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e-Lockbox file consolidationHoward N. Forman, AAPSenior Vice PresidentElectronic Payments Consultant
© 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.
Utility Payment ConferenceSeptember 27, 2012
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What is an electronic lockbox?
Consolidation point for online banking bill payments and other “consumer-directed” bill payments
Facilitates an end-to-end electronic link between the biller and the bill payer
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What are the benefits of an electronic lockbox? Financial
– Accelerates receivables posting
– Reduces costs (electronic vs. paper processing)
– Simplifies payment reconciliation
Operational– Simplifies payment receipt process
– Maximizes electronic volume
– Allows for value-added processing
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Basic features of an e-lockbox service
Consolidates payments electronically from multiple sources/bill payment providers– “Best in class” providers will allow aggregation
of other data source (e.g., ACH, lockbox, etc.)
Delivers a “posting ready” data file
Allows transactions to be returned to bill payers, as necessary
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“Best in class” features of an e-lockbox service Direct connections to bill pay service
providers– Robust network of connections – including walk-
in bill payment service providers
– ACH CIE payments
Account validation– Incoming payments verified against acceptable
account structures
– The most sophisticated processors will use your MAM (positive file) for individual transaction validation and additional value-added processing
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“Best in class” features of an e-lockbox service Online exception management
– Transactions failing validation presented for review and decisioning via secure, online service
– Exceptions can be corrected or returned
– Posting file contains only “clean,” corrected payments
Online transaction search/query
Cross-reference processing– “Old account/new account” swapping
– Corrections to rejected transactions stored for use on subsequent payments from the same payor
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“Best in class” features of an e-lockbox service Reversibility processing
B2B payment acceptance– Leverage account validation features on incoming
ACH business payments
– “Unbundle” ACH CTX transactions
“Expedited” payment processing– Ability to deliver walk-in payments real-time/near
real-time
Dedicated implementation and operations teams
Howard N. Forman, AAPSenior Vice PresidentElectronic Payments [email protected]
© 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.
