[MCNetwork]

Well we're here to help educate people but it's very irritating when people pretend they're know-it-alls when it's obvious they're not. A little humility wouldn't hurt!

[ridextreme]

Beg your pardon, but, the main purpose of a "Lockbox" is to negate any NSF days. If the merchant is to receive 5K in deposits and his
payback percentage is 20% - he receives 4K in his bank account. Credit card funds are ACH which are immediately credited to a merchants account, or at least show pending that day and most banks give access to those funds.

No. The purpose of a SPLIT is to negate any NSF days. That's the whole point in dong a splt, because of too many NFS's and/or negative days would make it hard to collect ACH payments (because they would bounce).

The purpose of a lock box is to collect the split when it's impossible to change processors, either due to complicated POS systems, locked terminals which buying new ones would be a deal killer, or even if the merchant refuses to split and lock boxes are an option.

Now our next lesson would be Split ACH. Do you have any idea what the heck that is? This is a tough one.

[SBF]

I have facilitated lockbox/diversion account deals for years.. sometimes its the only way.. If there is an issue with a delay in access to funds.. I simply advise my merchant to set-aside 20% of the advance until they adjust to the delay.. it's never been a problem. Sterling rocks this process for sure!

[Yankeeman07]

All lockboxes put a minimum reserve and put a one to 2 day delay on merchant receiving money.Have you ever done a lockbox?

At least 2 The initial delay is about 2 days, but after the merchant is receiving funds everyday, assuming he does processing every business day. If there is zero processing, no payment is deducted.

[ADiamond]

Paysmith requires a reserve. I believe they are run by Citibank and when doing a lockbox with them thats typically why most lenders require 1 to 2 batches before funding, aside from confirming the transition is complete.

They are partnered with US Bank, and the reserve amount is up to the lender. The typical rule of thumb is to wait until a few batches show to ensure the client is batching normal volume. It will also take a good 48-72 business hours for the first batch to show once the switch in processing deposits is made.

Aside from that I am just amazed at how misinformed people are here in the process in general. People who claim to have been in the business for YEARS!