Quote:
Originally Posted by billy ross
I just mailed a (mercifully low) gas bill off to Newark, NJ. This is a fairly recent change. Do you think that PGW outsourced its billing, or do you think they have a satellite office in Newark?
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It's probably just a lockbox account. My insurance company does it to (as well as credit card companies, mortgage companies, etc.)
Basically, it is a service your bank provides (for a fee). You have all your customer bill payments mailed there. They process the checks, load the money to your account and send you an electronic file of account numbers and payments so you can load it into your accounts payable system.
Part of the efficiency is that the machines read the numbers off the bill stub and the check so there are no keying errors and it is much faster.
You save a bundle from having your own internal employees handling check processing and it is deposited same day.