Manager - What is a Lockbox?
We’re updating this article. Some screenshots or names may look older than what you see in the product.
A lockbox is a service provided by a bank where all payments are delivered to and processed by the bank.
- For Community Associations, banks process payments and link them to the correct account with the information housed within the payment coupon
- If no payment coupon exists, then a person must reconcile the check back to the appropriate account
At FRONTSTEPS, you may hear us refer to a "Digital Lockbox"
- As residents in a community make online payments, all the payment data is loaded daily into an Electronic Lockbox file
- This file can then be uploaded into the Accounts Receivable system to mark balances as paid
- In this case, there is no need for a manual reconciliation process as all payments are tied to account automatically