RapidAdvance now offers a lockbox account that acts as an intermediary between your credit card processing company and RapidAdvance. The account is perfect for businesses looking for an easy way to make electronic transactions and receive regular updates on their payment levels and activity. What should you know about the lockbox? Here’s where to get started:
What is the lockbox?
The lockbox has two purposes: to serve as a collection account for incoming customer payments and as a depository where payments are eventually transferred to the merchant’s checking account at their primary bank.
RapidAdvance uses the lockbox to collect the portion of its split toward the repayment of your cash advance. However, lockbox does more than process RapidAdvance’s daily split. It covers your merchant service provider’s processing fees.
What do you need to know?
Before starting your lockbox account with RapidAdvance, it’s important to know all the facts. Here are a few you may be wondering about:
- A $17 monthly maintenance fee is charged for each lockbox in addition to a one-time $12.50 fee for opening an account.
- Deposits made to the lockbox are ACH’d to the merchant’s bank account the same day and arrive within 24 hours.
- A minimum balance is required for lockbox accounts. Because they’re used for processing fees, the minimum balance must be available before each new deposit. Although you may notice a slight delay in receiving your portion of the daily batches after starting an account, once you’re able to maintain a consistent minimum balance, you will begin to receive your portion regularly.
- Once your advance is paid and you want to close your lockbox account, the minimum balance remaining will be sent to the customer through the ACH by lockbox. Any money owed from overpayment of cash advance will be refunded.