National Check Professional (NCP) Certification Practice Test

Which of the following is NOT a type of lockbox service?

1. Wholesale

2. Retail

3. Joint

4. Absolute

The correct answer is: Joint

The correct answer refers to "Joint" as it is not considered a type of lockbox service. Lockbox services are primarily designed to streamline the processing of incoming payments for businesses. The recognized types include Wholesale and Retail lockbox services. Wholesale lockboxes are used by businesses that receive a large volume of payments, such as utility companies or financial institutions. They focus on high-volume, low-value transactions where efficiency is critical. Retail lockboxes, on the other hand, are typically utilized by businesses that receive numerous small payments, which often require more detailed processing, such as invoicing information and customer account numbers. The term "Absolute" also does not typically refer to a recognized category of lockbox services. In the context of payment processing, 'absolute' might imply a complete or total service but does not define a specific type of lockbox. Thus, "Joint" is correctly identified as not fitting into the established classifications of lockbox services.