual posting and deposit. For organizations that are currently receiving funding electronically, but must post payments from an email or fax, this solution saves significant time and labor. Because the checks are being eliminated, the incremental cost to electronically receive and automatically post these payments is often a few pennies per transaction.
To learn more about how it may work for your business, contact one of our Cash Management Officers for an evaluation of your requirements.