You use this component to collect and process incoming payments using the lockbox procedure. This is a service offered by banks in the USA.

Instead of sending your payments and payment advice notes to your bank’s office, you send them to a central bank (normally a P.O. Box). Once the payments have been received, the bank creates a data file from the payment advice data and payment amounts of the customer. The check amounts are credited to your bank account. The file itself is sent to you at regular intervals to enable you to update your ledgers.

This section describes the lockbox procedure by which payment transactions are generally processed in the USA.