Electronic payment methods and lockbox accounts reduce the effects of processing float and the overall cost of cash processing, which are major risks associated with cash collections. In combination with electronic transfers of account information or outsourced receivables matching, electronic payments and lockboxes will greatly reduce the level of effort required to register payments in customer accounts. Automated cash mobilization (ACM) also helps reduce the effects of processing float.

This tool defines lockbox accounts, shares leading practices to mitigate the effects of processing, and provides methods to consider.