Lockbox Deposits streamline how your business collects and processes check payments by shifting the entire workflow to the bank. Instead of manually handling incoming checks, payments are sent directly to a secure lockbox address where they are processed, digitized, and deposited into the appropriate Passport account.

This reduces processing delays, minimizes manual effort, and improves your overall cash conversion cycle.

Your lockbox address is shared during onboarding. Contact your Account Manager for details.

Why Use Lockbox Deposits

• Faster cash flow – Reduce delays in receiving and processing check payments
• Lower operational overhead – Eliminate manual handling of physical checks and deposits
• Better reconciliation – Standardized data and document capture simplify tracking and audits
• Scalable collections – Handle growing check volumes without increasing manual effort

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How Lockbox Deposits Work

Step 1: Mail Receipt

Customers send checks to your designated bank-managed lockbox address.

Step 2: Extraction & Scanning

The bank:

• Extracts checks and documents
• Creates digital images
• Shares structured data with Passport

Step 3: Matching & Review

PCE creates an External Transaction. The PayOps team reviews and matches it to an account

Step 4: Fund Realization

After the configured realization interval:

• Transaction moves to COMPLETED
• Funds become available to the customer

The realization interval protects against failed check settlements (e.g., insufficient funds, stop payments).

Step 5: Visibility in Passport

Users can:

• View check images
• Download correspondence documents
• Track transaction status

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Reversals

If a check fails (e.g., insufficient funds), a reversal is triggered.

Reversal flows are automatically triggered when marked as Returned.

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Transaction Lifecycle 

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Best Practices 

• Use the correct lockbox address to ensure payments are routed accurately. Sending checks to an incorrect address can lead to processing delays or lost payments.
• Include clear remittance information (such as account number or customer ID) with every check. This enables faster and more accurate matching, reducing the chances of funds being moved to Reserve.
• Set up an exception account for returns so that post-realization reversals can be handled automatically without manual intervention.
• Monitor your Transaction listing regularly to stay updated on incoming deposits and verify that transactions are processed and credited as expected.
• Download and retain correspondence documents for each deposit. Maintaining records is essential for audit, reconciliation, and dispute resolution.
• Act promptly on unmatched or reserved deposits by coordinating with support or internal teams. Early action helps minimize delays in fund allocation.
• Educate your customers on payment instructions, including the correct lockbox address and required details, to ensure smooth and error-free processing.