The preceding control systems were all designed primarily for the receipt of payments made by check. But what if the primary form of payment is cash? Unlike checks, cash is completely untraceable, and so is the preferred asset to steal. Thus, cash handling calls for tighter physical controls. The essen­tial cash receipts process flow is [...]

Lockbox truncation is the process of converting a paper check into an elec­tronic deposit. The basic process is to insert a check into a check reader, which scans the magnetic ink characters on the check into a vendor-supplied software package. The software sends this information to a third-party ACH processor, which typically clears payment in [...]

A lockbox is essentially a separate mailbox to which deposits are sent by customers. The company’s bank opens all mail arriving at the lockbox, de­posits all checks at once, copies the checks, and forwards all check copies and anything else contained in customer remittances to the company. The bank may also scan the checks and [...]