Gaining Control Over Stranded Payments

Significant changes in the payments landscape and the intense growth of Remote Deposit Capture (RDC) over the last three years has triggered the necessary expansion of RDC from capturing check deposits only to providing the capability of capturing retail and wholesale remittance payments, as well.

That’s according to Sam Golbach, senior product manager for WAUSAU Financial Systems.

These changes have created new payment processing workflows and allow financial institutions and remittance processors (lockbox providers, corporate billers) to offer new, creative solutions to customers and in-house operations for capturing “stranded payments,” Golbach told me.

Stranded payments can be defined as payments received at remote locations via walk-in, over-the-counter, mail or other delivery methods. Goldbach said the steps to process, post and deposit are different than the central remittance processing site or sites. “Today, remittance solutions can be tailored based on customer needs or an organization’s internal processes to address the challenges that stranded payments pose,” he said.

To capture remote payments, remittance processors can combine remote and central payments into a single workflow with aggregated reporting, A/R file updates and archives, which creates a compelling business case when one considers the revenue-generating benefits realized through remote capture such as lower processing costs, improved workflow efficiency and funds availability and reduced bank accounts and sweeps, Goldbach explained.

He said early adopters are enjoying an innovative offering that is quickly gaining momentum and driving demand for other remittance processors to take notice and invest in remote capture technology. While vertical growth has been most evident in the healthcare segment, this is just the tip of the iceberg. Interest from brokerage, insurance and property management firms is quickly taking shape, Goldbach noted.

“For lockbox providers, this is a solution that continues to open doors to new markets, enhancing existing customer relationships, driving additional fee revenue, expanding market share and increasing deposits to succeed in today’s marketplace,” he concluded.

Is your lockbox offering corporate remittance capture?

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