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  1. #1
    Senior Member Reputation points: 86605
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    It amazes me the amount of misinformation that is being posted. Lockboxes are bad for a merchant with numerous NSF Days?

    Really? The purpose of a lockbox is to avoid ACH Requests Rejects, causing another NSF. A reserve for a Lockbox? Where did that information come from, why would you need a reserve? Changing Processors, some funders that are involved in the cc business may impose that condition, but not all.

    Since I am heavily involved in the Credit Card Processing World, call me with any questions.
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    Office: 727-233-1111
    Skype: fc-financial

  2. #2
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    Quote Originally Posted by Yankeeman07 View Post
    It amazes me the amount of misinformation that is being posted. Lockboxes are bad for a merchant with numerous NSF Days?

    Really? The purpose of a lockbox is to avoid ACH Requests Rejects, causing another NSF. A reserve for a Lockbox? Where did that information come from, why would you need a reserve? Changing Processors, some funders that are involved in the cc business may impose that condition, but not all.

    Since I am heavily involved in the Credit Card Processing World, call me with any questions.
    All lockboxes put a minimum reserve and put a one to 2 day delay on merchant receiving money.Have you ever done a lockbox?

  3. #3
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    Quote Originally Posted by Michael I View Post
    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.
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    Office: 727-233-1111
    Skype: fc-financial

  4. #4
    Senior Member Reputation points: 23276
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    Quote Originally Posted by Yankeeman07 View Post
    It amazes me the amount of misinformation that is being posted. Lockboxes are bad for a merchant with numerous NSF Days?

    Really? The purpose of a lockbox is to avoid ACH Requests Rejects, causing another NSF. A reserve for a Lockbox? Where did that information come from, why would you need a reserve? Changing Processors, some funders that are involved in the cc business may impose that condition, but not all.

    Since I am heavily involved in the Credit Card Processing World, call me with any questions.
    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.

  5. #5
    Senior Member Reputation points: 52185 ADiamond's Avatar
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    Quote Originally Posted by FCF Fund View Post
    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!
    Anthony Diamond
    Underwriter

  6. #6
    Veteran Reputation points: 135672 Chambo's Avatar
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    Quote Originally Posted by Yankeeman07 View Post
    It amazes me the amount of misinformation that is being posted. Lockboxes are bad for a merchant with numerous NSF Days?

    Really? The purpose of a lockbox is to avoid ACH Requests Rejects, causing another NSF. A reserve for a Lockbox? Where did that information come from, why would you need a reserve? Changing Processors, some funders that are involved in the cc business may impose that condition, but not all.

    Since I am heavily involved in the Credit Card Processing World, call me with any questions.
    almost ALL lockboxes have a reserve...for CC processing fees

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