Corporation, a business unit of UPS
which helps customers manage risks and protect finances, today announced a new service, UPS Capital C.O.D. Delayed Deposit. The service is designed to improve how and when companies that accept C.O.D. can deposit their customers’ checks. This new service provides a safe, secure, technology-based solution to control the timing of individual check deposits.
UPS research shows that 33 percent of C.O.D. shippers defer deposits of C.O.D. payments when requested by their customers. The primary reason is to help their customers who do not have cash now but will be able to pay later. Respondents feel that honoring customers’ requests for deferred C.O.D. check deposits is important to their business, enabling them to extend credit, improve customer relationships and increase sales.
“For years, businesses have held their customers’ checks and manually deposited them on agreed-upon future dates,” said Bob Bernabucci, president of UPS Capital. “Today, C.O.D. is still a very popular way for businesses to extend payment terms, build relationships and gain new business. C.O.D. Delayed Deposit automates this process, thereby saving businesses both administrative expenses and the risks associated with manually managing checks.”
C.O.D. Delayed Deposit offers many unique features, including:
- Flexibility in determining the deposit timing of individual checks
- Email notifications alerting the customer of new C.O.D. deliveries awaiting deposit
- Secure web access to view check images and manage deposits
- Daily electronic delivery of reports providing reconciliation of C.O.D. activity and advanced notice of scheduled deposits and returned items
- An option for automatic second presentation of dishonored checks
- Automatic daily deposit of funds into a shipper’s bank account of choice
- Reduction of bank fees associated with check processing
- Use of only one UPS account to manage all checks.
“The new service provides considerable time savings and improves cash flow,” said Peter Park, Manager for Cinderella Divine, a women’s fashion designer. “C.O.D. Delayed Deposit improves our accounts receivable outstanding by as much as five days, saving us manual processing, stamping and a daily trip to the bank. By easily seeing all delayed checks, we can negotiate our position and easily reconcile between our account ledger and the UPS portal.”