What do collection services typically include?

Collection services encompass a range of functions designed to efficiently manage the receipt of payments. The correct answer, which indicates the processing of paper checks and the operation of a lockbox, accurately captures essential activities involved in collection services.

Processing paper checks refers to the handling, recording, and depositing of physical checks received as payment for goods or services. This is crucial for organizations that still receive a significant volume of checks, as it allows them to maintain cash flow and record transactions appropriately.

Operating a lockbox is a form of collection service where payments are directed to a post office box controlled by a financial institution. This service streamlines the collection process, as banks can process and deposit checks faster than the organization's internal staff, thereby improving cash management and reducing the time and costs associated with handling incoming payments.

Overall, collection services focus on the efficient and timely gathering of funds owed to an organization, ensuring that cash flow remains stable and that receivables are managed effectively. The other choices focus on functions that are outside the scope of traditional collection services, such as investment management, individual online banking services, or limiting collections to only electronic utility bill payments, which do not encompass the broad spectrum of activities involved in effective collection services.