News Release

HSBC Launches Lockbox Remote Capture Capability Enabling Accounts Receivable and Back Office Conversion

New Feature Provides Efficient Management of Stranded Payments Including Elimination of “Mail Float,” Transportation Costs and Extended Processing Hours

17 April 2007

HSBC's Global Transaction Banking Services business today announced it is introducing a remote payment feature which helps facilitate the handling of stranded payments. The new feature marketed as "Lockbox Direct" enables corporate clients of HSBC to efficiently manage stranded payments or misdirected lockbox payments. "Stranded" payments are defined as misdirected lockbox payments that are mailed directly to the biller's corporate or service centers and walk-in payment centers as well as payments received at field-offices.
The new feature allows businesses the ability to electronically capture checks and remittance documents of stranded payments at the point of receipt. It also eliminates the need for further handling of paper which had not been possible before. 

"HSBC offers a wide range of receivable solutions that allow our clients to accept all forms of consumer payments. Lockbox Direct broadens this offering by providing businesses the added benefits related to straight through processing as well as convergence of paper and electronic payments," said James Colassano, product manager for HSBC Payments and Cash Management Commercial Products.  "Clients' will benefit from the elimination of 'mail float' and transportation costs; extended processing hours; more efficient work flows; reduced check processing and banking fees; faster notification of returns and fraudulent items."

Clients can now capture misdirected items at their desktop - both checks and remittances - with limited processing requirements or separate archiving. Single payments, multiple payments, check-only payments and remit-only transactions are available for remote capture and delivery to HSBC.  These remotely captured transactions will merge into the client's retail lockbox workflow and follow all business rules defined by the client and maintained in the core lockbox application (e.g. ARC, image archive, exception processing, etc). 

All payment transactions including misdirected payments received at client locations will be eligible for electronic check conversion, handled same-day as received and will be integrated into the accounts receivable posting file.  The check and document images can be accessed via HSBCnet, HSBC's online banking system, and will allow clients access to all their consumer receivables.

In 2006, the Association for Work Process Improvement (TAWPI) awarded HSBC the Excellence Award for lockbox integration of Check 21, image exchange and check conversion. The same year HSBC was named Best in Cash Management for the US and North America region in Euromoney's 2006 Awards for Excellence. According to magazine's 2006 Cash Management Poll, HSBC ranks # 1 in Global Cash Management and #2 in US Cash Management.

Media Contacts

• Juanita Gutierrez
• Juanita.gutierrez@us.hsbc.com
• HSBC - North America
• 212.525.6282