Transforming Lockbox Processing Solutions

Legacy lockbox processing solutions are doing many banks a disservice by limiting revenue growth and failing to meet the needs of an increasingly electronic business landscape. What once was a solid revenue stream for many banks, lockboxes are becoming less lucrative as the popularity of B2B check payments decline.

Although checks remain the top B2B payment type for suppliers, the mean percentage of B2B payments made by organizations has been cut in half over the last five years as non-cash transactions shift to electronic forms of payment. For banks that still rely on outdated lockbox systems, it is difficult to accommodate new technologies that B2B organizations rely on, including e-invoicing, e-payments, supply chain financing and dispute management.

Improving Lockbox Processing Solutions

With Direct Insite’s PAYBOX® solution, banks don’t need to make costly investments in a completely new lockbox system. As a cloud-based, reverse lockbox solution, PAYBOX merges seamlessly with existing lockbox processing solutions, while streamlining integrated receivables processes and increasing the profitability of lockbox franchises. After implementing PAYBOX technology, banks can expect to achieve several key business benefits, including:

  • Revenue Growth: Banks can increase revenue by $1 to $2 per e-invoicing transaction and generate more revenue from interchange fees. Additionally, banks will be able to pursue new initiatives faster, such as supply chain financing opportunities.
  • Lower Cost and Risk: An efficient, integrated receivables solution reduces operating costs and mitigates risks for banks. Banks that implement the PAYBOX open receivables file to handle paper-based lockbox exceptions can expect to save tens of thousands of dollars immediately. Risk is also lowered as a result of robust archiving and reporting tools.
  • Improved Technology Flexibility: PAYBOX is compatible with any type of legacy lockbox system. The solution incorporates electronic invoicing, online approvals, dispute management, electronic payments, dynamic discounting and supply chain financing to improve return on investment in lockbox processing platforms. Fully customizable, PAYBOX enables banks to tailor their lockbox solutions to meet their unique business requirements and goals.
  • Increased Customer Loyalty: Direct Insite’s reverse lockbox solution strengthen banks’ relationships with suppliers that use their lockbox services by delivering value-add features that corporate accounts receivables professionals need. This includes features that increase Days Sales Outstanding (DSO), reduce invoice and collection costs by more than 90 percent, and achieve straight-through receivables posting rates of 80 percent or higher.

Lockbox processing solutions from Direct Insite allow banks to leverage their previous investments in traditional paper-based lockboxes in a modern e-commerce business environment by providing electronic invoice presentment and payment processing.

Next Steps for Implementing Lockbox Processing Solutions

If you are ready to transform your bank’s lockbox franchise, give us a call today at (610) 212-2487 or email us at for a private demonstration to show you how PAYBOX can help increase revenue and improve lockbox processes.

Accounts Receivable Solutions