---
title: "Lockbox: definition | Rex glossary"
description: "A bank service that receives a company's customer payments, deposits them and sends back the payment and remittance data for cash application."
canonical: https://www.rex.inc/glossary/lockbox
---

# Lockbox

A bank service that receives a company's customer payments, deposits them and sends back the payment and remittance data for cash application.

With a lockbox, customers mail checks to a post office box managed by the bank, which deposits them and captures images of the checks and remittance documents. Many banks include electronic payments in the same data file.

A lockbox speeds up deposits, but matching still depends on the remittance. If it's missing or doesn't match the invoices, the payment still needs research.

## Related terms

- [Cash application Matching incoming payments to the open invoices they pay and posting them in the ERP, so receivables and cash stay accurate.](https://www.rex.inc/resources/cash-application/what-is-cash-application)
- [BAI2 file A standard bank file format that reports account balances and transactions, used to import bank activity for cash application and reconciliation.](https://www.rex.inc/glossary/bai2-file)
- [Remittance advice The details a customer sends with or alongside a payment, saying which invoices it covers and explaining any deductions.](https://www.rex.inc/resources/glossary/what-is-remittance-advice)

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