The primary distinguishing feature of a lockbox system is that the firm pays the local bank to take on the administrative chores. Instead of customers mailing their payments to one of the company’s offices, they send all payments directly to a postoffice box. One or more times a day, the bank collects the checks from the box and deposits them for collection. Among the advantages of a lockbox arrangement is the potential reduction in mail float and a significant reduction in processing float. In some more sophisticated arrangements, banks capture daily invoice data on magnetic tape and forward this data to the company’s central office, thereby reducing the burden on the firm’s accounts receivable staff.