The information contained herein is the published property of Mail Systems Management
Association (MSMA). The MDC Study Guide includes basic information and is to be used as a
basic reference tool, only. For specific USPS regulations, requirements, and restrictions, sign up
to receive electronic federal register notice updates, maintain a professional network thru
MSMA and add the online Domestic Mail Manual as a ‘My Favorite' to your Internet Browser.
Acknowledgement
The content within this study guide has been tailored to assist individuals with their study
preparation to the Mailpiece Design Consultant exam. Information used within this study guide
has been collected from various public resources and condensed for your convenience.
This 2014 revision of the study guide was a collaborative effort of a team of individuals who
gave their time and expertise to make sure the information was accurate and up to date.
Kathy Battin, CMDSM, MQC, MDC, MDP – Vice President Postal Affairs & Project Management,
Postal Source, Davenport, Iowa
Linda S. Ferrell, CMDSM, MDC, MCOM, MDP, MA – Retired, Houston, TX
Mark Hale, CMDSM, CMDSS, EMCM, MDC, MDP – Account Executive, Onsite Management
Group (OMG, LLC), Cincinnati OH
Darlene Handy, LSSGB, CMDSM, MDC – Director, Intake Center Operations & Claims
Fulfillment, Universal American, Houston, TX
Paul Kovlakas, MDC – Director, Postal Relations, Pitney Bowes Inc., Washington DC
Chris Kula, CMDSM, CMM, EMCM, MDC, MDP – Manager, Mail Center Operations & Direct
Mail Development, RuffaloCODY, Cedar Rapids, IA
Shawn Martin, CMDSM, MDC – Service Delivery Manager, Novitex Enterprise Solutions,
Cleveland, OH
Betsy Shortell, CMDSM, EMCM, MDP, MDC – Director Harvard University Mail and Distribution
Services, Boston, MA
Jud Thurman, CMDSM, CMDSS, MDC, MDP – Business Manager, Gospel Minutes Publications,
Fort Worth, TX
Thad Weikal, CMDSM, EMCM, MDC, MDP – Mail Center Supervisor, Kenneth Copeland
Ministries, Fort Worth, TX
Janet Lockhart-Jones, M.S., Ed.D., SCPM, MDC – Curriculum Manager, Pitney Bowes Enterprise
Learning
I would like to extend a special thank you to Barbara Fahy, MSMA National President, for her
diligence in overseeing this project and keeping it on schedule.
Cordially,
Jane Patton, CMDSM, MDC, MDP
VP of Education, Mail Systems Management Association
Manager Distribution Center Services, Texas Guaranteed
Table of Contents
1 Postal Processing Overview ........................................................ 1
Shaped-Based Initiative............................................................................................................... 1
Postal Operations ........................................................................................................................ 2
Classes of Mail............................................................................................................................. 3
Priority Mail Express Service ................................................................................................... 4
First-Class Mail Service .......................................................................................................... 11
Periodicals ............................................................................................................................. 13
Standard Mail Service ............................................................................................................ 13
Package Services .................................................................................................................... 15
USPS Incentive Programs....................................................................................................... 17
2 Processing Methods & Categories .............................................. 1
Manual and Automated Processing Methods ............................................................................ 1
Physical Standards for Commercial Letters and Postcards ......................................................... 3
Automation Letters and Cards .................................................................................................... 5
Mailpiece Materials, Construction and Sealing ....................................................................... 5
Incompatible Materials and Sealing Methods......................................................................... 7
Physical Standards for Commercial Flats .................................................................................... 8
Retail and Nonautomation Flats.............................................................................................. 8
Automation Flats ..................................................................................................................... 9
First-Class Mail Automation Letters, Postcards and Standard Mail Automation Letters ....... 9
3 Work Share Incentives ................................................................ 1
Mailing Services .......................................................................................................................... 1
Retail Mailing Services ............................................................................................................. 1
Discount Mailing Services ........................................................................................................ 1
Online Mailing Services ........................................................................................................... 1
Mail Service Providers ............................................................................................................. 1
Work Share Incentives ................................................................................................................ 2
Move Update .............................................................................................................................. 3
Alternative Methods................................................................................................................ 4
Certificate of Compliance ........................................................................................................ 4
Address Change Service .......................................................................................................... 4
Ancillary Service Endorsements .............................................................................................. 4
National Change of Address Linkage System .......................................................................... 5
National Change of Address Linkage System Mail Processing Equipment.............................. 5
Outsourcing ................................................................................................................................. 6
Selecting an Outsourcing Partner ............................................................................................ 6
Comparing Costs: In-House vs. Outsourcing ........................................................................... 6
Mail Service Providers ................................................................................................................. 7
Planning a Discount Mailing ........................................................................................................ 8
4 Addressing and Automation ....................................................... 1
Addressing Guidelines ................................................................................................................. 1
Address Management Software Products & Services ............................................................. 1
Delivery Point Validation ......................................................................................................... 1
Locatable Address Conversion System .................................................................................... 2
Address Element Correction.................................................................................................... 2
International Addressing Requirements ................................................................................. 4
Window Envelopes and Inserts ................................................................................................... 5
Barcode/Window Clearance.................................................................................................... 5
Barcode/Label Clearance......................................................................................................... 7
Address Labels ......................................................................................................................... 7
Mailpiece Clear Zones and Free Space .................................................................................... 8
Printing Guidelines .................................................................................................................. 9
Address Block Skew ............................................................................................................... 10
Barcodes .................................................................................................................................... 12
Intelligent Mail barcode ........................................................................................................ 12
Decoding the Intelligent Mail Barcode .................................................................................. 15
5 Extra Services.............................................................................. 1
Certificate of Mailing................................................................................................................... 1
Certified Mail............................................................................................................................... 1
Collect on Delivery ...................................................................................................................... 2
Restricted Delivery ...................................................................................................................... 2
HOLD FOR PICKUP ....................................................................................................................... 3
USPS Tracking .............................................................................................................................. 3
Insurance ..................................................................................................................................... 4
Registered Mail ........................................................................................................................... 4
Adult Signature ........................................................................................................................... 5
Return Receipt ......................................................................................................................... 5
Signature Confirmation ............................................................................................................... 7
Special Handling .......................................................................................................................... 7
6 Ancillary Endorsements .............................................................. 1
7 Remittance Mail ......................................................................... 1
Business Reply Mail ..................................................................................................................... 1
Business Reply Mail Formats and Design Standards ............................................................... 2
BRM Labels .............................................................................................................................. 3
Facing Identification Marks ..................................................................................................... 4
Obtaining FIMs and Barcodes.................................................................................................. 4
Printing Standards for Reply Mail............................................................................................ 4
Qualified Business Reply Mail (QBRM) .................................................................................... 5
International Business Reply Service ....................................................................................... 7
Courtesy Reply Mail .................................................................................................................... 8
Meter Reply Mail......................................................................................................................... 9
8 Postage Methods ........................................................................ 1
Postage Stamps ........................................................................................................................... 1
Forever Stamps........................................................................................................................ 1
Precanceled Stamps ................................................................................................................ 1
Postage Meters & PC Postage Products...................................................................................... 4
Date and Postage Corrections ................................................................................................. 7
Mailing Date Accuracy and Mailing Periods ............................................................................ 8
Permit Imprint (Indicia) ............................................................................................................... 9
Use of Permit Imprint .............................................................................................................. 9
Stealth Postage ...................................................................................................................... 10
9 Private Express Statutes ............................................................. 1
What is a Letter? ..................................................................................................................... 2
Suspensions of the PES ............................................................................................................ 2
Criteria for Extremely Urgent Letter Suspension of PES ......................................................... 2
Material Not Considered Letters ............................................................................................. 2
PES Resource Information ....................................................................................................... 3
10 History of The Postal Service .................................................... 1
The Postal Service Begins ............................................................................................................ 1
The Pony Express ........................................................................................................................ 2
ZIP Code ...................................................................................................................................... 2
Postal Reorganization Act ........................................................................................................... 3
The Postal Service Board of Governors....................................................................................... 4
Transformation Plan.................................................................................................................... 5
The Postal Accountability and Enhancement Act of 2006 .......................................................... 6
Guiding Principles for Implementation of the New Law ............................................................. 7
Challenges Facing the USPS ........................................................................................................ 7
Significant Years in U.S. Postal History........................................................................................ 8
Mailing Industry Resource Publications ...................................................................................... 9
11 Postal Knowledge Review ......................................................... 1
1 Postal Processing Overview
Shaped-Based Initiative
The shape of the mailpiece plays a major role in the processing method used by the Postal
Service, which is reflected in the realignment of classes of mail and update of pricing structure
that went into effect on May 14, 2007. Today’s pricing structure recognizes that each mail class
has different processing costs and variable delivery options, making it easier for mailers to
determine which class or sub-class of mail would benefit them and/or their customer base the
most for the moneys spent.
Another change relative to shape-based pricing was a reduction in the additional ounce rate for
Presorted First-Class Mail. As shape remains important in determining the price, less emphasis
is placed on weight. If the contents intended for a large envelope can be folded and placed into
a letter-size envelope, the mailer can reduce postage costs. On the other hand, a mailer may
determine that using a large envelope will enhance the perceived value of the enclosed message
to the addressee and choose to pay the higher price. Likewise, some items traditionally
prepared and mailed as a package may be reconfigured and placed in a large (expansion)
envelope, saving the mailer on the first ounce. When mailers choose to mail more efficient
shapes, the Postal Service costs are lower and the savings can be passed on to the mailers
through lower prices, as illustrated below:
$$$$ Parcel vs.
$$$ Flat (max wt 13 oz)
$$$ Flat
vs.
$$ Letter (max wt 3.5 oz)
$$ Letter
vs.
$ Post Card (max size 3.5x5”)
Letter-size mailpieces that weigh 3.5 ounces or less that do not meet aspect ratio standards, or
have any other nonmachinable characteristics, are subject to the nonmachinable surcharge for
First-Class Mail or nonmachinable letter-size pricing for Standard Mail.
Letters that weigh more than 3.5 ounces or exceed any of the maximum letter dimensions,
regardless of weight, are subject to flat-rate pricing. Similarly, mailpieces that exceed any of the
dimensions for a flat are subject parcel-rate pricing.
The maximum weight limit for First-Class Mail flat is 13 ounces, except for First-Class Mail
commercial plus parcels. First-Class Mail weighing more than 13 ounces that is not entered at
commercial plus prices is automatically re-classed as Priority Mail.
The maximum weight limit for Standard Mail® flats and parcels is 15.999 ounces.
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The mailer has a choice (subject to content restrictions for some classes of mail), as to the value
of the shape of the mailpiece, versus the cost of preparing and mailing it. Machinable letters are
automation-compatible letters not barcoded by the mailer but easily processed and bar-coded
on postal processing equipment.
To ensure efficient processing of commercial flat-size mail, all flats must be rectangular in shape,
which includes four square corners or with finished corners that do not exceed a radius of 1/8
inch, uniform in thickness, flexible and meet deflection criteria. Mailpieces that do not meet
these criteria are subject to the parcel-rate pricing. (Note: the physical standards for
automation flats are based on the Automated Flat Sorting Machine-AFSM 100.)
Postal Operations
First-Class Mail from collection boxes and carrier pickup is processed through the Advanced
Facer Canceller System (AFCS). This is a process where mail is separated by sizes, sorted and
oriented to face the same direction so it can be processed on postal automation equipment. It is
then processed through different channels based on mail classification and size.
A Facing Identification Mark (FIM) used on reply mail helps separate the mail by type.
Certified Mail is located and culled from the primary mail stream by the special taggent (color)
on the Certified Mail label. The article number is then scanned and recorded by postal personnel
Stamped or metered mail has phosphorus and fluorescence in the stamp and ink of the meter
impression that help to face the mail on the equipment.
 Stamped mail needs to be completely cancelled, so the stamp cannot be reused and the
date of entry into the mail stream shows on the mailpiece.
 Metered Mail is sometimes sprayed to indicate the date of entry into the mail stream
although it is not required since the mailer is supposed to print the actual date the mail is
entered into the mail stream. This varies from Post Office to Post Office.
MLOCRs (Multi Line Optical Carrier Reader) read the address on the mail piece and spray an
Intelligent Mail Barcode (IMb) in the barcode clear zone. If it can't read it, it sprays an orange
barcode on the reverse and sends the information off to a remote encoding station where
human operators read the mail and key in the correct destination information. This is then tied
to that orange barcode so the next piece of equipment to read it will spray the correct IMb in
the barcode clear zone. If the barcode clear zone is not available to have the IMb sprayed then it
goes to a machine that applies a white opaque label and then sprays the IMb on the label. From
there the mail is put through a number of passes on a barcode sorter, arranging the mail in
increasingly finer sortation levels with each pass until the mail is in carrier route delivery
sequence. In between these passes, it is transported to various processing centers and
commingled with other mail on similar journeys.
Automation-rate First-Class Mail and Standard Mail skips most of the steps since it is entered
thru the Business Mail Entry Unit (BMEU). The mail is already separated by size and processing
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category and does not need to be cancelled. It is 100% DPBC and is put directly on the barcode
sorters. Nonautomation mail may require extra steps in order to process and that is why it costs
more to send.
Letters and flats are processed on different types of machines. It costs the Postal Service less to
process letter mail because the equipment is significantly faster and takes up much less floor
space. The barcodes allow postal equipment to track and process each mailpiece to Carrier
Route Walk Sequence thus saving time and allowing the carrier to spend his entire day
delivering mail instead of manually “casing” it.
Flat Processing machines were updated to eliminate the need for manual keying of the
destination ZIP Code, and the roll-out of the Flat Sequence Sorter (FSS) will further automate
this process by sorting flats into carrier sequence. Small parcels have also been automated with
saving incentives for the mailers who presort and barcode them.
There are several primary factors that determine the rates that apply to a specific mailing:
 Classification of the mail
 Physical size, shape and weight of the mailpieces
 Contents of the mailpieces
 The postal equipment the mailpiece is processed on
 Distance
Each of these factors is interdependent of the other and plays a role in determining the rates
that will be applied to the mailing or individual mailpiece.
Classes of Mail
On May 14, 2007, the Postal Service implemented a new pricing system, which reshaped the
future of mail. Now that mailing costs are primarily based on the shape of mail, not just weight,
has instilled a better understanding to the fact that the shape of a mailpiece plays a major role
in postage pricing. That said the current price structure recognizes that each of these mail
shapes require different resources to be processed resulting in substantially different processing
costs. This realignment has provided greater opportunities by creating a more flexible rate
system for mailers to obtain lower rates. Mailers who continue to find ways to reconfigure their
mail into shapes that reduce handing costs for the Postal Service help keep rates affordable for
everyone.
The Postal Service divides mail into different classes and sub-classes, which are defined by
different standards, service levels, features, pricing and requirements. Determination of which
class of mail you have to choose from is dependent on the contents, size, weight, speed of
delivery and price you are willing to pay. With a maximum weight of 70 pounds for any single
article, almost anything can be mailed, however, as previously stated what you gain in the speed
of delivery, will have a direct effect on your cost per piece.
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Priority Mail Express Service
Priority Mail Express is the Postal Service’s premium service that provides reliable expedited
mail delivery and offers online tracking at www.usps.com, up to $100 insurance against loss,
damage, or rifling is included at no extra cost (additional merchandise insurance may be
available up to $5000, depending on the value and nature of the item), is delivered 365 days a
year to most destinations and is the only overnight service that will deliver to a postal mailbox
and/or PO Box. Note: A premium fee may be charged for Sunday or holiday delivery. Mailers
may call 1-800-222-1811 or visit www.usps.com for delivery information between specific ZIP
Codes. Hold for pickup is a Post Office-to-Post Office option. The sender must notify addressee
for pickup.
Domestic Priority Mail Express services are backed with a money back guarantee and include:
Next Day Service – This service provides delivery or notification to the addressee or attempted
delivery on the following day by a specific time.
Second Day Service – Locations not eligible for next day service or mailpieces received after the
designated drop-off time may use the Second Day Service option. This service provides delivery
or notification to the addressee of attempted delivery by noon or 3pm on the second delivery
day.
Priority Mail Express Military Service is available between the United States and designated
APOs and FPOs. Shipments are delivered in 2 to 3 days to more than 300 locations in Europe,
Asia, and Panama.
Priority Mail Express International Service is available between the United States and more than
190 foreign countries.
Damage and/or money back refund claims must be made within 30 days from the date of the
mailing. Refunds do not apply if:
 An incorrect ZIP Code or address was written in the delivery address block.
 Delivery was attempted but not accomplished within the specific time.
 Forwarding or return service was provided after article was made available for claim.
 A delay caused by non-USPS strikes or work stoppages.
 The piece was detained for the purpose of law enforcement.
For mailers' convenience, Priority Mail Express envelopes and boxes are available at no cost
from local Post Offices and at www.usps.com. Customized preprinted labels are also available by
contacting your local Post Office. Matter mailed in USPS-provided Priority Mail Express
packaging is subject to Priority Mail Express rates regardless of how the packaging is
reconfigured or how markings may be obliterated.
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Rates and Fees – Except when using a Priority Mail Express Flat Rate envelope or box, Priority
Mail Express prices are based on weight and zone. Items are charged the half-pound price for
weights up to one-half pound. Items over a half pound are rounded up to the next whole pound.
Pickup on demand service is available for a flat fee regardless of the number of pieces. Service
and information is available by calling 1-800-222-1811 or at www.usps.com. There is only one
fee for all Priority Mail Express, Priority Mail, or Standard Post pick up at same time.
Postage Payment and Documentation – Retail Priority Mail Express may be paid by adhesive
stamps or with postage meters. Commercial based mailers have multiple options to pay
postage which include:
 Priority Mail Express USPS Corporate Account
 Click-N-Ship
 Registered and approved PC Postage products
 Approved IBI meters
 Meter imprint markings must be appropriate and the data is electronically transmitted to
the USPS with an approved Priority Mail Express shipping label.
 Permit imprint through Electronic Verification Systems (EVS).
Content Standards – First-Class Mail (including Priority Mail® or Priority Mail Express) is required
for personal correspondence, handwritten or typewritten material, and bills or statements of
account. It may also be used for any mailable item.
Deposit – Priority Mail Express Next Day and Second Day items may be mailed at any Post Office
location, including stations and branches; dropped into Priority Mail Express collection boxes;
handed to carriers; or picked up by the USPS. Acceptance and collection information may be
obtained by calling 1-800-222-1811 or contacting your local postmaster.
Priority Mail Express that weighs more than 13 ounces bearing only postage stamps may not be
deposited into a collection box or other unattended location, but must be presented at a Post
Office retail counter.
Extra Services – Return receipt service and Collect on Delivery (COD) are available.
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Waiver of Signature – Mailers may instruct the USPS to deliver Priority Mail Express packages
without obtaining the addressee's signature by signing the waiver on the Priority Mail Express
label. A waiver signature cannot be used for Priority Mail Express Custom Designed Service,
Priority Mail Express COD, or Priority Mail Express with additional insurance.
The USPS Priority Mail is an expedited service that includes expedited handling and
transportation with the USPS. However, it does not include a guarantee delivery within a
specified time. Priority delivery service standards are reported as 1-day, 2-day or 3-day service,
which is based on where the piece is coming from and where it is going to (i.e. the origin ZIP and
the destination ZIP). This expected delivery time is printed directly on shipping labels when they
are used to pay for the service. Priority Mail Express is a subclass of Priority Mail.
The USPS is now including insurance coverage when you ship with Priority Mail. The first $50 of
coverage is provided free of charge, and comes automatically when you ship with Priority Mail.
For shippers that qualify for Commercial Plus Pricing, $100 coverage is included.
Rates and Fees – Except for Priority Mail Flat Rate envelopes and boxes, postage is determined
by weight, zone and sometimes even size. Balloon pricing may apply to packages destined to
zones 1 - 4 that weigh less than 20 lbs and measure greater than 84 inches in combined length
and girth. Parcels addressed for delivery to zones 5-8 that exceed 1 cubic foot (1,728 cubic
inches) are charged postage based on the actual weight or the "dimensional weight" whichever
is greater.
Commercial Base Priority Mail Prices are available for:
 Click-n-Ship customers.
 Registered end-users of USPS-approved PC Postage products when using a qualifying
shipping label managed by the PC Postage system used.
 Customers using permit imprint
 Priority Mail Open and Distribute customers using permit imprint.
 Customers using USPS-approved IBI postage meters that print the IBI with the appropriate
price marking ("Commercial Base Price," "Commercial Base Pricing," or "ComBasPrice") and
electronically transmit transactional data to the USPS.
 Permit holders using Merchandise Return Service (MRS) for Priority Mail mailpieces when all
MRS requirements are met.
The Postal Service offers an optional "no fee" electronic Delivery Confirmation™ service,
available through Click-N-Ship, PC Postage products, some vendor-provided mailing systems and
for manifest mailing systems (MMS) mailers.
Think shape and size for the best value; here’s an easy way to look at it: For the lowest postage
rate possible, use the smallest envelope or box possible.
For Envelopes: As an example, a letter mailed in a 6" x 9" envelope costs less than a 9” x 12”
envelope and is considered the “preferred” envelope when converting from a large envelope to
smaller one.
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For Boxes: Don’t ship small, lightweight items in large boxes– practice “right-size shipping.” This
helps you avoid possible surcharges for oversized packaging. Or you can simply use Postal
Service packaging that comes in a range of sizes to meet your shipping needs.
Dimensional-weight pricing does not apply to Priority Mail Open and Distribute (formerly
Priority Mail Drop Shipment) mailings of other classes of mail when enclosed in USPS-supplied
containers.
Priority Mail containers, including the Priority Mail Flat Rate Boxes, available at Post Offices and
USPS.com are not based on weight and zone but are charged a flat rate regardless of actual
weight (up to 70 pounds) of the mailpiece and domestic destination.
First-Class Mail that weighs over 13 ounces is Priority Mail. It can weigh up to 70 pounds and
have a combined length and girth that does not exceed 108 inches (exception Balloon Pricing).
There is no minimum weight for Priority Mail if the mailpeice is marked “Priority Mail.”
For retail mail Priority Mail postage may be applied using adhesive stamps or postage meter
imprint. Available for purchase using a credit card through www.usps.com is Priority Mail
Forever Prepaid Flat Rate packaging. If the mailer wants to purchase additional services they
must be purchased at a retail Post Office location using postage stamps, Postage Validation
Imprint (PVI) or postage meters. As with Priority Mail Express there are Commercial base prices
available when postage is paid using Click-N-Ship or PC Postage options.
Priority Mail can be deposited at USPS collection boxes, handed to carriers or presented at Post
Offices. Remember that packages with adhesive stamps that weigh more than 13 ounces must
be presented at a Post Office retail counter and packages with meters or PC Postage can be
deposited in collection boxes or at acceptance points assigned by the USPS.
Open & Distribute Service
The USPS Open and Distribute Service is a premium service that enables mailers to ship to
destination mailing facilities or delivery units at the speed of Priority Mail Express or Priority
Mail services.
Standards – The Priority Mail Express or Priority Mail shipment and the enclosed mail must
meet all corresponding eligibility and preparation standards. The mail enclosed in a Priority Mail
Express or Priority Mail pouch must consist either entirely of single-piece rate matter or entirely
of presorted matter that is part of the same mailing, unless an exception is granted by the
Pricing and Classification Service Center (PCSC).
Authorization – Except under DMM 705.17.1.7, Zoned Rate Matter, no authorization is required
for Priority Mail Express or Priority Mail Open & Distribute Service, but the mailer must obtain
necessary permits, licenses, or authorizations for the enclosed mail or postage payment method
used and must pay any annual mailing fee applicable to the enclosed mail at the Post Office
where the Priority Mail Express or Priority Mail Open & Distribute Service is mailed.
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Basis of Rate – Priority Mail Express or Priority Mail postage must be paid on the weight of the
entire contents of the Priority Mail Express pouch or Priority Mail sack. The tare weight of the
pouch or sack is not included in this weight.
Zone Rates – Zone rates for Priority Mail are computed from the accepting Post Office to the
destination Post Office for the Open & Distribute Service (not the destination Post Office for the
enclosed mail).
Calculating Payment for Enclosed Mail – Postage and fees for the mail enclosed must be
prepaid under the applicable standards. When the enclosed mail is zone-rated, the zone is
computed from the postal facility where the Priority Mail Express or Priority Mail Open &
Distribute Service is destined. Discounts otherwise available to the enclosed mail may be
claimed if the applicable standards (e.g., volume and preparation) are met.
Payment Method – Postage on the enclosed mail may be paid with any method permitted for
that mail class. Priority Mail Express postage may be paid with adhesive stamps or meter
stamps. Priority Mail postage may be paid with adhesive stamps or meter stamps affixed to Tag
159. Priority Mail may also be paid with a permit imprint through a manifest mailing system,
optional procedure mailing system, or alternate mailing system. If a permit imprint is used for
Priority Mail postage, the permit imprint must be affixed to or hand-stamped on the tag. There
are commercial based prices available to mailers when the postage is paid using a Click-N-Ship
service or by registered end-users of PC Postage produces when using a qualified label managed
PC Postage system.
Open & Distribute Service – Priority Mail Express
Priority Mail Express Open & Distribute Service (Priority Mail Express Custom Designed Service,
Priority Mail Express Next Day Service, or Priority Mail Express Second Day Service) expedites
movement of any other class of mail between domestic postal facilities. The open & distribute
service receives the Priority Mail Express service selected from the origin Post Office to the
destination Post Office of the shipment, where the enclosed mail is processed and provided the
appropriate service from that Post Office to its destination.
Service Objectives – The service guarantee for a Priority Mail Express shipment using Open &
Distribute Service procedures ends on receipt at the postal facility where the shipment is
destined and does not apply to the delivery of the enclosed mail to the address.
Preparation – A Priority Mail Express Open & Distribute Service must be contained in a blue and
orange Priority Mail Express pouch, except that Customized Market Mail (CMM) pieces under
DMM 705.1.0 may be contained in USPS-provided Priority Mail Express envelopes and cartons
or in any properly labeled container supplied by the mailer. The mailer must present matter
prepared using the proper mailing label that must be placed in an EP-13 envelope and attached
to each Priority Mail Express pouch.
 Blue Tag257 is used for Priority Mail Express Open and Distribute sacks or trays going to
DDUs and contains an address label with a service barcode.
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


Blue Label 257S is used on Priority Mail Express Open and Distribute flat rate envelopes
going to DDUs and an address label with a service barcode is affixed to the flat rate
envelope.
Yellow Tag 267 is used on Priority Mail Express Open and Distribute sacks or tray boxes
going to all mail processing facilities and contains an address label with a service barcode.
Open and Distributed shipments to a DDU may contain a USPS-provided Priority Mail
Express Flat Rate Envelope using Label 257S under DMM 705.17.5.1.c.
In addition to the tags listed above, USPS-supplied cartons and envelopes and mailer-supplied
containers must be addressed "POSTMASTER—OPEN AND DISTRIBUTE"; followed by street
address (mailing address) of the facility on the next line; and city, state, and ZIP Code on the last
line.
Deposit Site – A Priority Mail Express Open & Distribute Service must be deposited at a postal
facility designated by the postmaster to accept both the class of mail enclosed and Priority Mail
Express. The shipment must be prepared and presented to the business mail entry unit (BMEU)
of the origin Post Office.
Acceptance Time – A Priority Mail Express Open & Distribute Service must be presented to the
BMEU with enough time for acceptance, processing, and dispatch to the Priority Mail Express
unit before the cutoff time for Priority Mail Express.
Extra Services – No extra services can be added to the Priority Mail Express portion of the Open
& Distribute Service.
Payment Method – Priority Mail Express postage may be paid with adhesive stamps or meter
stamps. Priority Mail postage may be paid with adhesive stamps or meter stamps affixed to Tag
159. Priority Mail may also be paid with a permit imprint through a manifest mailing system,
optional procedure mailing system, or alternate mailing system. If a permit imprint is used for
Priority Mail® postage, the permit imprint must be affixed to or hand-stamped on the tag.
Open & Distribute Service – Priority Mail
Priority Mail Open & Distribute Service expedites movement of any other class or subclass of
mail (except Priority Mail Express) between domestic postal facilities.
The Open & Distribute Service receives Priority Mail service from the origin Post Office to the
destination Post Office of the shipment, where the enclosed mail is processed and provided the
appropriate service from that Post Office to its destination. This service reduces transportation
time and expedites delivery of enclosed mail.
Preparation – A Priority Mail Open & Distribute Service must be contained in either an orange
Priority Mail sack or a letter-size tray, except that Customized Market Mail pieces under DMM
705.1.0 may be contained in USPS-provided Priority Mail® envelopes and cartons or in any
properly labeled container supplied by the mailer.
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Open and Distribute shipments to a DDU may contain a USPS-provided Priority Mail Express Flat
Rate Envelope using Label 257S or Priority Mail Flat Rate Envelope and boxes using Label 190S
under DMM 705.17.5.1.c.
Deposit Site – A Priority Mail Open & Distribute Service must be prepared according to Postal
Service guidelines and presented to the business mail entry unit (BMEU) authorized by the
postmaster to accept the class of mail enclosed.
Acceptance Time – A Priority Mail Open & Distribute Service must be presented to the BMEU
with enough time for acceptance, processing, and dispatch before the critical dispatch time for
Priority Mail.
Zone Rates – Zone rates for Priority Mail are computed from the accepting Post Office to the
destination Post Office for the Open & Distribute Service.
Extra Services – No extra services can be added to the Priority Mail Open & Distribute Service.
Mail enclosed may receive only the following services:
 First-Class Mail pieces may be sent with Certified Mail service or special handing or, for FirstClass Mail parcels only, electronic option Delivery Confirmation service or electronic option
Signature Confirmation service.
 Standard Mail pieces subject to the residual shape surcharge (except Customized Market
Mail pieces) may be sent with electronic option Delivery Confirmation™ service.
 Parcel Select and Package Services mail may be sent with special handling or, for Package
Services parcels only, electronic option Delivery Confirmation service or electronic option
Signature Confirmation service.
Enclosed Mail – Classes of mail that may be included in a Priority Mail Open & Distribute Service
are retail First-Class Mail, presorted First-Class Mail, Periodicals, and Standard Mail. Mail
requiring cancellation may not be drop shipped. Acceptable containers for expedited transport
are as follows:
 A Priority Mail Open & Distribute Service must be contained in either an orange Priority Mail
sack or a letter-size tray, except that Customized Market Mail pieces under DMM 705.1.0
may be contained in USPS-provided Priority Mail envelopes and cartons or in any properly
labeled container supplied by the mailer.
 Open and Distributed shipments to a DDU may contain a USPS-provided Priority Mail Flat
Rate Envelope and boxes using Label 190S under DMM 705.17.5.1.c.
In addition to the Priority Mail sack label, the appropriate tags and label must be attached to
each Priority Mail sack to identify it as a Priority Mail Open & Distribute Service. The tag
indicates the class of mail enclosed in the Priority Mail sack and provides a place to affix Priority
Mail postage. This tag or an approved facsimile also must be affixed to containers used for
Priority Mail Open & Distribute Service of CMM.
 Pink Tag 190 is used on Priority Mail Open and Distribute sacks or tray boxes going to DDUs
and contains an address label with a service barcode.
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

Pink Label 190S is used on Priority Mail Open and Distribute flat rate envelopes and boxes
going to DDUs and an address label with a service barcode is affixed to the flat rate
envelope or box.
Green Tag 161 is used on Priority Mail Open and Distribute sacks or tray boxes going to all
Destination Mail Processing Facilities and contains an address label with a service barcode.
Mailers can order tags, labels and boxes by ordering them through the USPS Expedited Package
Supply Center at (800) 610-8734. In addition to the tags previously listed, USPS-supplied cartons
and envelopes and mailer-supplied containers used for Priority Mail Open & Distribute Service
must be addressed "POSTMASTER—OPEN AND DISTRIBUTE"; followed by street address
(mailing address) of the facility on the next line; and city, state, and ZIP Code™ on the last line.
Payment Method – Priority Mail postage may be paid with adhesive stamps or meter stamps,
permit imprint through a manifest mailing system, optional procedure mailing system, or
alternate mailing system. If a permit imprint is used for Priority Mail postage, the permit imprint
must be affixed to or hand-stamped on the tag.
First-Class Mail Service
First-Class Mail prices are the same no matter what the domestic destination and the price also
includes forwarding and return services. Postage on First-Class Mail is calculated by the ounce.
The maximum weight of a First-Class letter is 3.5 ounces and the maximum weight of a FirstClass large envelope/flat or package/parcel is 13 ounces. First-Class mailpieces over 13 ounces
become Priority Mail.
Items required to be sent as First-Class Mail or Priority Mail include:
 Handwritten or typewritten material
 Bills, statements of account or invoices, and credit cards
 Personal and personalized business correspondence
 All matter sealed or otherwise closed against inspection
First-Class Mail pricing includes:
 Postcards
 Letters
 Large Envelopes/Flats weighing 13 ounces or less
 Packages/Parcels weighing 13 ounces or less
First-Class Mail letter-size pieces must meet certain physical requirements or be subject to
surcharges or shape based pricing. A letter-size mailpiece that is square, rigid or meets at least
one nonmachinable characteristic will be subject to a surcharge and flat sized mailpieces that
are rigid, non rectangular or have uneven thickness will be charged parcel rates. Many smaller
and beginning mailers use First-Class Mail for letters and post cards because mailings at single
piece rates do not require a special payment method, mailing permit, and the extra time to
presort the mail and prepare it for acceptance at a Business Mail Entry Unit (BMEU) of the USPS.
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It is simple and quick to place a stamp on the mailpiece and drop it in any collection box. Mailers
also have the option to add extra services such as Registered Mail and Certified Mail for a fee.
For larger mailings (500 pieces or more), the USPS offers reduced postage and work share
discounts for preparing the mailing for the USPS before bringing it to the BMEU.
There are various levels of discounts based on the amount of presorting and automation
compatibility of the mailing. Refer to DMM section 201 to understand the physical standards
and differences between machinable letters and cards, nonmachinable letters and machinable
and automation letters and cards. DMM section 230 outlines First-Class Mail price and eligibility,
postage payment and documentation, mail preparation and the enter and deposit requirements
while DMM section 600 outlines the basic standards that are required for all mailing services.
PS Notice 3-A and 3-S – USPS Notice 3-S is an easy to use Shape-Based Pricing Template. The
mailer can quickly identify if the mail piece does not meet minimum and maximum postcard,
letter or large envelope (flat) sizes, exceeds thickness or does not meet aspect ratio
requirements. Important Reminder: Only Use Current Versions of Notice 3-A and 3-S
Notice 3-A, Letter-Size Mail Dimensional Standards Template, and Notice 3-S, First-Class Mail
Shape-Based Pricing Template, are valuable tools for Retail Associates and customers alike to
quickly and easily determine whether or not a mailpiece meets USPS physical mailing standards.
Please ensure that you are using the most recent version of each Notice: the November 2011
version of Notice 3-A and the June 2010 version of Notice 3-S. Do not use earlier versions of
these Notices.
Postal Service employees can order Notice 3-A, Letter-Size Mail Dimensional Standards
Template, stock number 7610-03-000-9053, and Notice 3-S, First-Class Mail Shape-Based Pricing
Template, stock number 7530-10- 000-0765, from the Material Distribution Center (MDC)
through eBUY2 or by using touch tone order entry (TTOE) at 800-273-1509.
Note: You must be registered to use TTOE. To register, call 800-332-0317, Option 1, extension
2925, and follow the prompts to leave a message. Wait 48 hours after registration before
placing your first order.
Postal Service customers can order Notice 3-A, Letter- Size Mail Dimensional Standards
Template, and Notice 3-S, First-Class Mail Shape-Based Pricing Template, from the Material
Distribution Center (MDC) in Topeka, KS, by calling Customer Service at 800-332-0317, Option 4,
to get details on availability and price. Customers will then mail the MDC a check or money
order along with the ticket number given to them by Customer Service.
The cost to customers for 10 each of Notice 3-A and Notice 3-S, handling, and Standard Post
postage is about $23; with Priority Mail, the cost is about $28. If a customer orders only one of
each, the cost is approximately $10 or $15, depending on whether it is shipped by Standard Post
or Priority Mail.
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Periodicals
The Periodicals class of mail is designed for newspapers, magazines and other periodical
publications whose primary purpose if transmitting information to an established list of
subscribers or requesters.
To become a periodicals mailer, one must apply and become authorized to mail using these
rates. For publications to quality, they must be published at regular intervals, at least four (4)
times per year from a known office of publication and consist of printed sheets.
There are specific standards for circulation, record keeping, and advertising limits. There are also
special rates for Nonprofit, Classroom and Science-of-Agriculture types of periodicals.
Periodicals have no minimum weight and can weigh no more than 70 pounds. Rates are based
on pounds, pieces, advertising content, shape and containers. Periodicals mail is subject to
postal inspection.
Meters, stamps and permit imprints are not used to evidence postage for Periodicals. Rather,
Periodicals must contain an ID statement. Refer to DMM section 707 for Periodical
requirements.
Standard Mail Service
Standard Mail (formerly known as Standard Mail (A) and third-class mail) is mail matter that is
not required to be mailed as First-Class Mail® or Periodicals and must weigh less than 16 ounces.
A Standard Mail mailing must have at least 200 pieces or 50 pounds within the same processing
category, i.e., all letters, all flats or all parcels.
Standard Mail is only for domestic mail and there are no single-piece prices. The USPS Service
objective for Standard Mail is 2 – 9 days. The delivery time is not guaranteed and Standard Mail
is not sealed against postal inspection. Personal information may not be included in a Standard
Mail mailpeices unless all of the following conditions are met:
 The mail piece contains explicit advertising for a product or service for sale or lease or an
explicit solicitation for a donation.
 All of the personal information is directly related to the advertising or solicitation.
 The exclusive reason for inclusion of all of the personal information is to support the
advertising or solicitation in the mail piece.
Mailers use Standard Mail to send out:
 Printed matter, flyers, circulars, advertising
 Newsletters, bulletins and catalogs
 Small parcels
Rates and Fees – Standard Mail has pricing for letters, flats and parcels. Postcards are mailed as
letters or flats if sent Standard Mail. Postage for Standard Mail pieces weighing 3.3 ounces or
less is determined by the piece charge. Standard Mail weighing over 3.3 ounces is subject to per
pound and per piece charges. Mailers are responsible for proper postage payment and can pay
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postage for Standard Mail with a meter, permit imprint or pre-cancelled stamps. Remember a
permit imprint can be used for mailings contain non-identical-weight pieces but the mailer must
have authorization to do so from the USPS. When postage is not affixed, documentation
meeting requirements must be presented for acceptance. Refer to the USPS DMM 244, 344 and
444 for detailed Postage Payment and Documentation requirements.
There are extra services that can be used with Standard Mail parcels such as electronic Delivery
Confirmation, bulk insurance and Return Receipt for merchandise. Standard Mail® can only be
forwarded or returned if the mailpiece includes and ancillary service endorsement which may
result in additional fees or postage.
Undeliverable Standard Mail – Undeliverable-as-addressed (UAA) mail is forwarded, returned
to sender, or treated as dead mail as authorized for the particular mail class. A mailer
endorsement is used to instruct the Postal Service regarding the mailpiece's appropriate
disposition upon determining that it is UAA. Standard Mail with proper endorsements will allow
the mailpiece to be delivered and reduce the UAA volumes. If the mailer does not receive
returned mail with the endorsement “Returned to Sender” this indicates that the mailpiece was
delivered, it maybe was delivered, it was destroyed, or it was lost in the postal system.
Standard Mail Nonprofit – Nonprofit mailers who qualify can mail at reduced rates. A qualified
organization is not organized for profit, and none of its net income inures to the benefit of any
private stockholder or individual. Only political committees, voting registration officials, and
organizations that meet specific standards for qualified nonprofit organizations and that have
received specific authorization from the USPS may mail eligible matter at the Nonprofit
Standard Mail rates.
Except for mailings deposited under the plant-verified Open & Distribute Service program, a
separate authorization is required at each Post Office where nonprofit rate mailings are
deposited. Pieces mailed at the Nonprofit Standard Mail rates must meet the general standards
for Standard Mail for letters, for flats, for parcels and the standards specific to any other
discount or rate claimed. Nonprofit mailings are the only class of mail that continues to receive
congressional appropriations to subsidize postage.
Types of organizations that may qualify:
 Religious
 Educational
 Scientific
 Philanthropic
 Agricultural
 Labor
 Veterans
 Fraternal
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Ineligible Nonprofit Organizations:
 Service
 Social
 Hobby clubs
 Citizens' and civic improvement associations
 State, county, and municipal governments
Eligible and Ineligible Matter – Nonprofit rates are not permitted for mailing promotional
material for credit cards, insurance policies, and travel arrangements. Authorized organizations
may not let any other person or organization use their authorizations to mail at Nonprofit
Standard Mail rates.
Cooperative Mailings – Cooperative mailings may be mailable at Nonprofit Standard Mail rates
only if each cooperating organization is individually authorized to mail at Nonprofit Standard
Mail rates where the mailing is deposited.
Deposit – Standard Mail is presented to the USPS where the permit or license is held and all
mailing fees have been paid except when presented as:
 Plant-verified drop shipment (PVDS)
 Plant-load mailings must be deposited as specified in the plant load agreement
 Metered mailings may be deposited at other USPS sites as permitted under DMM 705
Nonprofit Standard Mail must be presented only at a post office where the organization
producing the mailing has an approved nonprofit authorization. The USPS allows Standard Mail
that meets requirements to be deposited at the correct destination postal facility. The mailer
must prepare and present the appropriate documentation such as form 8125 or provide an
Authorization for Network Distribution Center (NDC) acceptance where required. Mailers must
transport the mail presented at destination facilities. Refer to DMM 246, 346 and 446 for
detailed entry requirements.
Package Services
Package Services is a class of mail primarily intended for merchandise, catalogs and other
printed material. It is not an expedited service. There are four subclasses of mail in Package
Services:
 Standard Post (formerly Parcel Post)
 Media Mail
 Library Mail
 Bound Printed Matter
Each subclass is suited for a type of mail and offers different levels of service and requirements
as far as advertising and content. There is no minimum weight to be mailed using a package
service and the maximum weight is 70 pounds for Standard Post, Media Mail and Library Mail
service.
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Standard Post is Package Services matter not mailed as Bound Printed Matter, Media Mail, or
Library Mail. Standard Post is for single-piece mailings which consist of any mailable matter that
is not required to be mailed as First-Class Mail. It is commonly used for gifts and merchandise.
There are no bulk prices for Standard Post.
Media Mail is generally used for books (at least 8 pages), film, printed music, printed test
materials, sound recordings, play scripts, printed educational charts, loose leaf pages and
binders consisting of media information and computer readable media. There are advertising
restrictions when using Media Mail. Postage rates are based on pounds. There are potential
discounts presorted mailings of 300 or more pieces. There is also a barcode discount for
machinable parcel-size mailings consisting of at least 50 pieces.
Library Mail can be used by qualifying institutions such as libraries, universities, zoos, research
institutions and nonprofit organizations to mail educational and research materials. Postage
rates are based on pounds. There are potential discounts presorted mailings of 300 or more
pieces. There is also a barcode discount for machinable parcel-size mailings consisting of at
least 50 pieces. The USPS does not guarantee delivery of Library mail within a specified
timeframe and it is not sealed against postal inspection. A delivery and return address is
required for all Library Mail. Reference DMM sections 180, 380 and 480 for detailed Library Mail
requirements. Examples of items that can be mailed at Library Mail prices when sent between
entities identified in DMM 183.3.3 are as follows.
 Books, which consist wholly of reading matter, scholarly bibliography, or reading matter
with incidental black spaces for notations and containing no advertising except for incidental
announcements of books
 Printed music, bound or sheet form
 Bound volumes of academic theses, whether typewritten or duplicated form.
 Periodicals, whether bound or unbound
 Sound recordings
 Other library materials in printed, duplicated, or photographic form or in the form of
unpublished manuscripts
 Museum materials, specimens, collections, teaching aids, printed matter and interpretive
materials for informing and furthering the educational work and interests of museums and
herbariums
Bound Printed Matter has a maximum weight of 15 pounds per mailpiece. Insurance, Delivery
Confirmation and other extra services can be added to Package Services mail for a fee. All
subclasses of Packages Services mail are subject, or “open” to postal inspection. Package
Services does not include free forwarding and return for undeliverable mail but these services
can be added by using ancillary service endorsements. Bound Printed Matter sent without an
endorsement that is refused or undeliverable will be disposed of at the local post office. The
other Package Services will be returned to sender postage-due. Before mailing merchandise,
compare the costs and service between Priority Mail and Packages Services. In some cases, the
postage cost is nearly the same but Priority Mail is faster and includes free forward and return
services for undeliverable mail.
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Bound Printed Matter must:
 Be paid by permit imprint.
 Consist entirely or a combination of advertising, promotional, directory or educational
material.
 Be bound securely by permanent fastenings such as staples, spiral binding, glue or stitching.
Loose leaf binders are not considered permanent.
 Consist of sheets of which at least 90% are imprinted by any process other than handwriting
or typewriting with words, letters, characters, figures or images or a combination.
 Not have nature of personal correspondence.
 Not be stationery, such as pads of blank printed forms.
There are commercial prices, carrier route prices, and destination entry discounts available for
bulk quantities of Bound Printed Matter. The Minimum quantity is 300 pieces. There is also a
barcode discount available for Bound Printed Matter pieces.
USPS Incentive Programs
The USPS introduced a Standard Mail Saturation / High Density Incentive Program in 2011. Since
then a variety of programs and incentives designed to enhance the value of mail and increase
the use of physical mail have been introduced. The USPS typically announces the next year’s
scheduled programs before the end of the current year, to enable mailers to understand and
facilitate budgeting and planning to take advantage of the promotions and incentives. For 2014,
8 promotions and 1 incentive were proposed as part of the 2014 Rate Change. As always, the
promotions proposed by the USPS in such filings is subject to review and approval by the Postal
Regulatory Commission (PRC). The USPS anticipates that it will continue to announce proposed
promotions and incentives in this manner going forward.
The programs for 2014 are described as follows, the latest information can be found on RIBBS
at: https://ribbs.usps.gov/index.cfm?page=mobilebarcode
2014 Proposed USPS Promotional Calendar:
HD and WSS Incentive
 Runs all year long (CY 2014)
 Rebate on volumes above CY2013 volume + 2%
 20% rebate on WSS
 15% rebate on HD
 5% rebate for nonprofits
Branded Color Mobile Technology Promotion
 Runs February – March 2014
 Similar to past mobile promotions
 Use QR or other mobile print technology on inside or outside of mail piece
 Use Color, Trademarks, etc.
 2% discount on qualifying postage
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EDDM Coupon Promotion
 Runs March – December 2014
 Designed for USPS Sales Team
 Promote use of EDDM by new small business customers
 $50 or $100 credit on postage for EDDM mailings
 Must be redeemed by January 2015
Premium Advertising Promotion
 Runs April – June 2014
 Promote use of First-Class Mail for marketing & advertising
 15% discount on postage
 Must have mailed $6million+ in Standard Letters postage in FY 2013
Earned Value Reply Mail Promotion
 Runs April – June 2014
 Similar to 2013 Reply Mail promotion
 $0.02 per-piece rebate on qualifying BRM & CRM pieces
 $0.03 rebate if mailer participated in 2013 promotion and increased their volume of
qualifying BRM/CRM pieces in 2014.
Mail & Digital Personalization Promotion
 Runs May – June 2014
 Use personalized URLs to drive integrated marketing
 2% upfront discount on postage
Emerging Technology – Featuring Near Field Communication Promotion
 Runs August – September 2014
 Standard Letter and Flats only (and nonprofit)
 Must use standard NFC or other emerging technology to engage a mobile device in an
interactive experience.
 2% upfront discount on postage
Color Print in FCM Transactions Promotion
 Runs August – December 2014
 Requires color, dynamic/variable printing on contents of the transactional piece
 2% upfront discount on postage
Mail Drives Mobil Commerce Promotion
 Runs November – December 2014
 Builds upon 2013 Mobil “Buy-it-Now” promotion
 Utilize mobile purchasing technology
 2% upfront discount on postage
 1% additional rebate on postage if # of Priority Mail packages > 0.5% of pieces sent
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2 Processing Methods & Categories
Manual and Automated Processing Methods
The Postal Service processes mail through three types of operations:



Machinable (or automation compatible) operations allow non-barcoded mailpieces to be
processed on machines.
Nonmachinable operations require an employee to read the address on each piece of mail
and then sort the mail into "pigeon holes" in a letter case.
Automation mail meets machinable criteria, is IMB barcoded and received barcoded
discounts.
The Postal Service handles mailpieces differently according to their size. The mailpiece size
determines which sorting equipment will be used to process your mail. The type of processing
determines potential discounts. If your presorted mail is not compatible with Postal Service
automation standards, it has to be processed manually. This is time-consuming, costly, and likely
to reduce the work sharing discounts you might otherwise be entitled to on mail entered at a
business mail entry unit (BMEU).
USPS Processing Equipment – The Postal Service uses a variety of automated equipment. The
most efficient and accurate mail processing results from using automated, high-speed,
computerized mail sorting and processing equipment.
Automated Letter Processing Equipment – The Postal Service uses two basic types of
automated equipment to process letter-size mail:
 Multiline Optical Character Reader (MLOCR)
 Bar Code Sorter (BCS)
The MLOCR scans the address block on each letter-size mailpiece to determine the ZIP+4 Code
and the delivery point information, and verify the address information against an internal
database. To locate the address, the MLOCR must be able to scan all the elements clearly. That's
why a complete address and "good" print quality are so important. The MLOCR converts that
information into an Intelligent Mail barcode. The MLOCR then prints the barcode in the lower
right corner (barcode clear zone) of the mailpiece and performs an initial sortation. The barcode
is then used for further sortation. From that point on, the mailpiece is sorted by high-speed Bar
Code Sorter (BCS) that read and interpret the barcode. MLOCRs are capable of reading,
barcoding, and sorting mail at a rate of 40,000 pieces per hour—about 11 pieces per second.
These machines are used not only by the US Postal Service, but also by large companies and
collateral mailing agents like presort bureaus and letter shops. If you accurately barcode your
letter-size mailpieces, they can skip the entire MLOCR process and go straight to a barcode
sorter. Mail in this category can receive the maximum postage discount.
The BCS "reads" Intelligent Mail barcodes on letter-size pieces and sorts the mail accordingly.
This machine doesn't read addresses, so it will miss sort a piece if the customer has applied an
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incorrect barcode. The BCS can read and sort 40,000 pieces per hour as well. With the advent
of Wide Area Bar Code Readers (WABCRs), a BCS can find a barcode almost anywhere on the
face of a letter-size mailpiece, including the address block area and the barcode clear zone. This
allows mailers to apply barcodes so they can qualify for lower rates and take advantage of
faster, more efficient mail processing. But, for other reasons, the barcode must always be
printed within 4 inches of the bottom edge of the piece—either as part of the address block or
within the barcode clear zone in the lower right corner. When buying any ZIP+4 matching
software, make sure that the product bears The Postal Service certification seal. The software
must be Coding Accuracy Support System (CASS) certified.
Postage Discounts – The Postal Service offers a variety of postage discounts for correctly
prepared automation-compatible mailings. You can qualify for automation rates for Intelligent
Mail barcoded mailpieces prepared and submitted according to postal standards. Your local
Post Office can help you or refer you to another source for information. This is an excellent way
to incorporate “work share” incentives and save money!
Mail Evaluation Readability Lookup Instrument (MERLIN) is a tool that is used by the Postal
Service to assist with the acceptance of business mail. All business mailings presented for
acceptance must be verified to confirm their eligibility for reduced postage rates. When entering
bulk mailing at the BMEU, mailers will have their mail run through the verification process.
MERLIN verifications are separated into two categories:
 Initial review: Business mail entry clerks inspect a mailing for fees, funds, and eligibility.
 In-depth review: MERLIN uses a sampling procedure to produce reports for verification. It
automates the previous manual acceptance process for presorted First-Class Mail, Standard
Mail and Periodicals to qualify for work share discounts.
MERLIN processes letters, postcards, and flat-size pieces. MERLIN verifies First-Class Mail,
Standard Mail, and Periodicals mail against the standards set in the Domestic Mail Manual
(DMM) for Postage discounts, Sorting, Barcodes, and Piece counts.
Barcode Specifications – Barcoding your mail affects mailpiece design. Because there are no
OCR readability standards, you have more latitude in selecting colors, type styles, and the
location of the address if you barcode your mail. When an automation rate mailing barcoded
according to postal standards is processed directly on BCSs, the mailing doesn't need to meet
the standards for MLOCR readability. If you aren't able to barcode your mailpieces, they should
meet all MLOCR readability standards. Meeting these standards will enable a mailing agent
(such as a presort bureau or letter shop) to barcode your mail using an MLOCR and to be sure
that the read rates will be high. Mailings of letter-size pieces that receive a barcode discount
require the customer to barcode 100 percent of the pieces with an Intelligent Mail barcode.
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Physical Standards for Commercial Letters and Postcards
The Postal Service classifies letters and cards into one of three categories:
 Machinable
 Nonmachinable
 Automation
For the purposes of determining mailability or machinability, the length for letters and cards is
the dimension parallel to the address as read.
Machinable Letters and Cards – Letters and cards having an accurate address and that can be
processed on Postal Service equipment is “machinable” and eligible for “presort” prices.
Machinable mailpieces must meet specific standards, including size, shape, and weight.
Machinable letters cannot have any nonmachinable characteristics.
Maximum weight for First-Class Mail and Standard Mail machinable letters is 3.3 ounces and
Periodicals mailed as a lettersize is 3.5 ounces
Nonmachinable Letters – Presorted First-Class Mail letters are subject to a nonmachinable
surcharge if they have nonmachinable characteristics. (Note: nonmachinable characteristics do
not apply to pieces mailed at card prices.) Standard Mail letters weighing 3.3 ounces or less and
having one or more nonmachinable characteristics are subject to nonmachinable letter prices.
Maximum weight for First-Class Mail and Periodicals is 3.5 ounces, and for Standard Mail 3.3
ounces
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Nonmachinable Criteria – A letter-size piece is nonmachinable if it has one or more of the
following characteristics:
 Has an aspect ratio (length divided by height) of less than 1.3 or more than 2.5.
 Is polybagged, polywrapped, enclosed in any plastic material, or has an exterior surface
made of a material that is not paper. Windows in envelopes made of paper do not make
mailpieces nonmachinable. Attachments allowable under applicable eligibility standards do
not make mailpieces nonmachinable.
 Contains clasps, strings, buttons, or similar closure devices.
 Contains items such as pens, pencils, keys, or coins that cause the thickness of the mailpiece
to be uneven; or loose keys or coins or similar objects not affixed to the contents within the
mailpiece.
Loose items may cause a letter to be nonmailable when mailed in paper envelopes.
Is too rigid (does not bend easily when subjected to a transport belt tension of 40 pounds
around an 11-inch diameter turn).
For pieces more than 4-1/4 inches high or 6 inches long, the thickness is less than 0.009 inch.
 Has a delivery address parallel to the shorter dimension of the mailpiece.
 Is a self-mailer that is not prepared according to tabbing and sealing regulations.
 Is a booklet that is not prepared according to tabbing and sealing regulations.
Pens, pencils, key rings, bottle caps, and other similar odd-shaped items are not permitted in
letter-size or flat-size paper envelopes unless they are wrapped within the other contents of the
envelope to streamline the shape of the mailpiece and prevent damage during postal
processing. If an odd-shaped item is not properly wrapped, it could burst through the envelope
and cause injury to employees and damage to USPS processing equipment.
Odd-shaped items that are properly wrapped within paper envelopes and sent at letter prices
may be subject to the nonmachinable surcharge. Certain types of odd-shaped items, when
properly wrapped, are permitted as automation price letter-size mail.
Aspect Ratio
Machinable Aspect Ratio: 1.5
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Automation Letters and Cards
Letter-size mailpieces that are machinable and display the correct Intelligent Mail barcode may
qualify for “automation” prices. A letter or card meets automation standards and qualifies for
automation prices if it meets the specific addressing, barcoding, and design standards.
Physical Standards:
 Maximum weight: 3.5 ounces (Heavy letter mail weighing over 3 ounces must be in a sealed
envelope, have no stiff enclosures and bear a barcode in the address block)
 Rectangular. Aspect ratio (length divided by height): 1.3 to 2.5
Dimensions:
 Minimum: 3-1/2 inches high, 5 inches long, and either 0.007 inch thick if not more than 41/4 inches high and 6 inches long; or 0.009 inch thick if more than 4-1/4 inches high or 6
inches long, or both.
 Maximum for First-Class Mail card prices: 4-1/4 inches high, 6 inches long, and 0.016 inch
thick.
 Maximum for letters and other cards: 6-1/8 inches high, 11-1/2 inches long, and 1/4 inch
thick.
*Length is the dimension parallel to the address as read
Design Standards – Making your mailpieces automation-compatible is important. Automated
equipment can process mail more efficiently, allowing the Postal Service to maintain lower rates
for those pieces.
Your automation-compatible mailpiece should:
 Meet the size and weight standards in this chapter.
 Be made of good quality white or light-colored paper.
 Contain no sharp or bulky items.
 Be sealed securely.
 Be readable by automation equipment.
A USPS Mailpiece Design Analyst (MDA) is a primary resource for obtaining instructions to
design automation-compatible mailpieces.
Mailpiece Materials, Construction and Sealing – The following recommendations for paper and
card stock refer to the minimum basis weight of the materials. Basis weight is defined as the
weight (in pounds) of a ream (500 sheets) cut to a standard size for that grade. For example,
envelopes for automation-rate mailings should be constructed of paper weighing at least 16 lbs
(minimum basis weight). The specific grade of 16 lb paper recommended for envelopes is
defined as 500 sheets measuring 17 inches by 22 inches by 17 inches by 22 inches by 500
sheets). Recycled paper and card stock are compatible with postal automation if the materials
satisfy the recommendations and the guidelines of the USPS.
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Envelopes – Envelopes and other letter-size containers sealed on all four edges must be made of
paper with a minimum basis weight of 16 pounds. For business reply mail envelopes, the
minimum basis weight is 20 pounds (DMM section S922).
Cards – Thickness, stiffness, and tear strength are the most important compatibility
characteristics for cards.
The minimum thickness is 0.007 inch. The minimum required basis weight for card stock is 75 lbs
or greater, with none less than 71.25 lbs.
The grain of cards should be oriented parallel to the long dimension of the card. Long-grain
cards are less likely to jam postal automated equipment than are cards with the grain parallel to
the short dimension of the card.
Cards at automation rates must be 0.009 inch thick if more than 4-1/4 inches high or 6 inches
long, or both. When preparing postcards with perforations, it is recommended that the perf-tobridge ratio be 1:1. A typical perforation is from 0.1 inch to 0.2 inch. Vertical perforations in the
center area of the card are not recommended.
Sealing – Letter-size mailpieces not in envelopes must be secured (tabbed) to prevent an open
edge from jamming high-speed processing equipment. Standards for tabbing are based on basis
weight of paper stock used and the location of the folded or bound edge. As an alternative to
tabbing, the open edge of the length of the mailpiece may be continuously glued or spot glued.
Tabs, wafer seals, cellophane tape, or permanent glue (continuous or spot) must not interfere
with recognition of the barcode, rate marking, postage identification, or required address
information. Cellophane tape is not acceptable within the barcode clear zone.
Basis Weight – The minimum basis weight standards vary, depending on the construction of the
mailpiece.
Folded Letter-Size Self-Mailers – Folded edge must be on the bottom and parallel to the longest
dimension (length) and the address of the mailpiece.
Letter-Size Booklet-Type Mailpieces – Booklets consist of bound sheets or pages. Sheets that
are fastened with at least two staples in the manufacturing fold (saddle stitched), perfect bound,
pressed-glued, or joined together by another binding method that produces an end where
pages are attached together are considered booklets.
Booklets are open on three sides before sealing, similar in design to a book. Spiral bindings are
not machinable so booklets prepared with spiral bindings do not qualify for automation prices.
Large booklets may be folded to letter-size for mailing if the final mailpiece remains uniform in
thickness. The mailpiece must be tabbed (secured) with non perforated 1-1/2'' tabs, continuous
or spot glue, or 1-1/2'' wide tape.
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Postcards – Require a minimum basis weight of 75 lbs or greater. Double postcards must have
folded edge at the bottom. The top edge must be secured with two tabs, or spot glue one inch
from both edges or by a continuous glue line.
Incompatible Materials and Sealing Methods
Coverings – Certain materials are incompatible with postal automation because they cannot be
transported at high speeds through mail processing equipment or they do not allow quality
printing of a barcode on the mailpiece for optimal scanning. These materials include polywrap,
shrink-wrap, spun-bonded olefin, and other plastic-like coverings.
Certain types of coated papers should also be avoided if the coating is so glossy that it can
prevent a postal-applied barcode from drying within 1 second. Consult a mailpiece design
analyst about nonpaper coverings before you produce your mailpieces.
Dark Fibers and Patterns – Paper containing dark fibers or background patterns is not
recommended because it can cause interference during MLOCR and BCS processing.
The dark patterns can be mistaken for part of the address or barcode information. If you use
such paper, make sure that the contrast ratio between the fibers (or pattern) and the
background does not exceed 15 percent in the red and the green portions of the optical
spectrum.
Paper Types – Envelope paper and paper material on other letter-size mailpieces—such as
folded self-mailers— must have sufficient opacity (enough density) to prevent any printing on
the inside of the mailpieces from showing through in the MLOCR read area or in the barcode
clear zone.
Avoid using textured paper—paper with other than a smooth surface—if the texture adversely
affects print quality (that is, causes broken characters or smudged spaces). Because fluorescent
paper can confuse the postage detector on postal facer-canceller machines, it's not suitable
paper for automation mailings.
Closures – Because closures can jam equipment and damage mail during processing, don't use
clasps, staples, string, buttons, or similar protrusions for closing letter-size automation pieces.
And make sure that the pieces' edges are not notched, scalloped, or curved.
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Physical Standards for Commercial Flats
Address Font (applies to all commercial flats)
 Flats must have the address of the intended recipient, visible and legible, only on the side of
the piece bearing postage. (Periodicals do not display postage and the address may appear
on either side.)
 Use at least 8-point type for addresses on flats prepared without delivery point barcodes.
 Sans-serif font printed in all capital letters preferred.
 Individual characters in the address cannot overlap.
 Individual lines in the address cannot touch or overlap. A minimum 0.028-inch clear space
between lines preferred.
 Flats with Intelligent Mail barcode delivery point routing codes may have a minimum of 6point type if addresses in all capital letters
 Barcodes must be at least 1/8 inch from any edge of the address side
Retail and Nonautomation Flats
Shape – Must be rectangular, with four square corners, or with finished corners that do not
exceed a radius of 0.125 inch (1/8 inch). The length of a flat-size mailpiece is the longest
dimension and height is the dimension perpendicular to the length.
Maximum Weight:
 First-Class Mail 13 ounces
 Standard Mail less than 16 ounces
 Bound Printed Matter 15 pounds
Uniform Thickness – The contents must be uniformly thick so that any bumps, protrusions, or
irregularities do not cause more than 1/4 inch variance in thickness (see DMM 301). You may
exclude the outer edges of a mailpiece (1 inch from each edge) when the contents do not
extend to the edges.
Flexibility – All flat-size pieces must meet flexibility criteria (see DMM 301) Mailpieces that do
not meet flexibility standards or are not uniform in thickness pay:
 First-Class Mail—Parcel Prices
 Standard Mail— Flat-Nonmachinable or Parcel Prices
 Bound Printed Matter—Parcel Prices
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Automation Flats
Automation or Commercial flats must also be uniform in thickness, and meet flexibility,
deflection and polywrap criteria. Clasps, strings, buttons, or other protrusions, and also staples
(unless the staples are properly used as a binding method) are prohibited. Flat-size pieces
meeting the automation standards may qualify for automation or Periodicals machinable prices.
Size, weight, thickness, polywrap, and flexibility and preparation standards vary by class of mail
so refer to the Quick Service Guide or DMM for more information.
Maximum Weight:
 First-Class Mail 13 ounces
 Periodicals 20 ounces
 Standard Mail 16 ounces
 Bound Printed Matter 20 ounces
Address Placement – Mailers must place the delivery address parallel or perpendicular to the
top edge on the front or the back of the mailpiece and within the top half of the mailpiece. If
there is a bound or folded edge, the address as read must be within the top half when the
bound or folded edge is to the right. It cannot be upside down as read in relation to the top
edge.
First-Class Mail Automation Letters, Postcards and Standard Mail Automation Letters
Maximum weight: 3.5 ounces. Heavy letter mail weighing more than 3 ounces must have a
barcode in the address block and be prepared in a sealed envelope.
Fee – Annual presort mailing fee is required
Eligibility Standards – (See Chapter 1 for First-Class Mail and Standard Mail content eligibility
Information.)
 First-Class Mail mailings of 500 or more addressed pieces
 Standard Mail mailings of 200 pieces or 50 pounds (Standard Mail letters that weigh more
than 3.3 ounces but not more than 3.5 ounces pay piece/pound postage but receive a
discount.)
 100% Intelligent Mail barcoded, sorted, and marked as described below.
 All pieces must be automation-compatible. Pieces mailed at card prices and First-Class Mail
letter prices must meet separate 500-piece minimums.
 All letter-size reply cards and envelopes (Business Reply Mail, Courtesy Reply Mail, and
Meter Reply Mail) provided as enclosures must be automation-compatible.
 Each piece must also include a complete delivery address with correct ZIP Code or ZIP+4
Code.
 Addresses on all pieces must be updated within 95 days before mailing through a USPSapproved Move-Update method (e.g., ACS, NCOALink, or the appropriate ancillary service
endorsement, except Forwarding Service Requested)
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Addresses must be matched using a CASS certified process as follows:
To Qualify For: You Must Verify:
By This Date:
Presorted
5 Digit ZIP
Within 12 Months of Mailing Date
Automation
Complete Address
Within 180 Days of Mailing Date
Carrier Route
Carrier Route Information
Within 90 Days of Mailing Date
Postage Payment and Documentation – Payment Options include Precanceled Stamp, Meter
Imprint, and Permit Imprint.
Postage Statements:
 First-Class Mail – PS Form 3600-R or approved facsimile
 Standard Mail Regular – PS Form 3602-R, or approved facsimile
 Nonprofit – PS Form 3602-N, or approved facsimile.
PS Form 3553 must be retained for 1 year. Supporting Documentation is required unless correct
price affixed to each piece or unless each piece is of identical weight and separated by price
when presented for acceptance. Documentation must be generated by PAVE-certified software
or printed in standardized format.
Mail Preparation – Mark each piece with “First-Class Mail” and “AUTO” in the postage area
Pieces not marked “AUTO” must bear both the “Presorted” and “PRSRT” and “First-Class Mail”
markings:
 Regular - “Presorted Standard” or “PRSRT STD,” “Standard” or “STD”
 Nonprofit - “Nonprofit Organization” or “NONPROFIT ORG.” or “NONPROFIT”
For pieces bearing a delivery point Intelligent Mail barcode in the address block or on an insert
visible through a window, “AUTO” not required.
When preparing full trays, mailers must fill all possible 2-foot trays first; if there is mail
remaining for the Presort destination, mailers must use a combination of 1-foot and 2-foot trays
that result in the fewest total number of trays for that presort level. Barcoded tray labels are
required and trays, in most cases, should be sleeved and strapped.
Entry/Deposit – Enter mailings at an acceptance point designated by USPS. For Standard Mail,
destination discounts apply to mail prepared as prescribed by USPS and addressed for delivery
within service area of destination BMC/ASF or SCF.
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3 Work Share Incentives
Mailing Services
Depending on your needs and resources, there are four different approaches to using mail for
your business.
Retail Mailing Services
With retail mailing services, you can easily send any quantity of mail at full postage rates
without any special preparation. Address, add postage, and send—it’s fast and easy.
 Easy mail preparation
 Convenient drop-off options
 Expedited services available
Discount Mailing Services
With discount or “bulk” mailing services, you receive significant postage discounts for larger
mailings by preparing and sorting your mail according to Postal Service® guidelines and
depositing it at designated locations.
 Reduced postage costs
 Many options available
 Promote your business and create a professional image
Online Mailing Services
From desktop to doorstep, online mailing services let you use your computer to upload or create
postcards, letters and newsletters. Your mailpieces are printed, prepared, and delivered directly
to your customers.
 No permit or mailing fees
 Discounted postage rates available
 Mail anytime from your desk
Mail Service Providers
Have a service provider pick up your mail. They combine it with mail from others and sort it
using automation equipment to qualify for deeper discounts and share some of those savings
with you.
 Easy way to access postage discounts
 Minimize the work you have to do
 A range of value added services are often available
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Work Share Incentives
Discount mail, or “bulk mail,” is your best option if you mail in volume. In order to claim these
lower rates, you must have a minimum quantity and do some additional work to make your mail
easier for the Postal Service to handle. In return for this additional work, the Postal Service®
shares some its savings in the form of postage discounts. By sharing some of the work the Postal
Service shares some of the savings with the mailer. Hence the term “work share” discount.
How Does It Work?
Your discount depends on the mailing service you choose and the work you do. For example, if
you want to mail 1,000 letter-sized flyers to everyone in your ZIP Code advertising your
business's sale, if you mail the flyer as a First-Class mailpiece you will pay substantially more
postage than if you mail the flyers using Standard Mail (however, First-Class delivery times are
much faster than Standard Mail). Additional savings are available if you mail to everyone in your
ZIP Code, add a barcode, sort them by carrier route, and deposit them at the Post Office that
handles their delivery.
The postage depends on the mailing service you choose and the characteristics of your
mailpiece.
 For any discount mailing, you must do some of the work the Postal Service would otherwise
do. The work you do, such as preparing, sorting, and entering your mailing, can lower your
postage costs.
 Discounts for mail that can be processed on automation equipment tends to qualify for
bigger discounts. These are referred to as “Automation Rates”, which are lower than
“Nonautomation Rates”. As of January 2013, all Automation Rate presorted mailings must
meet the USPS Basic IMb requirements, in order to qualify for those rates. Mailing Software
is used to cleanse addresses, presort the mailing list and produce the required electronic
documentation and format barcodes that are required on mail pieces and mail containers.
 Note: The USPS intends to require the use of a Full Service IMb barcode to qualify for
automation discounts. However, an implementation date has not been approved by the
PRC. The USPS has published information and an overview of the Full Service Requirements at:
https://ribbs.usps.gov/intelligentmail/documents/tech_guides/FullServiceIntelligentMai
lFactSheet.pdf
https://ribbs.usps.gov/intelligentmail_guides/documents/tech_guides/OverviewIntellig
entMailFullService.pdf

Discounts are also offered when mailers are willing to enter mailings at facilities closer to
the destination, referred to as Entry Discounts or Destination Discounts.
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


The discount is greater based on the density and volume of mail going into a specific Zip
Code or ZIP Code Scheme. For example, pieces in a tray of mail that all goes to a single 5digit ZIP destination will generally get a better (lower) rate than pieces in a mail tray that
consists of pieces going to an assortment of ZIP codes. Work-share postage discounts from
the USPS are available for both “List Mailings” (likely to be produced at an outside
commercial supplier; where all pieces are identical) and “Commingled Mailings” (likely
processed by a presort bureau; that include multiple weights and sizes).
You must pay an annual mailing fee at each facility where you enter mail. Different mailing
services may require separate fees. For example, First-Class Mail®, Standard Mail®, and
Package Services require separate annual presort mailing fees. As of January 26th 2014,
mailers can have this annual mailing fee waived if 90% or more of the pieces they submitted
in the prior year qualified as Full Service IMb pieces. This 90% threshold must be maintained
throughout the year to avoid being charged the fee once it’s been waived.
Other optional aspects of a discount mailing, such as using permit imprints, business reply
mail, or mailing endorsements, may require additional fees.
Move Update
The Move Update standard is a means of reducing the number of mailpieces in a mailing that
require forwarding or return by the periodic matching of a mailer’s address records with
customer-filed change-of-address orders received and maintained by the Postal Service.
Mailers who claim presorted or automation prices for First-Class Mail or Standard Mail must
demonstrate that they have updated their mailing list within 95 days before the mailing date.
One exception would be when a customer contacts a business and as a result is added to the
list, the newly added address can “ride” with the list until the next cycle for update. The address
can be added to the list only if the customer has requested services or literature or has
purchased merchandise.
The Move Update regulation does not apply to mail bearing an alternative address format, i.e.,
“Postal Customer” or “Occupant”, “Householder”, or “Resident”. This is because mail with an
occupant or an exceptional address format is delivered as addressed to the physical location
rather than the “person”.
The Move Update standard is met when an address used on a mailpiece in a mailing for any
class of mail is updated with an approved method and the same address is used in a commercial
First-Class Mail or Standard Mail mailing within 95 days after the address has been updated.
The Postal Service makes the following move update methods available to meet the needs of
mailers at reasonable costs:
 Address Change Service (ACS)
 National Change of Address Linkage System (NCOALink)
 NCOALink MPE
 Ancillary Service Endorsements (ASE) except for Forwarding Service Requested.
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NCOALink is considered proactive or pre-mailing because the mailer can receive address
changes prior to mail creation and entry into the postal system.
ACS, ASE and NCOALink MPE may be considered reactive or post-mailing solutions because
essentially the mailpieces are created, addressed and entered into the postal system (or presort
house system as with NCOALink MPE), and the mail owner is notified per various means of
address changes later.
Alternative Methods – Alternative methods are available for First-Class Mail mailers and require
USPS approval. These include the 99% Accurate Method and the Legal Restriction Method.
Mailers should work with their post office for these methods.
Certificate of Compliance – Regardless of the Move Update solution used, the mailer's signature
on the postage statement certifies that the mailing complies with all relevant standards,
including the Move Update. A copy of Form PS6014 Certification of Move Update Compliance
must be retained with the postage statement and other documentation for each mailing.
Mailers may need to experiment with several options to determine the most effective method
to update addresses in different mailing situations.
Address Change Service (ACS) is a process for mailers to receive address changes electronically
from the Postal Service to update their next mailing. Depending on a mailpiece's class and
endorsement, mailers may also receive information on addresses that are undeliverable for
reasons other than a customer move.
There are two options:
 OneCode ACS or Full-Service ACS using the Intelligent Mail bar code and a mailer ID, or
 Traditional ACS used with a participant code and an appropriate ancillary service
endorsement
For either option, the “Address Service Requested” or “Change Service Requested”
endorsements can be printed on First-Class Mail and are required for Standard Mail.
To complete the Move Update process, the mailer must make the address changes received as a
result of notifications. It is recommended that mailers retain address correction records for up
to two years.
Ancillary Service Endorsements (ASEs) allow the mailer to obtain, on request, the recipient’s
new (forwarding) address (if that recipient had filed a change-of-address - COA - order with the
Postal Service) or the reason for nondelivery.
Approved endorsements include Address Service Requested, Return Service Requested,
temporary Return Service Requested and Change Service Requested (used with Address Change
Service for First-Class Mail or as a stand-alone option for Standard Mail).
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The endorsements are the same for all classes of mail, but the treatment and cost differ by class
of mail. The mailer must pay any applicable charges for forwarding or return of the mailpiece,
and a separate address notification charge.
To complete the Move Update process, the mailer must make the address changes received as a
result of the use of the approved ancillary service endorsement. It is recommended that mailers
retain address correction records for up to two years.For more information on Ancillary Service
Endorsements, please see Chapter 6.
National Change of Address Linkage System (NCOALink) is an efficient pre-mailing method
leveraging the most current USPS address information, including standardized and delivery point
coded addresses, for matches made to the NCOALink file for individual, family, and business
moves. Look for NCOALink solutions that provide 48-months of COA history to increase your
opportunity to correct addresses.
Benefits include that addresses are corrected before mailpieces are addressed and entered into
the mail stream, maximizing the opportunity for a fast delivery of revenue-collection and
revenue-generating mailpieces. This can often prevent the need to regenerate and/or re-mail
mailpieces.
CASS-certified solutions with an NCOALink element enable mailers of letter-size and flat-size
mailpieces to maximize their postal incentives for qualifying mailings, sometimes at lower prices
than a presort company can offer.
NCOALink solutions can be a very valid option for proactive move updates. The investment can
be substantially less, especially comparing the super-low cost per correction against the overall
costs associated with reactive (post-mailing) solutions that may include regeneration and remailing of mailpieces. Even considering the charge for every record submitted (versus only the
correction fee when using ancillary endorsements), most savvy mailers would only want to
submit the most accurate and concise mailpieces to the USPS. Mailers wouldn't want to give
the USPS pieces that may be delayed or not delivered. Nor would they have wanted to waste
the investment in creating, printing, folding, inserting and posting because of inaccurate
addresses. Waiting for address correction notices from the USPS could negatively affect
turnaround time for subsequent mailings.
National Change of Address Linkage System Mail Processing Equipment (NCOALink MPE)
solutions replaced FASTforward systems in January 2013. These solutions utilize the NCOALink
system in conjunction with Multiline Optical Character Readers (MLOCR) to enable physical
mailpieces to be updated against the USPS COA database. If a change of address is provided, the
new address is printed directly on the mailpiece. Presort companies commonly offer the
NCOALink MPE service. Mailers should consider the following:
NCOALink MPE only contains 18 months of COA history. Therefore, if a particular
recipient moved longer than 18 months ago, that new address would not be recognized,
potentially delaying delivery.
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Partnering with a presort company not only enables mailers to achieve some level of postal
incentive (discount) but it also serves as a simple means of meeting the Move Update standard.
Outsourcing
What selection criteria should you use when all your outsourcing candidates appear equally
qualified to perform your work and the pricing is close? How many times have you heard "they
are all about the same so I went with my gut feeling"? Basically that means the vendors did a
poor job of educating the customer or the customer didn't put enough effort into understanding
the differences in the vendors. Either way, the decision becomes a gamble on future
satisfaction.
Selecting an Outsourcing Partner
There should be two major considerations in selecting a document and mailing outsourcing
company. The usual outsourcing price quotation is based on what your company is doing
currently. A great outsourcing company will ask questions, understanding if you have
requirements that are not being met and what you would like to improve. A great outsourcing
company will produce two quotes - one that compares apples to apples and one with
recommendations for improvements and related costs, demonstrating how to reduce
production costs.
Understand the values of the outsourcing company by listening to how they represent their
company. Is the sales presentation based on the number of laser printers and mail machines or
do they focus more on satisfied customers, quality, and solving your business problems. Is the
outsourcing company flexible, willing to make changes as the customers' needs change or do
you get the feeling you have to conform to them. Do their customers really speak highly about
the relationship and provide strong recommendations? Has the outsourcing company honored
all commitments on service and turnaround with their customers or does support drop after
contracts are signed?
Comparing Costs: In-House vs. Outsourcing
If the primary goal of outsourcing is to reduce costs then why do most companies fail to
accurately assess their internal costs? Certainly capital equipment investments in printers, mail
machines, servers, supplies, maintenance contracts and operator salaries are easy numbers to
obtain - in fact, most studies stop right there.
What's wrong with this comparison?
The outsourcing company, if properly managed, has the same hidden "soft" costs of running any
production operation. Therefore, an accurate comparison to an outsourcing quotation should
include true in-house costs, not just hard dollar line items in budgets. An example of soft costs
rarely addressed is indirect labor cost, such as accounting, budgeting, interviewing, training,
recruiting, payroll, benefits administration, mailroom management, temporary labor, IT support,
building facilities management, vendor contract management, shipping and receiving,
purchasing, and mail delivery.
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What about hidden expenses that are buried in larger line items - warehouse storage space,
delivery vehicle usage for mail delivery, various types of insurance, real estate and utility costs,
and so on? All of these costs are included in outsource pricing. If the objective is a true, accurate
comparison of in-house versus outsourcing, then be prepared to spend some time analyzing real
internal costs. The best method in selecting an outsourcing company should not be derived from
personal references or ones that you know or trust; you must investigate them thoroughly write
a good contract and spell out all requirements prior to signing. The extra investment in looking
beyond pricing and capabilities will pay off handsomely insuring a mutually successful
outsourcing relationship. Rest assured, all outsourcing companies are not created equal.
Reduce Cost – The most obvious reason companies consider document outsourcing is to reduce
capital investment and on-going expenses for laser printers, mail machines, software, and
personnel - all of which are utilized on a part time basis. Strong outsourcing partners offer stateof-the-art production facilities allowing you to pay only for your company's usage.
Concentrate on Core Competencies – In a very competitive world, successful companies have
become more focused and specialized than ever before. Sales and revenue growth are
imperative - building fixed overhead is not. Today, many organizations recognize there is no
competitive advantage in building and managing print and mail operations, especially when
print and mail will diminish over time with the future transition to electronic documents; these
are important details to cover when looking to outsource presort services, facility management
operations, and international re-mailing services.
Lack of Internal Expertise – Few companies can afford to hire a full time staff to research and
stay abreast of technology changes in laser printing, mail production software and equipment
and postal regulations. Evaluating, purchasing and implementing electronic document
technology raise the bar significantly. Thriving outsourcing companies have that specialized
expertise - that's why they are successful. Continued technology advances, increasing wages for
the best people and decreasing talent pool insure outsourcing will grow dramatically.
Mail Service Providers
You can get help with discount mailing from a business that specializes in designing, preparing,
and sorting mail. These businesses, typically called “mail service providers” can help you with a
single part of a discount mailing, or you can hire them to handle the entire mailing, from
creation to mail entry.
Mail service providers can help you accomplish some or all of the following:
 Purchase or rent an address list.
 Manage your address database.
 Design and print your mailpieces.
 Sort your mailpieces.
 Reduce your postage rate.
 Enter your mail into the mail stream.
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Planning a Discount Mailing
Several steps are involved in the discount mailing process. A successful discount mailing requires
careful consideration of each step.
Choosing a Class of Mail - Which mailing class you choose depends on the shape, weight, and
content of your mail, along with speed of delivery.
Choosing a Postage Payment Method - The Postal Service offers three ways for you to pay for
and apply postage to your mailpieces; Postage Meter imprint, Permit indicia or Precancelled
Stamps.
Preparing Your Mail - “Machinable,” “nonmachinable,” and “automation” are the three ways
the Postal Service classifies how mailpieces are prepared. These classifications are based on the
ability of your mailpiece to be processed on Postal Service equipment.
Sorting Your Mail - Sort your mail according to Postal Service standards.
Entering Your Mail - The minimum requirement is to enter your mail at the business mail entry
unit (BMEU) or Post Office where you hold a mailing permit. You can receive additional
discounts by transporting your mail to postal facilities closer to where it will be delivered. These
are referred to as Destination Entry Discounts.
After you make these choices, prepare your mailpieces, then sort them by Postal Service
standards, and enter your mailing at a postal facility. For each step, you will need to complete
the minimum level of work required by The Postal Service.
You may also choose to complete higher levels of work to receive greater postage discounts. To
qualify for bulk or commercial volume discounts, you must mail a minimum number of pieces:
 500 pieces for First-Class Mail
 200 pieces (or 50 lbs of mail) for Standard Mail
 50 pieces for Parcel Select®
 50 pieces or 50 lbs for Parcel Select Non-presort
 200 pieces or 50 lbs for Parcel Select Lightweight
 300 pieces for Presorted or Carrier Route Bound Printed Matter
 300 pieces for Library Mail
 300 pieces for Media Mail
In some cases, the characteristics of your mailpieces will determine which rates and discounts
are available to you.
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4 Addressing and Automation
Addressing Guidelines
Addresses should be typewritten or machine printed in dark ink on a light background using
uppercase letters. Except for the hyphen in the ZIP+4 Code, all punctuation is omitted. All lines
of the address are formatted with a uniform left margin. When using a foreign address, always
place the country name in capital letters by itself on the last line.
The Delivery Address Line (the line directly above the city, state, and Zip Code) and the Last Line
of addresses (City, State, and Zip Code) output to the mailpiece should be complete,
standardized, and validated with the ZIP+4 File and City State File, respectively. A standardized
address is one that is fully spelled out, abbreviated by using the Postal Service standard
abbreviations or as shown in the current Postal Service ZIP+4 File.
The Postal Service defines a complete address as one that has all the address elements
necessary to allow an exact match with the current ZIP+4 and City State Files to obtain the finest
level of ZIP+4 and delivery point codes for the delivery address. A complete address is required
on mail mailed at automation rate whether completed internally or externally.
Address Management Software Products & Services – CASS (Coding Accuracy Support System)
Certification ensures compliance with postal regulations as it pertains directly to addressing
standards. The CASS process improves the accuracy of delivery point codes, ZIP+4 codes, 5-digit
ZIP Codes, and carrier route codes on mailpieces. CASS provides a common platform to measure
the quality of address matching software and to diagnose and correct software problems. Any
mailing claiming at an automation price must be produced from address lists properly matched
and coded with CASS-certified address matching methods.
Addresses must be matched using a CASS certified process as follows:
To Qualify For: You Must Verify:
By This Date:
Presorted
5 Digit ZIP
Within 12 Months of Mailing Date
Automation
Complete Address
Within 180 Days of Mailing Date
Carrier Route
Carrier Route Information
Within 90 Days of Mailing Date
Delivery Point Validation (DPV) identifies whether a ZIP+4 coded address is currently
represented in the USPS delivery file as a known address record. The DPV product allows users
to confirm known addresses as well as identify potential addressing issues that may hinder
delivery. Correcting potential addressing issues can reduce the amount of Undeliverable-AsAddressed (UAA) pieces, which in turn result in more efficient mail processing and delivery.
The DPV Product Confirms:
 The known address has verifiable primary and secondary data.
 The known address has verifiable primary but not secondary data.
 The address cannot be verified as a known address.
 The DPV product does not append any missing data or correct any address elements.
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Locatable Address Conversion System (LACSLink) is a secure dataset of converted addresses
that primarily arise from the implementation of 911 emergency response system, which
commonly involves changing rural-style addresses to city-style addresses. The LACSLink product
also contains existing city-style addresses that have been renamed or renumbered.
Address Element Correction (AEC and AECII)
AEC is a quality process developed by the USPS with industry support. AEC focuses on inaccurate
addresses, specifically those deliverable addresses that can’t be matched to a USPS ZIP+4 code
using commercially available CASS certified address-matching. If an address is missing an
element, the software may lack sufficient information to determine the correct or most accurate
match to the ZIP+4 product and, therefore may not provide a ZIP+4 code. After an address goes
through the AEC process and is not resolved, it becomes a candidate for AECII.
AECII is an enhancement to the existing AEC service, which identifies and corrects “bad”
addresses using a complex computer program. “Bad” addresses that cannot be resolved using
the AEC are submitted, via AECII, to delivery offices for review and resolution by the same
people who deliver the mail for you every day. When USPS delivery personnel are able to
identify and correct address errors, or to identify addresses that do not exist, address quality is
improved.
Requirements – The entire address should be contained in an imaginary rectangle known as the
Optical Character Reader (OCR) clear area extends from 5/8" to 2 3/4" from the bottom of the
mailpiece, with 1/2" margins on each side, and Return Address area positioned in the upper
right corner.
The barcode clear zone is positioned 5/8" from the bottom, and extends 4 3/4" from the right
edge of the mailpiece. This area is reserved to display the corresponding Intelligent Mail barcode (IMb), typically applied by the Postal Service or licensed vendor.
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Uppercase letters are preferred on all lines of the address block. Format all lines of the address
with a uniform left margin. Address characters must not touch and should be equally spaced. All
lines of the address should be parallel to the bottom of the envelope. Be sure to include all
pertinent information such as the directional code, apartment, floor, and suite number.
Extraneous (non-address) printing that appears in the OCR read area should be positioned
above the delivery address line and as far away from the address block as possible.
The “Attention Line” is placed above the Recipient Line, that is, above the name of the firm to
which the mailpiece is directed.
Dual Addresses – Eliminate dual addresses on the output mailpiece, if possible, although mailer
files may maintain both mailing and physical addresses. However, if dual addresses are used,
place the intended delivery address on the line immediately above the city, state, and ZIP+4
code. This normally is the Post Office Box address. The other address must be placed on a
separate line above the Delivery Address Line. The ZIP+4 code used must be the correct code for
the delivery address on the line directly above the city, state, and ZIP Code.
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Readability – An automation readable mailpiece is defined as one that contains an accurate,
correctly formatted, complete address or ZIP+4 IMb and is readable on an OCR and/or a barcode
sorter (BCS). For additional information on designing mail for OCR/BCS readability, we suggest
you obtain a copy of Publication 28, Postal Addressing Standards.
Required Use of Return Addresses – Sender’s domestic return address must appear legibly on:
 Mail of any class bearing a printed ancillary service request or an ancillary service request
embedded within an Intelligent Mail barcode (IMb)
 Official Mail
 Mail paid with precancelled stamps (except Standard Mail pieces weighing 13 ounces or less
and bearing a mailers postmark in accordance with 604.3.4)
 Matter bearing a company permit imprint
 Priority Mail
 Periodicals in envelopes or wraps
 Package Services (except unendorsed Bound Printed Matter)
 Registered Mail
 Insured Mail
 Collect on Delivery (COD) Mail
 Certified Mail if a return receipt is requested
 Express Mail if a return receipt is requested
 Detached Address Labels (DALs)
International Addressing Requirements
Due to heightened security, many foreign postal administrations require a complete return
address (Your name and address, including ZIP Code and country of origin) be shown in the
upper left corner of the address side on all mail, and complete delivery address in roman letters
and Arabic numerals using the following format:
Line 1: NAME OF ADDRESSEE
Line 2: STREET ADDRESS OR POST OFFICE BOX NUMBER
Line 3: CITY OR TOWN NAME, OTHER PRINCIPAL SUBDIVISION (such as PROVINCE,
STATE, or COUNTY) AND POSTAL CODE (IF KNOWN)
Note: In some countries, the postal code may precede the city or town name.
Line 4: FULL COUNTRY NAME
Examples of correctly formatted foreign addresses are as follows:
MS JANE DOE
MR W B KORN
SUSAN DIETRIC-FISCHER
117 RUSSELL DRIVE
APARTADO 3067
HARTMANNSTRASSE 7
LONDON WIP 6HQ
48807 PUERTO VALLARTA JALISCO
5300 BONN 1
GREAT BRITAIN
MEXICO
GERMANY
Canada Only –On mail to Canada, there must be two spaces between the province abbreviation
and the postal code.
For the most current international mailing requirements and standards, please visit
http://pe.usps.gov/text/imm/welcome.htm
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Window Envelopes and Inserts
To ensure successful automated processing, design your window envelopes and their inserts so
that the entire address and postal bar code (when included) appear in the window area during
the full movement of the insert – “Tap Test”. While there is no minimum window size
requirement, the address must pass the “Tap Test” to obtain automation rate discounts.
Address/Window Clearance
For MLOCR processing, at least
1/8”of clearance (1/4” of clearance
is preferred) must be maintained
between the address and the edges
of the window when the insert is
moved to its full limits inside the
envelope. MLOCRs need this clear
space to distinguish the address from the edge of the window or shadows cast near the address
by the edge of the window. Non-address information must not show in the window clearance
area.
Excessive Address Insert Shift
Vertical Address Insert Shift Test
To test the vertical insert shift of the address within a
window, do the following:
 Check that a clear space of at least 1/8” is
maintained between the top of the recipient line
in the address and the top edge of the window without tapping the mailpiece.
 Tap the mailpiece on a flat horizontal surface on its bottom edge to jog the insert as far
down into the envelope as it can go.
 Check that a clear space of at least 1/8” is still maintained between the bottom of the Post
Office, state, and ZIP Code line of the address and the bottom edge of the window.
Horizontal Address Insert Shift Test
To test the horizontal insert shift of the address and window, do the following:
 Tap the mailpiece separately on its left and right edges to jog the insert as far to the left and
right as it can go.
 As each side is tapped, check that a clear space of at least 1/8” is still maintained between
the left and right edges of the address and the left and right window edges.
Barcode/Window Clearance
As with addresses, Intelligent Mail barcodes printed on inserts—including barcodes printed as
the top or bottom line of the delivery address block—must maintain the following minimum
clearances.
 At least 1/8” from the left and right edges of the bar code and the edges of the window
when the insert is moved in those directions.
 At least 1/25” from the top and bottom edges of the window opening when the insert is
moved in those directions. This 1/25” minimum clearance is also needed between the top
and bottom of the barcode and any other printing.
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Vertical Barcode Insert Shift Test
To test the vertical insert shift of the barcode and window, do the following:
 If the barcode is the top line of the address block, check that a clear space of at least 1/25”
is maintained between the top of the barcode and the top edge of the window without
tapping the mailpiece.
 Tap the mailpiece on a flat horizontal surface on its bottom edge to jog the insert as far
down into the envelope as it can go. Check that a clear space of at least 1/25” is still
maintained between the last line of the address and the bottom edge of window.
 If the barcode is the bottom line of the address block, check that a clear space of at least
1/25” is still maintained between the bottom of the barcode and the bottom edge of the
window after tapping.
Horizontal Barcode Insert Shift Test
To test the horizontal insert shift of the barcode and window, do the following:
 Tap the mailpiece separately on its left and right edges to jog the insert as far to the left and
right as it can go.
 As each side is tapped, check that a clear space of at least 1/8” is still maintained between
the left and right edges of the barcode and left and right window edges.
Excessive Barcode Insert Shift
Insert Material – Like envelope paper, insert material must have sufficient opacity to prevent
any printing on the inside of the mailpiece from showing through in the MLOCR read area or in
the barcode clear zone.
Window Coverings – Open or covered windows may be used for addresses and address block
barcodes. Windows must always be covered in automation-rate mailings of pieces that weigh
more than 3 ounces.
Material for covered windows must be clear or transparent (low-gloss polyclear materials are
best) and securely attached on all edges. Cellophane, glassine, and polystyrene are acceptable
materials. All window coverings must be stretched tight and be free of wrinkles, streaks, fogging,
colors, and other conditions that can obscure the address or barcode during processing.
All address and barcode information, as read through the window, must satisfy the following
minimum reflectance and contrast guidelines:
 A print contrast ratio (PCR) equal to or more than 40 percent in the red and green portions
of the optical spectrum is necessary for an MLOCR to recognize address information.
 A print reflectance difference (PRD) equal to or more than 30 percent in the red and the
green portions of the optical spectrum is necessary for a BCS to recognize IMb’s.
Because glassine is somewhat opaque (less transparent) compared with other window-covering
materials, addresses read through glassine must produce a slightly higher PCR of 45 percent.
The minimum PRD for barcodes read through glassine is 30 percent—the same minimum
required for other window-covering material.
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Window Clear Space – Address windows should be no lower than ½” from the bottom edge of
the envelope and may extend 1/8” into the bar code clear zone.
 NCOALink MPE – In mailings of First-Class Mail and Standard Mail, any envelope whose
window intrudes into the bar code clear zone is not eligible for NCOALink MPE processing to
meet the move update standard. Check with your local mailpiece design analyst or business
mail entry unit for more guidelines.
Barcode/Label Clearance
The following minimum clearances for the IMb, when applied to address labels, are the same as
the clearances required for barcoded inserts in window envelopes.
 At least 1/8” between the left and right of the bar code and the left and right edges of the
label or other printing.
 At least 1/25” between the top and bottom of the bar code and the top and bottom edges
of the label or other printing.
Address Labels
Automation Addressing General Standards: For successful processing and delivery point
barcoding by MLOCRs, the addresses on letter mail should be machine-printed, with a uniform
left margin, and formatted in such a way that an MLOCR will be able to recognize the
information and find a match in its address files.
A complete address is required so that an MLOCR can delivery point barcode the piece for the
most precise point of delivery. In this way, you greatly improve the deliverability of your
mailpiece. An MLOCR and the ZIP+4 database are better able to identify the correct delivery
address the first time that the mailpiece is processed.
For faster, more accurate processing, include in the delivery address the street designators (for
example, BLVD or DR); Pre or Post directionals (for example, NE or SW); the apartment, suite, or
room number; and the ZIP+4 code.
MLOCRs can read a combination of uppercase and lowercase characters in addresses. Even
though MLOCR enhancements now allow effective reading of punctuation in addresses, it still is
suggested that punctuation be omitted when possible. Whether or not punctuation is included
in the address, the ZIP+4 code format is five digits, a hyphen, and four digits (for example,
12345-6789). The code eliminates guesswork about the intended destination.
For automation rates, the Postal Service requires mailers to prepare their mailings with
addresses that have been verified and corrected using CASS-certified address matching software
or processes.
For assistance with mailpiece design questions and review of your mailpieces, please contact a
Mailpiece Design Analyst by calling the MDA Support Center at 855-593-6093 or sending an
email to [email protected]. The MDA Support Center hours of operation are Monday through
Friday, between 7:00 am and 5:00 pm CST.
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Address Block Location
Letter-size automation specifications are as follows:
 The MLOCR read area requires only ½” margins on the left and right sides.
 The entire address (except the optional lines above the recipient line) should appear within
an imaginary rectangle that extends from 5/8” to 2 ¾” inches from the bottom edge of the
mailpiece, with ½” margins on the left and right sides. This is the requirement for any lettersize mailpiece.
 For pieces longer than 10 ½”, the address should begin no more than 9 ¾”” from the right
edge.
Mailpiece Clear Zones and Free Space
The following illustration shows all the reserved areas or clear zones where content is restricted.
The Multiline Optical Character Reader (MLOCR) read area is the area required for displaying the
delivery address block for a letter size mailpiece measuring up to 10 ½“ long.
The diagram below includes mailpiece clear zones for pieces measuring more than 10 ½” long.
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Extraneous (non-address) printing in the MLOCR read area can confuse MLOCR scanners and
prevent them from interpreting the address information correctly. This can cause them to reject
the mailpiece. Non-address printing such as company logos, advertising, and die cuts should not
be placed within the MLOCR read area. If it is, the lowest point must be above the delivery
address line. In other words, within the MLOCR read area, you should keep the space on either
side of and below the delivery address line clear of all printing.
Non-address Printing Space (unshaded Area)
Return Address – You should always keep the MLOCR read area clear of return address
information. In addition to being positioned at least 2 ¾” above the bottom edge of the
mailpiece, the return address should occupy an area in the far upper left corner of the mailpiece
no longer than 50 percent of the length of the mailpiece. The return address should be printed
in a type size smaller than the type size used in the delivery address.
Barcode Clear Zone – After reading the address, the MLOCR prints the appropriate delivery
point barcode in the lower right corner of the mailpiece. This area, known as the Barcode Clear
Zone, extends 5/8” inch from the bottom and 4 ¾” long from the bottom right corner. To
ensure that the barcode is readable by barcode sorters, the barcode clear zone must be clear of
all printing, markings, graphics, and colored borders. Certain types of coated paper should be
avoided.
Printing Guidelines
Type Style – Some type styles (also known as typefaces) have serifs, which are short lines that
decorate the ends of letter strokes. Because typefaces that have no serifs (called "sans serif"
faces) are more easily read by MLOCRs, these styles are recommended for printing the delivery
address.
Display Type – Typefaces (like Helvetica) with specific characteristics (like Helvetica normal 12
point) are called fonts. Dot matrix characters can be read by MLOCRs if the dots that form each
character touch one another or are not separated by more than 0.005”.
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Unacceptable Type Styles:
Bold
Italic
Extended
Stylized
Condensed
Script
Type Sizes – MLOCRs can recognize type sizes between 8 and 18 points. A point is a printing unit
equal to about 1/72”. The following point sizes are recommended for maximum MLOCR
recognition:
 8 Points (Minimum)
 10 Points (Preferred)
 12 Points (Preferred)
 18 Points (Maximum)
If you use type as small as 8 points for an address, you should print the address in all uppercase
characters to satisfy the MLOCR's minimum height and width requirements. In some type styles,
8-point uppercase characters do not meet the minimum 0.080” height requirements of MLOCRs.
If you use 18-point type, you should check that the characters are not taller than the maximum
size shown on Notice 67, Automation Template. Some styles of 18-point type are larger than
others.
Address Block Skew
If the address block is
slanted too much, the
MLOCR might not be
able to see a clear
vertical space between
each character. For this
reason, the address
should not be slanted
(or skewed) more than
5 degrees relative to
the bottom edge of the
mailpiece. This standard is especially important for the proper application of address labels.
Interfering Print – You should avoid using preprinted forms, labels, or inserts containing lines
(such as dotted rules for address placement), outline boxes (such as borders for address
placement), or prompting words (such as "TO:") in the address area. These non-address
elements can interfere with MLOCR recognition of the delivery address.
Print Quality – Print quality is one of the most important factors for successful MLOCR
processing. Address characters should be clean, sharp, dark, and uniformly printed. Smudges,
fill-ins, voids (inking gaps within characters), and splatter (extraneous ink outside character
boundaries) can adversely affect MLOCR processing. The printer, typewriter, or ink jet printer
should be checked and cleaned often to ensure crisp, clear printing.
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Reflectance and Print Contrast – The ability of paper to reflect light is also an important factor
for MLOCR recognition. The surface containing the address—whether an envelope, card, label,
or insert—should be light enough in color to reflect a sufficient amount of light to the MLOCR's
scanner.
Although a white background is preferred, pastels and many other light colors are acceptable.
You can check background reflectance with a USPS envelope reflectance meter or its equivalent.
A reading of at least 50 percent in the red portion and 45 percent in the green portion of the
optical spectrum is desirable.
Paper stocks used for envelopes and cards—as well as inks used for addresses and any other
printing on the outside of letter-size mail—should not be fluorescent or phosphorescent. The
glow from such paper stocks and inks can cause malfunctions during mail processing.
For window envelopes and labels, the MLOCR works best if the reflectance of the insert or label
is about the same as that of the envelope. Some envelope inserts (checks, for example) are
printed with a background pattern that can confuse the MLOCR. Designs and printing in the
background might appear attractive to the human eye, but they can be mistaken for part of the
address information by the MLOCR.
For the greatest contrast and best performance on MLOCRs and BCSs, the address should be
printed in black ink on a white background. Several color combinations are also acceptable if the
ink is dark enough and the background is light enough.
Resolve any issues about print, design, and color with your mailpiece design analyst before you
produce your mailpiece. We can work with you to design an effective mailpiece and ensure
quality processing.
Print Contrast Ratio (PCR) is the contrast between the background and the printed address
characters. This contrast can be measured with a USPS envelope reflectance meter or its
equivalent.
A PCR of at least 40 percent in both the red and the green portions of the optical spectrum is
needed. Reverse printing (white or light-colored characters on a dark background) is not
MLOCR-readable and therefore not acceptable. The inks used for addresses—and any other
printing on the outside of letter-size mail—should not be fluorescent or phosphorescent. The
glow from such inks can cause malfunctions during mail processing operations.
Background patterns that appear solid to the human eye but are printed in a halftone screen
can interrupt MLOCR recognition. The dot structure in halftone screenings should be at least
200 dots (or at least 100 pairs of lines) per inch or at least a 20 percent screen (dot size). Other
background patterns with a PCR greater than 15 percent in the red and the green portions of
the optical spectrum should not be used in the MLOCR read area.
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Barcodes
Barcoding is also an important aspect of mailpiece design. Because there are no MLOCR
readability requirements for barcodes, you have more latitude in selecting colors, type styles,
and the location for address printing if you barcode your mail. To receive automation discounts,
your letter-size mailings must be 100 percent delivery point barcoded with an IMb.
Nonbarcoded pieces enter the same mail stream as a nonautomation presorted mailing.
Intelligent Mail barcode (IMb)
In 2003, the United States Postal Service (USPS) published the Intelligent Mail Corporate Plan.
This plan identified several key strategies including:
 Uniquely Identify Mail and Mail Aggregates
 Develop and Deploy an Enabling Infrastructure
 Enhance Address Quality
This plan provided the following vision: “To capitalize on the value of information about mail,
the Postal Service and its customers will place an information-rich code on all mail, aggregates
of mail, and business forms, enabling end-to-end visibility into the mail stream.
In support of this OneCode Vision, the Postal Service, in partnership with the mailing industry,
developed the Intelligent Mail barcode (IMb) (formally known as the 4-state Customer Barcode).
It is the next generation in the evolution of Postal Service barcode technology. It offers a more
effective alternative to existing barcodes by increasing the amount of information that is
present on letter and flat mailpieces, allowing for expanded tracking capability, and creating
greater visibility into the mail stream. OneCode Confirm is a free service to Full-Service IMb
mailers.
The IMb is a height-modulated barcode that encodes up to 31-digit string of mailpiece data into
65 vertical bars. These bars may be present in one of four possible states: full bar, ascender,
tracker, and descender.
The IMb is slightly longer than the retired 11-digit POSTNET barcode, and it offers mailers
certain flexibility in choosing the height and width of the barcode. Due to mailpiece real estate
concerns and barcode print quality, some mailers expressed an interest in a shorter-height IMb.
Evaluations were conducted with letter mail that allowed the Postal Service to reduce the height
requirement by 16.3% for the September 2006 offering. Consequently, the read-rate and
dimension analysis supported by an extensive flats test was used as a decision-making tool in
determining the feasibility of a revised IMb with further reduced vertical dimensions. As a result
of this, in July 2007, the Postal Service published a new Specification for the IMb with even
shorter bar heights with the full bar ranging in height between 0.125” and 0.165”.
The IMb is used to sort and track letters and flats. Unlike the retired POSTNET barcode that only
contained the delivery point ZIP Code, the IMb contains additional fields like the Service Type
Indicator, Sequence Number and Mailer ID which expands your ability to track individual pieces
and provides greater visibility into the mail stream. With the IMb, you can request services like
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tracking and address correction all in one barcode. The IMb allows you to number your mail so
that you can uniquely identify each mail piece in your mailing. It contains a Mailer ID Field that
allows you to obtain data about your mailings.
The USPS began requiring the use of the IMb for automated discounts effective January 2013
with intent to achieve the following initiatives:
 Continue earning lowest postal rates
 Better customer intelligence
 Free Address Change Service
 Visibility into the mail stream/Tracking
 More effective returned mail processing
 Better scan rates and improved deliverability
 Better looking mail pieces (fewer barcodes)
 Delivery Confirmation
 Access to new services
Intelligent Mail barcodes facilitate feedback about the mailpiece, handling units and containers,
and allows for USPS service performance measurement, making it possible to use the mail in a
much smarter, more efficient manner. The use of Basic or Full-Service IMb is required to qualify
for automation prices for First-Class Mail postcards, letters, and flats, Standard Mail letters and
flats, Periodicals letters and flats and Bound Printed Matter flats.
Barcode Placement – If you apply an IMb to your outgoing letter mail, you may print the
barcode in the lower right corner or as part of the address block. MLOCR-applied barcodes are
always printed in the lower right corner of the mailpiece.
Address Block Barcoding – With this method, the barcode is not subject to the strict positioning
requirements of the barcode clear zone. The address block barcoding option is the most
desirable method of choice. If you desire printing the IMb as part of the address block, you must
locate the barcode within the Address Block Barcode Read Area, as illustrated below.
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Barcode Clearances - An address block barcode requires certain clearances relative to any
printing and the edges of the window or address label. This allows the barcode sorter to
successfully locate the barcode. A clear space of 1/25” is required above and below the barcode
and 1/8” is required to the left and the right of the barcode.
You may not apply the IMb anywhere between the recipient line and the city, state, and ZIP
Code line of the address (that is, do not place the barcode between any lines of the delivery
address).
Conventional Lower Right Corner – Delivery point barcodes printed in the lower right corner of
letter mail must be positioned to meet specifications. The first (leftmost) bar of the barcode
should appear between 3 ½” and 4 ¼” from the right edge of the mailpiece.
Barcode Printing & Background Reflectance – The area of the mailpiece where the barcode is to
be placed (address block or lower right corner) should be uniform in color and produce a
minimum reflectance of 50 percent in the red portion and 45 percent in the green portion of the
optical spectrum, when measured with a USPS envelope reflectance meter or its equivalent.
Although a white background is preferred, pastels and other light colors are acceptable. The
mailpiece should not be fluorescent or phosphorescent because the glow can cause
malfunctions during mail processing.
Print Reflectance Difference – The BCS responds to the difference between light reflected from
the printed barcode and the background. This difference is defined as print reflectance
difference (PRD). A PRD of at least 30 percent in the red and the green portions of the optical
spectrum is necessary for reading IMb’s. As with MLOCRs, BCSs respond best when the barcode
is printed in black ink on a white background. Other color combinations are acceptable if the
minimum PRD of 30 percent exists for the printed barcode. Refer questionable color
combinations to your mailpiece design analyst for testing.
Application – IMb’s can be applied by the mailer, presort house, or by the Postal Service.
Mailers would apply an IMb as their address is created by their addressing software. Presort
houses will apply the IMb when they process and sort mail. The Postal Service can apply the
IMb either in the pre-process or post-processing stages of mail processing.
Assistance – Postal Service Mailpiece Design Analysts (MDAs) and others in business mail
acceptance can help you meet USPS guidelines and determine the automation compatibility and
readability of your mailpieces. Also, many companies employ specialists to provide this service
to their companies. MDAs also take a more proactive approach: they'll help you create the
mailpiece from the beginning of the design process. These analysts have a thorough
understanding of all postal automated processing equipment and mailpiece design standards.
Account Managers and postal business center personnel also can help you with these guidelines
and answer your questions about postage discounts for automation-compatible mail.
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Decoding the Intelligent Mail Barcode
There are two formats of the Intelligent Mail barcode. The format you use depends upon the
Mailer ID assigned to you by the USPS.
Barcode ID – The barcode identifier is a 2-digit field that is reserved to specify the presort
makeup. If you currently do not use an Optional Endorsement Line, you will simply populate this
field with “00”.
Service Type Identifier – Used to request special services such as tracking or address correction.
If you are not requesting special services on the mail piece, you should use one of the following
codes depending upon the class of mail to which the IMb is applied: 700 for First-Class Mail; 702
for Standard mail; 704 for Periodicals; 706 Bound Printed Matter.
Mailer ID (MID) – This is an ID that the USPS will assign to you to use in your Intelligent Mail
barcodes. The USPS will issue you a 9-digit or a 6-digit Mailer ID based on your mail volume.
Mailer IDs are obtained by making a request from the subscription process helpdesk supporting
your product or service. Subscribers of OneCode Confirm should call 800-238-3150 and
Confirmation and Extra Services customers should call 877-264-9693. OneCode ACS subscribers
should call 800-331-5746. Customers participating in USPS testing initiatives or have an
immediate need for using the Mailer ID should contact the PostalOne! Help Desk at 800-5229085.
Sequence or Serial Number – You can use this field to uniquely identify your individual mail
pieces. If you are assigned a 9-digit MID, you will have 6-digits to identify and number your
mailpieces. If you are assigned a 6-digit MID, you will have 9 digits to identify and number your
mail pieces.
Delivery Point ZIP Code – Populate this field with delivery point ZIP Code of the mail piece.
Full-Service Automation Option – Access to full-service automation option benefits requires the
use of an IMb to uniquely identify each mailpiece. In addition to the automation standards, all
pieces entered under the full-service option must individually meet the automation
requirements for automation prices according to their class and shape.
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First-Class Mail, Periodicals, and Standard Mail letters, as well as flats and Bound Printed Matter
flats meeting eligibility requirements for automation or carrier route prices, except for Standard
Mail ECR saturation flats or Standard Mail ECR letters paying ECR flats prices, are eligible for the
full-service automation option.
All pieces entered under the full-service automation option must:
 Bear a unique Intelligent Mail barcode.
 Be part of a mailing using unique Intelligent Mail tray labels on all trays and sacks.
 Be part of a mailing using unique Intelligent Mail container barcodes on all destination-entry
pallets and other containers prepared under 8.0 or as part of a customer/supplier
agreement.
 A customer/supplier agreement is authorized with a service agreement and signed by the
mailer, the USPS District Manager, Customer Service, and the USPS Processing and
Distribution Center Manager.
 The service agreement contains provisions regarding mailer and USPS responsibilities.
 Be part of a mailing using an approved electronic method to transmit a postage statement
and mailing documentation to the PostalOne! system.
 Be scheduled for an appointment through the Facility Access and Shipment Tracking (FAST)
system when deposited as a DBMC, DADC, or DSCF drop-shipment.
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5 Extra Services
Extra services are enhancements that, for a fee in addition to postage, provide greater security
and accountability for mail, convenience to the sender, or improved handling. Extra services are
not available with Periodicals. Not all extra services are available for all classes of mail, and only
certain services may be combined for the same mailpiece.
Certificate of Mailing provides evidence of mailing and this official record shows the date mail
was accepted. Certificates of mailing furnish evidence of mailing only. May be combined with
Parcel Airlift Services (PAL), and Special Handling. Note: Form 3817 for individual pieces only;
Form 3606 for identical weight mailings only or a USPS-approved facsimile must be used.
Certificate of mailing is only available at the Postal Service. The Postal Service does not keep a
copy.
Certificate of Mailing is compatible with:
 Priority Mail
 First-Class Mail
 First-Class Package Service
 Parcel Select *
 Parcel Select Lightweight *
 Standard Mail *
 Bound Printed Matter
 Library Mail
 Media Mail
* Form 3606 only
Certified Mail – Find out when your item was delivered or delivery was attempted. Requires the
signature of the recipient. Can be purchased online or at the Postal Service. Present for mailing
to a Postal Service employee to get a postmarked mailing receipt. Combine with a Return
Receipt to see the signature of the person who accepts the package.
Certified Mail is compatible with:
 Priority Mail
 First-Class Mail
 First-Class Mail Package Service
Additional Combined Services:
 Return Receipt 1
 Restricted Delivery 1
 Adult Signature Required 2
 Adult Signature Restricted Delivery 2
 Not available with Adult Signature
 With Priority Mail only
1 Not available w/Adult Signature
2 With Priority Mail only
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Collect on Delivery (COD) – The Postal Service collects from the recipient the postage and price
of an item that had not been prepaid and provides the amount collected to the mailer, not to
exceed $1,000. Can be purchased online or at the Postal Service. COD pieces must be presented
to a Postal Service employee.
COD is compatible with:

Priority Mail Express (1-Day and 2-Day only)
 Priority Mail
 First-Class Mail
 Standard Post
 Parcel Select
 Bound Printed Matter
 Library Mail
 Media Mail
Additional Combined Services:
 USPS Tracking*
 Insurance
 Registered Mail
 Returned Receipt
 Signature Confirmation*
 Special Handling
 Hold for Pickup (under 508.7.0)
* Not available with Priority Mail Express COD.
Restricted Delivery – Directs delivery only to addressee or addressee's authorized agent. Can
be purchased online or at Post Office depending upon the class of mail chosen.
Restricted Delivery is compatible with:
 Priority Mail 1
 First-Class Mail 1
 First-Class Package Service 1
 Standard Mail (parcels only) 2
 Standard Post 3
 Parcel Select 3
 Parcel Select Lightweight 2
 Bound Printed Matter 3
 Library Mail 3
 Media Mail 3
1 If purchased with Certified Mail, COD, insurance over $200.00 or Registered Mail.
2 If purchased with bulk insurance over $200.00.
3 If purchased with COD or insurance over $200.00.
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Additional Combined Services:
 USPS Tracking
 Signature Confirmation
 Parcel Airlift (PAL)
HOLD FOR PICKUP
Customers can pick up valuable and perishable merchandise at a designated Post Office.
Packages can be picked up within 15 days depending on product selected (5 days for Priority
Mail Express).
HOLD FOR PICKUP is compatible with:
 Priority Mail Express
 Priority Mail (commercial mailings)
 First Class Package Service parcels
 Parcel Select parcels
USPS Tracking
Get tracking updates, including the date and time of delivery or attempted delivery using the
USPS Track & Confirm tool. Can be purchased online or at the Post Office depending on the class
of mail selected Provides tracking updates as an item travels to its’ destination.
USPS Tracking is compatible with:
 Priority Mail 1
 Priority Mail-Critical Mail 1
 First-Class Mail (parcels only) 3
 First-Class Package Service 1, 2
 Standard Post 1
 Bound Printed Matter
 Library Mail
 Media Mail
 Standard Mail (parcels only) 2
 Parcel Select
1 Included at no additional charge.
2 Electronic option only.
3 Included at no additional charge for electronic option.
Additional Combined Services:
 Insurance
 COD
 Registered Mail
 Restricted Delivery*
 Return Receipt*
 Return Receipt for Merchandise
 Special Handling
* If purchased with Insurance over $200, COD or Registered Mail.
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Insurance – Items can be insured against loss or damage. The price is based on declared value
of the item up to $5,000.00.
Insurance is compatible with:
 Priority Mail Express
 Priority Mail (must bear a tracking barcode to qualify for the included insurance)
 Priority Mail – Critical Mail
 First-Class Mail
 First Class Package Service
 Standard Post
 Media Mail
 Bound Printed Matter
 Library Mail
 Parcel Select
 Parcel Select Lightweight (Bulk insurance only)
 Standard Mail – Parcels only(Bulk insurance only)
Additional Combined Services:
 USPS Tracking
 Special Handling
 Signature Confirmation
 Adult Signature Required
 Adult Signature Restricted Delivery
 Restricted Delivery (if insured for $200 or more)
 Return Receipt for Merchandise (if insured for $200 or less)
 Return Receipt (if insured for $200 or more)
 Parcel Airlift (PAL) see 703.2.0
Special Note: $100 of insurance is included in Priority Mail Express service. Purchase online, at
your Post Office, or a self-service kiosk, depending on the class of mail chosen. Keep your
postmarked mailing receipt. $50 insurance is included in Priority Mail service. Additional
coverage may be available. Available only for certain products and to certain destinations.
Registered Mail – Is the most secure service offered by the Postal Service. Provides sender with
a written mailing receipt and an optional delivery record is maintained by the USPS. A record of
mailing is maintained at the mailing Post Office. Insurance is not available for items with no
value. Insurance is provided and included for an additional fee, which is based on the value of
the piece, to a maximum liability of $25,000. Additional handling charges apply for articles
valued over $25,000. Registered Mail must be presented to a retail employee at a Post Office or
a rural carrier. This service can be purchased online, at the Postal Service, or through a rural
carrier. Registered Mail must bear the bar-coded red Label 200 (see forms at http://pe.usps.gov/),
or a non-barcoded red Label 200-N when a mailer-generated shipping label bearing an
Intelligent Mail package barcode (IMpb), is also affixed on the same mailpiece.
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Registered Mail is compatible with:
 Priority Mail
 First-Class Mail
 First Class Package Service
Additional Combined Services:
 COD
 USPS Tracking
 Signature Confirmation
 Restricted Delivery
 Returned Receipt
Adult Signature is a new extra service that will provide a method for mailers to obtain a
signature (upon delivery) from an adult recipient who is 21 years of age or older. Mailers will
get delivery information, as well as the recipient’s signature and name.
Adult Signature Restricted Delivery – With this service, articles are delivered only after the
addressee or their authorized agent verifies their identity, proves that they are 21 years of age
or older, and signs for it.
Note: Adult Signature services are not available for purchase at the Postal Service. Add this
service to a qualifying online label purchase.
Adult Signature services are compatible with:
 Priority Mail Express
 Priority Mail
 Priority Mail – Critical Mail
 Parcel Select Nonpresort
Additional Combined Services:
 Certified Mail Insurance (w/Priority Mail only)
 Return Receipt (w/Priority Mail Express, Priority Mail and Critical Mail only <Form 3811>)
Return Receipt service provides a mailer with evidence of delivery (to whom the mail was
delivered and date of delivery), and information about the recipient’s actual delivery address. A
mailer purchasing a return receipt at the time of mailing may choose to receive the return
receipt by mail (Form 3811) or electronically (by email, or by signature extract file format under
7.0). A mailer purchasing a return receipt after mailing will receive the proof of delivery record
by email (electronic signature data) or by mail (Form 3811-A). A complete return address is
required on the mailpiece when a return receipt is requested. For Priority Mail Express (Form
3811 option only), the return address on the Priority Mail Express label meets this requirement.
At this time, electronic Return Receipts are not accepted by all court jurisdictions.
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Return Receipt is compatible with:
 Priority Mail Express (Form 3811 only)
 Priority Mail 1
 First-Class Mail 1
 First-Class Package Service 1
 Standard Mail (parcels only) 2
 Parcel Select 3
 Parcel Select Lightweight 2
 Standard Post 3
 Bound Printed Matter 3
 Library Mail 3
 Media Mail 3
1. If purchased with Certified Mail, COD, insurance over $200.00 or Registered Mail.
2. If purchased with bulk insurance over $200.00.
3. If purchased with COD or insurance over $200.00.
Return Receipt for Merchandise provides sender with a mailing receipt (Form 3804) and a
a return receipt (Form 3811) (see forms at http://pe.usps.gov/). After delivery, the return
receipt is mailed back to the sender and also supplies the recipient’s actual delivery address if it
is different from the address used by the sender. A delivery record is maintained by the USPS,
but no record is kept at the office of mailing. A return receipt for merchandise may not be
requested after mailing, and restricted delivery is not available. A mailer who does not receive
return receipt for merchandise service for which the mailer has paid may request delivery
information at no additional charge, by using Form 3811-A; filed within two years after the date
of mailing.
Return Receipt for Merchandise is compatible with:
 Priority Mail
 Standard Mail (machinable and irregular parcels only)
 Parcel Select
 Standard Post
 Bound Printed Matter
 Library Mail
 Media Mail
Additional Combined Services:
 USPS Tracking
 Insurance (If insured for $200.00 or less)
 Special Handling
 Parcel Airlift (PAL) (see 703.2.0)
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Signature Confirmation provides additional security by requiring a signature. Shows the date
and time of delivery or attempted delivery. Can be purchased online or at the Postal Service
depending on the class of mail chosen. Not available to APO/FPO/DPO locations.
Signature Confirmation is compatible with:
 Priority Mail
 Priority Mail – Critical Mail
 First-Class Mail (Parcels only) (Electronic option only)
 Standard Post
 First Class Package Service (Electronic option only)
 Parcel Select
 Media Mail
 Bound Printed Matter
 Library Mail
Additional Combined Services:
 Insurance
 COD
 Registered Mail
 Special Handling
 Restricted Delivery (Not available for purchase w/Priority Mail Express COD)
 Return Receipt (Form 3811 only) (Not available for purchase w/Priority Mail Express COD)
Special Handling
Provides preferential handling, if sending unusual shipments—live poultry, bees, or other
mailable contents that need extra care. Does not include preferential delivery, to the extent
practicable in dispatch and transportation. Can be purchased online or at the Postal Service
depending on the class of mail chosen. Articles must be presented to a Postal Service employee.
Special Handling is compatible with:
 Priority Mail
 First-Class Mail
 Standard Post (retail only)
 First Class Package Service
 Parcel Select
 Media Mail
 Bound Printed Matter
 Library Mail
Additional Combined Services:
 USPS Tracking
 COD
 Insurance
 Return Receipt for Merchandise
 Signature Confirmation
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6 Ancillary Endorsements
Ancillary Service Endorsements (ASE’s) are used by mailers to request an addressee’s new
address and to provide the USPS with instructions on how to handle undeliverable-as-addressed
pieces. The endorsements consist of one keyword: “Electronic,” “Address,” “Return,” “Change,”
or “Forwarding,” followed by the two words “Service Requested.” The endorsements are the
same for all classes of mail, but the treatment and cost differ by class of mail.
Use of an ancillary service endorsement on a mailpiece obligates the mailer to pay any
applicable charges for forwarding, return, and separate address notification charges. A mailer
endorsement is used to instruct the Postal Service regarding the mailpiece's appropriate
disposition upon determining that it is Undeliverable As Addressed (UAA).
In all cases, mailpiece is directed to a Computerized Forwarding System (CFS) or Postal
Automated Redirection System (PARS) site for processing. "Address Service Requested" and
"Change Service Requested" handling instructions and options are required to be predefined
within the ACS mailer profile data.
Proper placement of the endorsement is required. If the endorsement cannot be seen or
understood, you might not receive the service requested. A return address must be used and
placed in the upper left corner of the address side of the mailpiece or the upper left corner of
the addressing area. If a return address is a multiple delivery address, it must show a unit
designation (e.g., apartment number).
ASE’s may be encoded into the IMb, but mailpiece must also include a printed endorsement on
Standard Mail pieces. The "Electronic Service Requested" ancillary service endorsement is
available for participants of ACS or OneCode ACS (used with mailpieces bearing an IMb).
Information about Traditional ACS and OneCode ACS is located in Publication 8a, Address
Change Service. OneCode ACS mailers are also required to insert this service request through a
valid service type code in an Intelligent Mail barcode. The service type code in the Intelligent
Mail bar-code will take precedence over the instructions in the mailer account profile.
The endorsement or, if combined, endorsements must meet the following physical standards:
 The type size of the endorsement must be at least 8 points.
 The read direction of the endorsement and return address must be the same as the read
direction of the delivery address.
 The color contrast between the endorsement and the mailpiece background must be kept at
a reasonable degree. A brilliant colored background or reverse printing is not permitted.
 A clear space of at least 1/4 inch around (above, below, and both sides) the total area
containing the endorsement(s) is required. This 1/4-inch clear space is not required for an
endorsement that is applied with a multiline optical character reader (MLOCR) inkjet and
placed in the location directly below the postage area and any price marking if the
endorsement is clear and legible.
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Ancillary Service Endorsements must be placed in one of four positions on a mailpiece:
1. directly below the return address
2. directly above the delivery address block
3. directly to the left of the postage area and below or to the left of any price marketing
4. directly below the postage area and below any price marking
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7 Remittance Mail
If your business receives most of its orders and payments by mail, your business depends
financially on its incoming mail. Orders and payments are usually a response to a mailing to
customers, which is why these responses are called reply mail.
There are three basic types of remittance mail:
 Business Reply Mail
 Courtesy Reply Mail
 Meter Reply Mail
Business Reply Mail and Courtesy Reply Mail are the most used and similar in style however,
there is a significant difference.
Reply mail offers two major advantages:
 faster response
 more accurate delivery
The easier you make it for your customer to respond, the quicker the return will come. A
preaddressed (and perhaps postage-paid) envelope containing the customer's order or check is
easy to mail. Customers have positive attitudes about creditors, marketers, and fund-raisers
who show foresight and consideration by providing reply mail cards, envelopes, or labels. When
designing remittance mail or return label, mailers must consult with their local Postal Service.
The returning piece must conform to a specific format to qualify, including a unique ZIP+4 Code
and an equivalent IMb assigned by the USPS. All Reply Mail Proofs should be approved by the
USPS before printing. Proofs for Qualified Business Reply Mail (QBRM) must be approved by the
USPS.
Caution: you must be assigned and know your unique ZIP+4 Code and a permit number to
proceed. You will also need to create and import the corresponding barcode for your ZIP+4 Code
bar codes. They are created and obtained using the newly enhanced Automated Business Reply
Mail (ABRM) tool. ABRM is a web-based, self-service tool created to assist Reply Mail customers
to produce domestic CRM, BRM, and QBRM artwork for card and letter-size mailpieces. You can
access the ABRM site at https://www.usps.com/business/reply-mail-solutions.htm. The tool is
available 24 hours a day, 7 days a week. For additional information, please reference the ABRM
Tool brochure or contact the MDA Support Center at 855-593-6093.
Business Reply Mail
Business Reply Mail (BRM) requires that postage be paid by you (the sender) if your customer
(the respondent) mails the reply back to you. BRM is appropriate when your customer needs a
little extra inducement to reply—in other words, the response or its timing is not assured.
BRM’s are frequently used by direct marketers seeking orders, researchers pursuing
questionnaire responses, or magazine publishers soliciting subscriptions. The extra inducement
is provided because your customer does not need to affix the return postage, does not have to
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supply a postcard or envelope, and does not need to put an address on the mail piece. This
many times can improve response rates by up to 60% or more!
BRM enables you to receive First-Class Mail back from customers while paying postage only on
the pieces that your customers return. You may distribute cards, envelopes, self-mailers, and
other types of mail pieces as BRM.
Business Reply Mail Formats and Design Standards
BRM Size Standards - Physical Characteristics
BRM
Card
Card Maximum Letter Minimum
(1)
Dimension
Minimum
Height
3–1/2 inches
4-1/4 inches
3–1/2 inches
Length (2)
5 inches
6 inches
5 inches
Thickness
0.007 inches
0.016 inches
0.007 (3) inches
Letter
Maximum
6-1/8 inches
11-1/2 inches
1/4 inches
(1) These are the maximum dimensions for card-rate eligibility.
(2) BRM letter pieces should not be less than 0.009 inch thick if they are more than 4 1/4 inches high or 6 inches long
or both. (The dimension that parallels the lines of the delivery address is the length. The top and bottom of the mail
piece also parallel the delivery address lines.)
(3) The minimum thickness is 0.009 inch if the length is more than 6 inches or the height is more than 4-1/4 inches.
It is recommended that you use the USPS ABRAM tool to create your artwork. To make sure that
your mail piece achieves the best quality, provide printed samples of your BRM pieces to your
MDA in the design process, allowing time for changes before printing.
The example below includes the proper design elements for BRM:
An IMb can be printed as part of the delivery
address block or inside the barcode clear zone.
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BRM Postcards must
meet
the
design
standards for First-Class
Mail
postcards.
All
postcards larger than 41/4” X 6” must be at
least .009” thick.
BRM Labels are for general
use; measuring 2” high and
3” long. BRM labels are not
required to have a FIM or a
ZIP+4 barcode, but all other
format standards must be
met.
Requirements for labels on letter-size BRM:
 Minimum size on a letter-size piece is 2-5/8” high and 4-1/4” long.
 BRM labels cannot include a barcode.
 All formats elements, including a FIM, must be printed on the label (exception: the vertical
series of horizontal bars must be at least ¾” high).
 The back of the label must be coated with a permanent adhesive strong enough to firmly
attach the label to an envelope.
 The permit holder must provide instructions to the user describing how the label should be
applied to the mailpiece.
 Pieces bearing BRM labels DO NOT qualify for QBRM prices.
Note: Mailpieces using BRM envelope as a label are treated as waste.
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Facing Identification Marks
The facing identification mark (FIM) is a pattern of vertical bars printed in the upper right
portion of a mail piece, to the left of the postage area. The FIM uses a code that tells automated
processing equipment some of what it needs to know to do its job. The FIM allows automatic
facing (orientation) of the mail for cancellation (postmarking). The FIM also identifies reply mail
that bears a preprinted barcode. Bar coded mail is then routed directly to a high-speed barcode
sorter, bypassing slower manual sorting or optical character reader (OCR) processing.
Determine which FIM to use as follows:
 FIM A is used for CRM and MRM with a preprinted bar code.
 FIM B is used for BRM without a preprinted BRM ZIP+4 Code.
 FIM C is used for BRM with a preprinted BRM ZIP+4 Code.
 FIM D is used only with information based indicia (IBI) postage.
 Flat-size BRM pieces do not require a FIM.
Obtaining FIMs and Barcodes – It is not necessary to design a FIM or a barcode yourself for your
reply mail. The Postal Service provides, at no charge, camera-ready artwork of the FIM, and
camera-ready artwork for the barcode representing the correct ZIP+4 code and IMb as
appropriate for your reply mail address. This can be done by using the USPS on line enhanced
Automated Business Reply Mail (ABRM) tool. You can access the ABRM site at
https://www.usps.com/business/reply-mail-solutions.htm.
DO NOT REDUCE OR ENLARGE THESE POSITIVES AND PRINTS!!!
Nonmailable Pieces – All pieces “not meeting” the minimum size standards are nonmailable.
Nonmachinable Surcharge – Letter-rate BRM that weighs 1 ounce or less is nonmachinable and
subject to the nonmachinable surcharge if it meets the criteria for ‘Nonmachinable
Characteristics’. In addition, any such pieces are not eligible for the QBRM discount.
Printing Standards for Reply Mail
Paper Weight – For BRM envelopes, you must use paper stock with a basis weight of at least 20
pounds (the weight of 500 17-by-22-inch sheets). For cards, you should use card stock with a
basis weight of at least 75 pounds or greater, with none less than 71.25 pounds (measured
weight of 500 25-by-38-inch sheets). For BRM cards sent as QBRM, this basis weight is a
minimum requirement. Cards also have a minimum thickness requirement.
Paper Grain – You should orient the paper grain in cards parallel to the long dimension of the
card. Long-grain cards are damaged less often than cards with the grain parallel to the short
dimension of the card.
Dark Fibers – If your BRM pieces contain dark fibers, make sure that the print contrast ratio
between the fibers and the material is 15 percent or less in the red and the green portions of
the optical spectrum, measured with a reflectance meter produced or licensed by The Postal
Service.
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Print Reflectance – You may use any color ink if there is at last a 30 percent print reflectance
difference (PRD) in the red and the green portions of the optical spectrum between the ink and
the background material of the BRM piece, measured with a reflectance meter produced or
licensed by The Postal Service. Black ink on a white background generally satisfies this PRD
requirement and is recommended.
Background Reflectance – You must make sure that the material used for your BRM pieces
produce a background reflectance of at least 50 percent in the red portion and 45 percent in the
green portion of the optical spectrum, measured with a reflectance meter produced or licensed
by The Postal Service. Material must have a fluorescence of no more than 4.0 phosphor meter
units. Fluorescent colors generally do not meet this requirement. Fluorescent colors should be
tested and approved by the Postal Service.
Qualified Business Reply Mail (QBRM)
QBRM provides an automated method for sorting, counting, and rating BRM. The processing of
your mail on automated equipment presents an excellent opportunity for increasing efficiency,
improving service, and protecting postal revenues. QBRM is recommended for large returns of
BRM as it will benefit the mailer with the least expensive amount of service fees.
You must be assigned a unique add-on for each rate category of BRM authorized for QBRM
(card rate, 1-ounce letter rate, and 2-ounce letter rate). You may obtain a reduced BRM fee by
participating in QBRM. Participation requires preparing BRM pieces as described in the DMM.
If you want to participate in QBRM, you must do the following:
 Submit PS Form 6805, Qualified Business Reply Mail (QBRM) Application and Approval, to
the postmaster or the manager of business mail entry at the Post Office to which the BRM
pieces are to be returned.
 Produce sample BRM pieces using ZIP+4 Code and FIM positives provided by The Postal
Service.
 Provide a preproduction sample of each BRM piece to the mail piece design analyst for
evaluation.
 Have a valid BRM permit.
 Pay the annual BRM permit and accounting fees.
 Obtain authorization to participate in QBRM.
 Follow all requirements in the DMM.
Unique ZIP+4 Code – You must have a unique four-digit add-on code specific to BRM and unique
for each category of BRM pieces (such as postcard, 1-ounce letter, 2-ounce letter). Only lettersize BRM pieces that weigh 2 ounces or less are eligible for QBRM discounts.
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Removal from Program – You may be removed from the QBRM program and required to pay
the higher BRM per-piece fee for any of the following reasons:
 Your returned pieces fail to meet the readability specifications.
 Use of unique BRM ZIP+4 Code being used on a mail piece other than the one to which it is
assigned.
 The ZIP+4 Code intended for regular mail delivery is used on BRM pieces.
 The annual accounting and permit fees are not paid.
 Other BRM standards in the DMM are not met.
Additional Standards – Besides meeting the standard BRM format requirements, you must
meet the following additional QBRM requirements:
 Pre-barcode your QBRM pieces with an IMb. You are assigned a unique ZIP+4 Code and
corresponding barcode that identify the customer and the category of mail.
 Use FIM C. Artwork is available at no charge from the Postal Service through the Automated
Reply Mail (ABRM) tool at https://www.usps.com/business/reply-mail-solutions.htm.
Paying for Replies – In paying for Business Reply Mail there are two basic options:
Regular Per-Piece Fee: This option, the letter carrier delivers your BRM pieces and charges you
First-Class Mail® postage plus a BRM per-piece fee. You pay the carrier directly or through a
regular postage due account. This method is recommended if you receive a small volume of
BRM pieces.
Advance Deposit Account: This option allows you to set up a Business Reply Mail Advance
Deposit Account with The Postal Service® and place money on deposit. Your per-piece Business
Reply Mail fee is lower than the regular per-piece fee. Your mail is processed in a postage-due
unit that counts the number of pieces, calculates postage charges, and debits your postage
account. . Postage and service fees for Business Reply Mail accounts may be paid by cash,
postage due and Business Reply Accounts.
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International Business Reply Service
International business reply service (IBRS) is similar to domestic business reply mail service. IBRS
allows you to distribute envelopes and cards in certain foreign countries for return to you in the
United States without prepaying postage.
With IBRS, you can extend your reach throughout the world, opening new markets or improving
current markets. As with domestic business reply mail, you pay only for IBRS pieces mailed back
to you by the respondents.
Be sure to take your IBRS samples to the Post Office™ for evaluation and approval. By using this
service, you can save time and money. For complete information on designing and using IBRS,
see Publication 513, International Business Reply Service, and the International Mail Manual
(IMM)
See the most current IMM for a list of participating countries, or contact your account
representative or postal business center if the country you seek is not listed.
IBRS Dimensions
IBRS
Dimension
Height
Length
Thickness
Card
Minimum
3–1/2 inches
5-1/2 inches
0.007 inches
Card Maximum
4-1/4 inches
6 inches
0.016 inches
Letter Minimum Letter
Maximum
3–1/2 inches
4-3/4 inches
5-1/2 inches
9-1/4 inches
0.007 inches
0.200 inches
Weight – You must make sure that your IBRS piece weighs no more than 2 ounces.
Window Envelopes – If you use window envelopes, make sure that all windows are covered
with a non-tinted, transparent material. You may not use open (non-covered) windows for IBRS.
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Courtesy Reply Mail
Courtesy reply mail (CRM) is a good choice for responses that are fairly certain, such as
payments for mailed invoices. CRM is appropriate when the response is more or less assured,
such as for billings. With CRM, you (the sender) provide your customer (the respondent) with a
preprinted return envelope or card without postage. The customer pays the return postage.
CRM Design Format
Barcode Location: This area must be free of any
printing other than the appropriate barcode. A
camera-ready barcode positive may be obtained
from your local Post Office.
Receiving Customer Responses – Although the customer usually pays the return postage the
preaddressed postcard or envelope add convenience and ensures addressing accuracy. Making
your CRM automation-compatible and using a FIM and barcode can lead to more efficient
service through processing on automated equipment. For large billings, more efficient service
means significant amounts of revenue received earlier. This revenue can increase your interest
earned in the bank and improve your cash flow. CRM pieces that are enclosed in automation
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rate mailings also must meet the standards for that mailing. Compared with BRM, CRM has few
design standards aside from barcodes and FIMs. Design standards for CRM mailpieces are
slightly different than your basic BRM.
CRM Envelopes – Letter mail may not be less than 0.009 inch thick if it is more than 4-1/4 inches
high or more than 6 inches long or if the mail exceeds both those dimensions. (The length of a
mail piece is the dimension that parallels the lines of the delivery address. The top and bottom
also parallel the delivery address lines.)
Basic Design Formats – Make sure that the formats of your CRM envelopes and cards are
correct before you print them. A Postal Service MDA can determine whether your CRM pieces
meet the standards.
Nonmachinable Surcharge – Nonmachinable letter-rate First-Class Mail is subject to the
applicable surcharge if it meets the criteria for ‘Nonmachinable Characteristics’. Nonmachinable
mail pieces are not automation-compatible.
Postage Reminder – You can include in the upper right corner of your CRM piece a reminder to
affix postage.
Meter Reply Mail
Meter stamps may be used to prepay postage on CRM postcards and envelopes, which converts
to Meter Reply Mail (MRM). Follow the same format standards as with CRM. The only exception
is the MRM legend must read: "NO POSTAGE STAMP NECESSARY POSTAGE HAS BEEN PREPAID
BY:" above the delivery address.
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8 Postage Methods
Postage Stamps
All postage stamps issued by the United States since 1860, unless specified by USPS rules, are
valid for postage from any point in the United States or from any other place where U.S. Mail
service operates.
Forever Stamps
Forever stamps are available for Domestic and Global International mailing purposes and are
sold for the price of the current First-Class Mail single-piece 1-ounce letter price. The postage
value of each forever stamp will never depreciate, regardless of when it was purchased. Forever
stamps may be used only on single-piece price mail.
Domestic Forever rated stamps offers a single price for any First-Class Mail
1-ounce letter to be mailed to anywhere within the US and will always
equal in value to the current First-Class Mail one-ounce retail stamp rate.
Global Forever International rated stamps offers a single price for any FirstClass Mail International 1-ounce letter to any country in the world, and
may also be used to mail a 2-ounce letter to Canada.
Precanceled Stamps
Precanceling is the cancellation of adhesive postage stamps, stamped envelopes, or stamped
cards before mailing. Precanceling may be done by the USPS or by the mailer under a postal
permit. Precanceled commemorative stamps are not available.
Prohibited Use of Precanceled Stamps - Precanceled postage stamps may not be used on
matter mailed in boxes, cases, bags, or other reusable mailing containers. Unless accepted by
standard, a precanceled stamp mailing must be accompanied by documentation subject to the
standards for documentation for each class of mail.
Use of Precanceled Postage - Precanceled postage is an optional postage payment method for
mailings at Presorted and automation First-Class Mail rates and at all Standard Mail rates.
Precanceled postage may be used only by authorized permit holders. Unless accepted by
standard, the total postage affixed must equal at least the postage charge for the class of the
mail and, if applicable, the fee for the extra service requested.
All nondenominated postage and makeup rate stamps, including official mail stamps, are valid at
the original rates of issue.
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Amount of Postage - The value of precanceled stamps affixed to each piece in a mailing must be
either the exact amount due or another amount permitted by standard.
Depositing Precanceled Stamp Mailings – Mail bearing precanceled postage must be presented
to the Post Office where the permit is held, at the times and places designated by the
postmaster. Mail bearing precanceled postage must not be deposited in street collection boxes.
Combining Precanceled Stamps With Other Postage Payment Methods – Precanceled mail may
be combined in a mailing with mail paid with other means only if authorized by the USPS.
Return Address – Mailpieces with any precanceled imprint must have a complete domestic
return address. If the return address is outside the delivery area of the Post Office of mailing,
the mailer must put a cancellation endorsement to the left of the postage showing city, twoletter state abbreviation, and ZIP Code of the office of mailing; or submit, at the time of mailing,
a duplicate of the postage statement and a sample mailpiece, both in an envelope stamped and
addressed to the postmaster at the Post Office shown in the return address; or use the
cancellation endorsement "Mailed From ZIP Code" followed by the 5-digit ZIP Code assigned to
the postmaster at the office of mailing.
Markings and Endorsements – Whether the mailer or the USPS precanceled the stamps, each
mailpiece with precanceled postage must bear markings and endorsements required for the
rate claimed or services requested.
Authorization to Use Precanceled Stamps
A mailer who wants to use USPS-precanceled stamps and stamped envelopes must complete
Form 3615 and file it at the Post Office where mailings are to be deposited. If an applicant has a
completed Form 3615 on file for other services, precanceled authorization is annotated on the
existing application. There is no fee for this permit.
Design and Content of Mailer’s Postmark
The mailer’s precancel postmark must contain the following elements:
 The mailing date (day, month, and year) if used on First-Class Mail; the month and year of
mailing may be shown on Standard Mail.
 The words “Mailer’s Postmark” followed by the permit number and enough lines to deface
(cancel) the postage.
 Either the city, state, and 5-digit ZIP Code of the Post Office where the precanceled permit is
held and the mailing is to be deposited, or the words “Mailed From ZIP Code” followed by
the 5-digit ZIP Code of the mailing office. (If that Post Office is assigned more than one 5digit ZIP Code, the precancel postmark must show the 5-digit ZIP Code assigned to the
postmaster.)
Price Marking – The precancel postmark may include the words or authorized abbreviations of
the price marking required for the price claimed. Alternatively, if authorized, the mailer may
preprint price markings required by other standards on adhesive stamps to be used for mailings
at the corresponding prices. Such preprinted markings must be in uppercase letters of at least 6-
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point type, printed in black indelible ink on the stamp where optimum contrast is possible. A
preprinted price marking applied by the mailer, by itself or with a precancel postmark, must not
obscure other printing on the stamp that is part of the USPS design (e.g., “USA”).
Cancellation of Stamps – Black ink must be used for cancellation. It must provide enough
indelibility and contrast to prevent reuse of the stamps. The precancel permit number must not
be obscured by the cancellation.
Required Format – A mailer must use one of the Format A designs. Format B may be used only
by a mailer previously authorized to do so and who has the necessary die. The only permissible
alternative or modification to any format is the addition of a price marking permitted.
Format Options for Mailer’s Precancel Postmarks
Stamp Collectors – Subject to USPS policy, precanceled postage may be bought for philatelic
purposes as well as postage payment. A stamp collector may mail matter bearing precanceled
postage if the collector has a permit to use precanceled postage at the Post Office where the
mail is presented. Creating philatelic oddities or precanceling issues or denominations that
would not otherwise see legitimate mail use is not permitted. Mail orders must include a
stamped, self-addressed envelope.
Revocation of Precanceled Stamp Permit – A permit may be revoked if used in operating any
unlawful scheme or enterprise, or for buying or acquiring stamps or mailer's precanceled
postmarks for other than mailing, or for failing to comply with the format requirement or
instructions on Form 3615. The permit holder has 10 days to file a written statement showing
why the permit should not be revoked. The manager, customer service support (district), issues
the decision on such appeals.
Postage Stamps Invalid for Use – The following services do not qualify for payment using the
Postage Stamp payment option for domestic or international mail:
 Postage Due, Special Delivery, Special Handling, or Certified Mail Stamps.
 Stamps from other countries.
 United Nations stamps, unless on mail deposited at the United Nations, NY.
 US postage stamps that are mutilated or defaced; cut from stamped envelopes,
aerogramme, or stamped cards; covered or coated in such a manner that canceling or
defacing marks cannot be printed onto the stamps; or overprinted with an unauthorized
design, message, or other marking.
 Nonpostage stamps, such as migratory-bird hunting and conservation stamps, US saving and
thrift stamps.
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Postage Meters & PC Postage Products
Postage meters and PC Postage products are collectively identified as "postage evidencing
systems." A postage evidencing system is a device or system of components a customer uses to
print evidence that postage required for mailing has been paid.
Postage evidencing systems print indicia, such as meter imprints or information-based indicia
(IBI), to indicate postage payment. Mailers print indicia directly on a mailpiece or on a label that
is affixed to a mailpiece. Mailers must place indicia in the upper-right corner of the mailpiece or
label.
Product categories include postage meters and PC Postage products. Additional information on
product categories and authorized providers are available online at USPS.com/postagesolutions
The primary characteristics of postage meters and PC Postage products are described as follows:
 Postage meters are devices that allow download, storage, and accounting of postage in the
device. Meters print indicia that may be IBI or non-IBI, to indicate postage payment. IBI are
digitally generated indicia that include a two-dimensional barcode. Postage meters are
available only through authorized providers. Meters may only be leased or rented and may
not be sold or resold. Some components of metering systems may be purchased as
authorized by the USPS.
 PC Postage products are software-based solutions for managing postage accounts. Mailers
purchase postage using a computer and print indicia using desktop or label printers. PC
Postage products print IBI indicating postage payment and may print directly onto
mailpieces, shipping labels, and USPS-approved customized labels. PC Postage products are
offered by commercial providers approved by the USPS. PC Postage products are typically
offered by providers through subscription service agreements. Some components of PC
Postage systems may be purchased as authorized by the USPS. PC Postage technology also
enables authorized postage payment for Internet-based services operated by authorized
private vendors as well as Click-N-Ship, a shipping label option available at www.USPS.com
Authorized Meter Providers
FP MAILING SOLUTIONS
HASLER INC
NEOPOSTINC
PITNEY BOWES INC
DATA-PAC MAILING SYSTEMS CORP
Authorized PC Postage Providers
ENDICIA.COM (PSI SYSTEMS INC)
PITNEY BOWES INC
STAMPS.COM
Authorized Classes of Mail – Mailers may use postage evidencing systems to affix or imprint
indicia on any class of mail except Periodicals. Non-Profit mailers will often use postage meters
that print up to three decimals to capture as much postage savings as possible.
Authorization to Use Postage Evidencing Systems – Customers must enter into an agreement
with the USPS® for authorization to use postage evidencing systems. By entering into the
agreement, the customer accepts responsibility for control and use of the system and agrees to
abide by all rules and regulations governing its use.
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The following conditions apply to these agreements.
 Customers enter into an agreement with the USPS (e.g., via electronic click-through or
contract signature) in conjunction with executing a separate agreement with the provider
for rental, lease, or use of a postage evidencing system. Actual implementation of the
agreement with the USPS varies by product category and provider and is typically facilitated
by the provider on behalf of the USPS. Postage evidencing systems are rented or leased.
They may not be purchased, sold, or resold.
 A meter lease or rental agreement with an authorized provider is required for postage
meter use. Registration with an authorized provider is required for PC Postage system use.
 The customer must provide updated address information to the provider in the event of
relocation.
 Postage meter manufacturers must conduct inspection of certain meters on a scheduled
basis. The customer agrees to make the meter available for provider inspection or USPS
examination when required.
 The customer agrees to promptly report a defective meter, or loss or theft of a meter, to the
provider.
Authorized Possession – Only authorized customers may possess or use postage evidencing
systems. Customers must surrender postage evidencing systems to the provider or its agent
upon termination of the lease or rental agreement or device malfunction.
Denial of Use – USPS may deny use of a postage evidencing system in the event of failure to
comply with rules and regulations. The customer must make the postage evidencing system and
transaction records available and surrender the system to the provider, the USPS, or its agent
when notified to do so.
Appeal Process – Appeals regarding standards in this section or regarding decisions on the basis
of noncompliance must be made in writing to the manager, Postage Technology Management.
Postage Payment – The value of the indicia on each mailpiece must be the exact amount due for
the applicable rate category and associated criteria such as weight, shape, and zone or another
amount permitted by mailing standards to qualify for work sharing or volume discounts.
Payment options vary by provider and product category. Contact your provider for authorized
USPS® payment options.
Legibility of Postage – Postage indicia must be legible (readable by USPS personnel and mail
processing equipment). Illegible or unreadable (unscannable) indicia are not acceptable as
payment of postage. Reflectance measurements of the indicia and the background material
must meet the standards as described in the DMM.
Placement of Postage – Mailers must print or apply indicia in the upper-right corner of the
envelope or address label. Mailers must meet the following additional standards when placing
indicia on mailpieces.
 Position indicia at least 1/4 inch from the right edge of the mailpiece and 1/4 inch from the
top edge of the mailpiece.
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



Do not allow the indicia to infringe on the areas reserved for the FIM, IMb, or optical
character reader (OCR) clear zone.
Orient indicia with the longest dimension parallel to the address.
When a FIM is printed with the indicia, position the FIM according to standards in the DMM.
When placing multiple indicia on an envelope (e.g., for redate or postage correction) the
indicia must not overlap each other. Overlapping indicia are not acceptable as payment of
postage.
Postal Markings – Indicia are comprised of human-readable information. Information-based
indicia (IBI) also contain machine-readable information that identifies the postage evidencing
system, postage payment information, and mail service requested. There are particular data
sets associated with different types of indicia, depending on the product and the type of mailing.
Indicia may include postal markings related to the class of mail and presort level and an ancillary
service endorsement. All words must be legible and in bold capital letters at least 1/4 inch high
or 18-point type. Refer to the DMM for standards for placing ancillary service endorsements on
letter-size mailpieces, flat-size mailpieces or parcels.
Refund Procedures – Refund procedures for unused printed postage, postage purchased but
not printed, and postage lost due to postage evidencing system failure varies by product
category. Unused, dated postage meter indicia are considered for refund only if complete,
legible, and valid. PC Postage indicia refunds are processed under DMM 9.3.3.
All other metered postage refund requests must be submitted as follows:
 The licensee must submit the request. The refund request must include proof that the
person or entity requesting the refund is the licensee for the postage meter that printed the
indicia. Acceptable proof includes a copy of the lease, rental agreement, or contract.
 The licensee must submit the request, along with the items bearing the unused postage, to
the licensing Post Office. The items must be sorted by meter used and then by postage value
shown in the indicia, and must be properly faced and bundled in groups of 100 identical
items when quantities allow. The request is processed by the USPS. The postmaster
approves or denies the refund request.
 The licensee must submit the refund request within 60 days of the date(s) shown in the
indicia.
 When the unused metered postage is affixed to a mailpiece, the refund request must be
submitted with the entire envelope or wrapper. The unused metered postage must not be
removed from the mailpiece once applied.
 Indicia printed on labels or tapes not stuck to wrappers or envelopes must be submitted
loose and must not be stapled together or attached to any paper or other medium.
However, self-adhesive labels printed without a backing may be submitted on a plain sheet
of paper.
 If a part of one indicia is printed on one envelope or card and the remaining part on one or
more, the envelopes or cards must be fastened together to show that they represent one
indicia.
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

Refunds are allowable for indicia on metered reply envelopes only when it is obvious that an
incorrect amount of postage was printed on them.
The refund request must be submitted with Form 3533. A separate Form 3533 must be
completed for each meter for which a refund is requested. All identifying information and all
sections related to the refund requested must be completed.
Charges for processing a refund request for unused, dated meter indicia are as follows:
 If the total face value of the indicia is $350 or less, the amount refunded is 90% of the face
value. USPS may process the refund payment locally via a no-fee postal money order.
 If the total face value is more than $350, the amount refunded is reduced by a figure
representing $35 per hour, or fraction thereof, for the actual hours to process the refund,
with a minimum charge of $35.
Refunds Not Given
A postage refund will not be given if the guaranteed service was not provided due to
any of the circumstances listed below:

The item was properly detained for law enforcement purposes (see Administrative Support
Manual 274).

The item was delayed due to strike or work stoppage.

The item was delayed because of an incorrect ZIP Code or address; or forwarding or return
service was provided after the item was made available for claim.

The shipment is available for delivery, but the addressee made a written request that the
shipment be held for delayed delivery.

The shipment is undeliverable as addressed.

If authorized by USPS Headquarters, and the delay was caused by governmental action
beyond the control of USPS or air carriers; war, insurrection, or civil disturbance; delay or
cancellation of flights; projected or scheduled transportation delays; breakdown of a
substantial portion of USPS transportation network resulting from events or factors outside
the control of USPS; or acts of God.

The shipment contained live animals and was delivered or delivery was attempted within 3
days of the date of mailing.

The Priority Mail Express Next Day shipment was mailed December 22 through December 25
and was delivered or delivery was attempted within 2 business days of the date of mailing.

The postage refund was other than for loss, and the Priority Mail Express piece was destined
to Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the
Republic of the Marshall Islands, or the Federated States of Micronesia.
Date and Postage Corrections – Mailers may print a date correction or additional postage
indicia directly on the mailpiece. A date correction indicia is required for any mailpiece not
deposited by the date of mailing in the indicia. Only one date correction indicia is permitted on a
mailpiece. Indicia for additional postage on short-paid mailpieces must equal the total amount
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of required postage. To correct an incorrect mailing date and if the material is letter size, the
recommended position to place the “$.00” meter impression is on the non-address side of the
envelope in the upper right hand corner OR on the address side in the lower left corner.
Mailing Date Format – The mailing date in meter indicia must meet the format standards in this
section. The year must be represented by all four digits or by the last two digits. Mailers may
print the indicia directly onto mailpieces or onto separate labels or tape affixed to mailpieces.
The mailing date format used in the indicia is also subject to the following conditions.
Mailers must use a complete date for the following:
 All First-Class Mail, Priority Mail, and Express Mail pieces.
 All mailpieces with Insured Mail, COD, or Special Handling service.
 All mailpieces prepared with the indicia printed on nonadhesive paper (e.g., computer
printer paper) and affixed to the mailpiece or used as part of an insert in a window
envelope.
Mailers may use a complete date or a mailing date consisting solely of the month and year in the
indicia only for Standard Mail and Package Services pieces.
Mailers must use indicia with no mailing date for prepaid metered reply postage. As an option,
mailers may use indicia with no mailing date for Standard Mail and Package Services pieces.
Mailing Date Accuracy and Mailing Periods – The date or period when mailers may deposit or
present metered mail for mailing is controlled by the mailing date in the indicia under the
following conditions.
Mailpieces bearing a complete date in the indicia must be deposited or presented on that date,
except that pieces entered after the day's last scheduled collection from the Post Office or
collection box may bear the actual date of entry or the date of the next scheduled collection
from the Post Office or collection box.
When authorized by USPS, presort mail accepted after midnight may bear the previous day's
date. If the mailer knows that the mail is not to be deposited or presented on the date in the
indicia, the mailer must use a date correction indicia.
Mailpieces bearing only the month and year in the indicia may be deposited or presented for
mailing on any day during the month shown in the indicia and through the third day of the
following month.
Mailpieces bearing no date in the indicia may be deposited or presented for mailing on any date.
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Deposit of Mail – Mailers must deposit or enter mailpieces with metered or PC Postage indicia
according to the following conditions.
 Mailers may deposit Express Mail, Priority Mail, single-piece rate First-Class Mail, singlepiece rate Media Mail, and single-piece rate Library Mail items with metered or PC Postage
indicia at any postal facility, preferably within the area of the customer's local Post Office.
 Mailers must deposit all mail not specified as follows:
o At a postal facility within the ZIP Code shown in the indicia.
o For Presort rate mail, at the authorized mailing office if not at a facility within the
ZIP Code™ shown in the indicia.
 Mailers also may drop-ship metered mail according to standards in DMM 705.17.0.
Permit Imprint (Indicia)
A mailer may be authorized to mail material without affixing postage when payment is made at
the time of mailing from a permit imprint advance deposit account established with the USPS
for that purpose.
This payment method may be used for postage and extra service fees for:
 First-Class Mail
 Standard Mail
 Package Services
This method is not available for Periodicals or Express Mail and must not be used to pay postage
on any mailpiece that is designed for reply purposes. Permit Imprint is the only approved
method to evidence postage for USPS manifest mailing.
Permit imprint mailings must contain at least 200 pieces or 50 pounds, except:
 Other higher minimum quantities apply, depending on the rate claimed.
 An occasional First-Class mailing containing fewer than 200 pieces from a mailer whose total
daily mailings are not much more than 200 pieces but who, to cooperate with the Post
Office, presents a part of that mail early in the day.
 A mailing contains fewer than 200 pieces and is the completion of a large mailing extending
over 2 or more consecutive days and the mailer includes an explanation on the
accompanying postage statement.
 Single-piece rate mailings submitted under the terms of an approved manifest mailing
system agreement with a minimum volume provision.
Use of Permit Imprint – Each mailpiece sent under this payment method must bear a permit
imprint indicia showing that postage is paid. Permit imprint indicia may be printed directly on
mailpieces, on labels (including address labels) permanently affixed to mailpieces, or on
mailpiece wrappers, envelopes, and other containers. Except where the enclosure is prohibited
by other standards, matter bearing a permit imprint indicia may be mailed as an enclosure when
postage for the enclosure or the host matter is not paid with the enclosed permit imprint, and
the enclosed permit imprint indicia is not visible when the matter is mailed.
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Stealth Postage – One of the major benefits that is available to a USPS Manifest user is the
ability to disguise how much postage was spent to deliver their merchandise via the mail. This is
commonly referred to as “Stealth Postage”. Since the label from a manifest mailing includes a
unique identifier that can be matched to the weight, class of service and cost of that particular
piece of mail, the amount of postage does not need to be affixed.
Catalog, TV and On-line retailers see this as a significant opportunity to make additional revenue
when using the Postal Service to deliver their goods as they will charge more than what it costs
them to ship. Conversely, if a customer receives their merchandise and notices that the amount
spent was significantly less than what they were charged, they likely would perceive the retailer
was not treating them fairly.
Permit and Fees – A mailer may obtain a permit to use a permit imprint indicia and pay postage
in cash before or at the time of mailing by submitting Form 3615 and the applicable fee to the
Post Office™ where mailings are made. There is no other fee for the use of a permit imprint
indicia as long as the permit remains active, but other fees (e.g., an annual presort mailing fee)
may be due depending on the class of mail to be prepared.
Payment of Permit Imprint Postage – Payment must be made for each mailing, either in cash or
through an advance deposit account, before the mailing can be released for processing. Funds
to pay postage must be deposited as directed by the USPS. If the funds paid or on deposit are
less than that necessary to pay for a mailing, the difference must be paid or deposited before
the mailing or other permit imprint mailings can be accepted.
Preparation of Mailing – All pieces in a permit imprint mailing must be faced (positioned with all
addresses in the same direction, unless counter stacked under the applicable standards) and
meet the preparation standards for the rate claimed. Mail claimed at a postage rate that varies
by zone must be separated by zone when mailed, unless otherwise authorized by the USPS.
Weight Standards for Permit Imprint Mailing – All pieces in a permit imprint mailing must be of
identical weight unless authorized by the USPS. One exception is the USPS approved mixed
weight manifest system for First Class Presort and Presort Standard.
Depositing Permit Imprint Mailings – Mail must be deposited and accepted at the Post Office
that issued the permit, at a time and place designated by the postmaster, except as otherwise
provided for plant-verified Open & Distribute Services.
Revocation of Permit –A permit may be revoked for use in operating any unlawful scheme or
enterprise, if no mailings or payment of fees occurred during any consecutive 2-year period, for
refusal to provide information about permit imprint use or mailings, and for noncompliance
with any standard applicable to permit imprints. The permit holder may submit a written appeal
to the postmaster within 10 days of receipt of the revocation notice.
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Indicia Design, Placement, and Content – Embossed or unembossed permit imprint indicia may
be made by printing press, hand stamp, lithography, mimeograph, multigraph, or similar device.
They may not be typewritten or hand-drawn.
Permit Imprint Indicia Content and Format – The permit imprint indicia must be legible and of a
color that contrasts sufficiently with the paper and the indicia's background for readability. A
different color may be used to highlight the background of indicia.
Indicia Placement on Mailpiece – Permit imprint indicia must be aligned parallel with the
address of the mailpiece.
The indicia must not encroach on reserved space and can be placed in one of these four
positions:
 Upper right corner of the mailpiece.
 Upper right corner of the address area.
 To the right of the address on an address label.
 To the right of the address on an insert appearing through a window envelope.
First-Class Mail and Priority Mail Format – A permit imprint indicia on First-Class Mail or Priority
Mail must show "First-Class Mail" or "Priority Mail" (or "Priority"), as applicable; "U.S. Postage
Paid"; city and state; and permit number. The "Priority Mail" (or "Priority") marking may be
omitted when using USPS-provided Priority Mail envelopes and containers.
The indicia may show the mailing date, amount of postage paid, or the number of ounces for
which postage is paid. The ZIP Code of the permit holder may be shown directly after the state
name or in a separate inscription reading "ZIP Code 00000," when that ZIP Code does not create
uncertainty about the permit holder's correct address or permit number. Instead of printing the
city and state of mailing in the indicia, the mailer may print "Mailed From ZIP Code," followed by
the 5-digit ZIP Code assigned to the postmaster of the mailing office. The indicia may also
include required rate markings.
Standard Mail and Package Services Format – A Standard Mail or Package Services permit
imprint indicia must contain the same information required in a First-Class Mail indicia, except
“First-Class Mail” or “Priority Mail” (for “Priority”) must be omitted. The indicia may include the
amount of postage paid, the weight of the piece, and rate markings as required. The indicia
must not include the mailing date.
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Company Permit Imprint – A company permit imprint is one in which the exact name of the
company or individual holding the permit is shown in the indicia in place of the city, state, and
permit number.
The following standards apply:
For 1 year from the date of mailing, the permit holder or its agent must keep records for each
mailing paid with a company permit imprint and make them available for USPS review on
request. These records include (for each version of what was mailed, if applicable)
 the weight of a single piece
 the total number of pieces mailed
 the total postage
 the date(s) and Post Office(s) of mailing
 and other records required by the postage price claimed or the payment method used
A complete sample mailpiece must be included for each identical-weight mailing, or each
commingled or combined version in a nonidentical-weight mailing. Sample pieces are not
required for nonidentical-piece Standard Mail and Package Services machinable or irregular
parcel mailings (e.g., merchandise and other fulfillment mailings).
Each mailpiece must bear a complete domestic return address. The return address on official
mail is subject to the corresponding standards. On unendorsed Standard Mail and Bound
Printed Matter, the return address is permitted below the indicia. Except for official mail, if the
return address is not the physical location at which the USPS may review the records listed (i.e.,
where they are kept or can be made available) or is not a point of contact from which such a
physical location can be readily determined, the mailer must:
 Include in the indicia the 5-digit ZIP Code of the physical location at which the records listed
are either kept or can be made available for USPS review.
 Provide the postmaster of that Post Office with a complete sample mailpiece (except as
noted above); the date(s) and Post Office(s) of mailing; and the name and local address of
the party from whom the records listed may be obtained.
Payment Methods for Co-mingled Mail – All of the postage payment methods noted above,
except stamps, may be commingled by a presort bureau. This includes metered mail, mail with
precanceled stamps and permit imprints.
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9 Private Express Statutes
The Private Express Statutes (PES) are a group of laws under which the United States Postal
Service (USPS) has the exclusive right, with certain limited exceptions and suspensions, to carry
letters for compensation. The Statutes are based on the provision in the U.S. Constitution that
empowers Congress "to establish Post Offices and Post Roads."
Congress enacted the Statutes in 1792 to protect the USPS and thereby enable it to fulfill its
mission of providing mail service to all parts of the country at uniform rates, no matter how
remote or sparsely populated. The regulations implementing the statutes are in Title 39, Code of
Federal Regulations (CFR) 310 and 320, respectively.
The Statutes enable the USPS to fulfill its responsibilities by preventing private courier services
from competing selectively with the USPS. The mailer is ultimately responsible for complying
with the statutes and regulations and should make every effort to be familiar with current
regulations pertaining to private carriage of letters. Private carriers are cautioned to ensure that
their carriage of matter is lawful within the definitions, exemptions, suspensions, and conditions
contained in the PES. For additional information, see 39 CFR 310.4 and 310.5.
The PES supports the basic mission of the Postal Service:
 To bind the nation together through the correspondence of the people.
 To provide services to all communities.
 To establish uniform postage rates.
 To ensure the safety of the mails.
The Statutes provide that letters may be transported outside the US Mail system only if one or
more of the exceptions or suspensions apply, or appropriate postage is paid. The basic
prohibition is against private carriage of letters for other persons without payment of postage.
The law allows for the private carriage of letters under certain circumstances, including letters:
 Sent with and relating in all substantial respects to the cargo that they accompany.
 Carried by the senders or recipients or their regular, salaried employees.
 Carried by private hands without compensation.
 Carried by special messenger on an infrequent, irregular basis for the sender or addressee.
 Carried to or from a postal facility prior or subsequent to mailing.
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What is a Letter?
For the purpose of the PES, a letter is defined as a message directed to a specific person or
address and recorded on a tangible object. A more complete definition can be found at title 39,
Code of Federal Regulations (CFR), 310.1.
Suspensions of the PES
 Data Processing Materials
 Letters of College & University Organizations
 Certain International Ocean Carrier-Related Documents
 Extremely Urgent Letters
 Advertisements with Parcels or Periodicals
 International Re-Mailing
Criteria for Extremely Urgent Letter Suspension of PES – Certain extremely urgent letters may
be carried by means other than the USPS and without the payment of postage. To ensure this
provision is not open-ended, two tests of urgency are prescribed. If either of the following two
tests is met, the suspension applies:
 The letter's value or usefulness will be lost or greatly diminished if not delivered within
specific urgent time limits, and the private carrier meets that time limit.
 It is "conclusively presumed" that a letter is extremely urgent if the amount paid for the
private carriage of the letter is at least $3.00 or twice the applicable First-Class rate
(including Priority Mail), whichever is greater.
Material Not Considered Letters
Within the meaning of PES, the following forms of communication are not considered letters:
 Telegrams
 Interoffice memos
 Financial instruments such as checks, drafts, promissory notes, bonds, stock certificates,
securities, title policies, and insurance policies, when shipped to, from, or between financial
institutions.
 Abstracts of title, mortgages, and other liens, deeds, leases, releases, and articles of
incorporation.
 Papers filed in lawsuits or formal quasi-judicial proceedings, and orders of courts and quasijudicial bodies.
 Newspapers and periodicals.
 Books and catalogs consisting of 24 or more bound pages with at least 22 printed, and
telephone directories.
 Matter sent from a printer, stationer, or similar source to a person ordering such matter for
use as his or her letters.
 Letters sent to a records storage center exclusively for storage, sent exclusively for
destruction, retrieved from a records storage center, and sent as part of a household or
business relocation.
 Tags, labels, stickers, signs, or posters whose type-size, layout, or physical characteristics
indicate that they are primarily intended to be attached to other objects for reading.
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Photographic material sent by a person to a processor, and processed photographic material
being returned from the processor to the person sending the material for process.
Copy sent form a person to an independent or company-owned printer or compositor or
between printers and compositors, and proofs or printed matter returned from the printer
or compositor to the office of the person who initially sent the copy.
Sound recordings, films, and packets of identical printed letters containing messages to be
totally or almost totally disseminated to the public.
Computer programs recorded on media suitable for direct input. For the conditions under
which the PES are suspended for data processing materials.
PES Resource Information
The Manager of Business Mail Entry (MBME) is the district coordinator for administration of the
PES. As coordinator, the MBME is the district’s source of PES information for customers and
Postal Service employees.
National administrative responsibility of the PES is under the jurisdiction of the manager of
Mailing Standards. If information is needed on a specific application or potential violation of the
PES, call 202-268-7261 or write to the following address:
MANAGER OF MAILING STANDARDS
UNITED STATES POSTAL SERIVE
475 L ‘ENFANT PLZ SW RM 4446
WASHINGTON DC 20280-4446
The public and Postal Service employees may obtain information about Advisory Opinions on
the PES by writing to the following address:
GENERAL COUNSEL
475 L ‘ENFANT PLZ SW
WASHINGTON DC 20280-1100
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10 History of The Postal Service
On July 26, 1775, members of the Second Continental Congress, meeting in Philadelphia, agreed
that a Postmaster General be appointed for the United Colonies, who shall hold his office at
Philadelphia, and shall be allowed a salary of 1000 dollars per an: for himself, and 340 dollars
per an: for a secretary and Comptroller, with power to appoint such, and so many deputies as to
him may seem proper and necessary. This simple statement signaled the birth of the Post Office
Department, the predecessor of the United States Postal Service and the second oldest federal
department or agency of the United States of America.
The Postal Service Begins
Three weeks after the battles of Lexington and Concord, the Second Continental Congress met
in Philadelphia in May 1775 to plan for the defense of the colonies against British aggression and
“to take into consideration the state of America.” The conveyance of letters and intelligence was
essential to the cause of liberty. A committee, chaired by Benjamin Franklin and including
Samuel Adams, Richard Henry Lee, Philip Livingston, Thomas Lynch, and Thomas Willing, was
named to consider the creation of a postal system.
The committee reported back to Congress on July 25, 1775. The Continental Congress agreed to
the committee’s recommendations on the following day, creating the position of Postmaster
General, and naming Franklin to it. Richard Bache, Franklin’s son-in-law, was named
comptroller, and William Goddard was appointed surveyor. Under Franklin and his immediate
successors, the postal system mainly carried communications between Congress and the armies.
Postmasters and post riders were exempt from military duties so service would not be
interrupted.
Benjamin Franklin served as Postmaster General until November 7, 1776. America’s present
Postal Service descends in an unbroken line from the system Franklin planned and placed in
operation. History rightfully accords him major credit for establishing the basis of the system
that has well served the growing and changing needs of the American people. His invention of
the “pigeon hole” sorting case remains useful even in today’s postal processing centers.
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The Pony Express
American transportation pioneer William H. Russell advertised for hostlers and riders to work on
the Overland Express Route via Salt Lake City in March 1860. Russell had failed repeatedly to get
the backing of the Senate Post Office and Post Roads Committee for an express route to carry
mail between St. Joseph, Missouri — the westernmost point reached by the railroad and
telegraph — and California. St. Joseph was the starting point for the nearly 2,000-mile central
route to the West. Except for a few forts and settlements, the route beyond St. Joseph was a
vast, unknown land, inhabited primarily by Native Americans. Many thought that year-round
transportation across this area was impossible because of extreme weather conditions.
Russell organized his own express to prove otherwise. With partners Alexander Majors and
William B. Waddell, Russell formed the Central Overland California and Pike’s Peak Express
Company. They built new relay stations and readied existing ones. The country was combed for
good horses — hardy enough to challenge deserts and mountains and to withstand thirst in
summer and ice in winter. Riders were recruited hastily but, before being hired, had to swear on
a Bible not to cuss, fight, or abuse their animals and to conduct themselves honestly.
On April 3, 1860, the Pony Express began its run through parts of Missouri, Kansas, Nebraska,
Colorado, Wyoming, Utah, Nevada, and California. On average, a rider covered 75 to 100 miles
daily. He changed horses at relay stations set 10 to 15 miles apart, swiftly transferring himself
and his mochila (a saddle cover with four pockets or cantinas for mail) to the new mount.
The first mail by Pony Express from St. Joseph to Sacramento took 10 days, cutting the overland
stage time via the southern route by more than half. The fastest delivery was in March 1861,
when President Abraham Lincoln’s inaugural address was carried from St. Joseph to Sacramento
in 7 days and 17 hours.
On July 1, 1861, the Pony Express began operating under contract as a mail route. The Pony
Express officially ended October 26, 1861, after the transcontinental telegraph line was
completed, and became an enduring legend.
ZIP Code
During World War II, thousands of experienced postal employees left to serve with the military.
To offset the loss, in May 1943 the Post Office Department began a zoning address system in
124 of the largest Post Offices. Under this system, delivery units or zones were identified by one
or two numbers between the city and state — for example, Birmingham 7, Alabama — so that
mail could be separated by employees who did not have detailed scheme knowledge.
Twenty years later, 1963, the Department implemented an even farther-reaching plan, the Zone
Improvement Plan–ZIP Code.
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Postal Reorganization Act
On March 12, 1970, after extensive hearings, the House Post Office and Civil Service Committee
reported a compromise measure containing provisions similar to the Commission proposals and
endorsed by President Nixon. The bill included a 5.4 percent retroactive pay raise and a system
that would allow employees to reach the top of their pay grade in 8 rather than 21 years. Postal
employees called it too little, too late.
On March 18, a work stoppage began. It ultimately involved 152,000 postal employees in 671
locations. The President ordered the Army to deliver the mail, and the unions asked Labor
Secretary George Shultz to intervene. Postmaster General Winton M. Blount agreed to negotiate
with the seven postal unions when the employees returned to work. They did, and negotiations
began March 25. Eight days later, the negotiating parties recommended a general wage increase
of 6 percent, retroactive to December 27, 1969, for all federal employees. Postal workers would
get an additional 8 percent increase if there was agreement on, and enactment of, legislation
reorganizing the Post Office Department.
On April 16, 1970, the Department and union leaders announced agreement on a reorganization
plan, which was embodied in a legislative proposal and sent to Congress by President Nixon. It
included four provisions that Postmaster General Blount saw as necessary: adequate financing
authority, removal of the system from politics to assure continuity of management, collective
bargaining, and setting of rates by the Postal Service® after an opportunity for hearings before
an impartial rate panel. In addition to the 8 percent pay increase, the bill provided for
negotiation of new wage-schedule permitting employees to reach the top of their pay grade in 8
years.
On August 3, 1970, by a vote of 57 to 7, the Senate approved the conference report on House
Resolution 17070, a modified version of the legislation proposed by the President. Three days
later, the House of Representatives approved it. On August 12, 1970, President Nixon signed
into law the most comprehensive postal legislation since the founding of the Republic, Public
Law 91-375, and the Postal Reorganization Act.
The Post Office Department was transformed into the United States Postal Service, an
independent establishment of the executive branch of the Government of the United States.
The mission of the Postal Service remained the same, as stated in Title 39 of the U.S. Code: The
Postal Service shall have as its basic function the obligation to provide postal services to bind the
Nation together through the personal, educational, literary, and business correspondence of the
people. It shall provide prompt, reliable, and efficient services to patrons in all areas and shall
render postal services to all communities.
The Postal Service officially began operations on July 1, 1971 and received:
 Operational authority vested in a Board of Governors and Postal Service executive
management, rather than in Congress.
 Authority to issue public bonds to finance postal buildings and mechanization.
 Direct collective bargaining between representatives of management and the unions.
 A new rate-setting procedure, built around an independent Postal Rate Commission.
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The Postal Service Board of Governors
The Board of Governors was established by the Postal Reorganization Act of August 12, 1970.
The Board includes nine Governors who are appointed by the President with the advice and
consent of the Senate. The nine Governors select a Postmaster General, who becomes a
member of the Board, and those ten select a Deputy Postmaster General, who also serves on
the Board. The Postmaster General serves at the pleasure of the Governors for an indefinite
term. The Deputy Postmaster General serves at the pleasure of the Governors and the
Postmaster General.
The Governors are chosen to represent the public interest and cannot be representatives of
special interests. Not more than five of the nine may belong to the same political party. The
Postmaster General and the Deputy Postmaster General participate with the Governors on all
matters except that they may not vote on rate or classification adjustments, adjustments to the
budget of the Postal Regulatory Commission, selection and removal of the Inspector General,
and election of the Chairman of Board. While the entire Board approves requests to the
independent Postal Regulatory Commission (originally the Postal Rate Commission) for changes
in rates and classes of mail, the Governors alone, upon receiving a recommendation from the
Commission, may approve, allow under protest, reject, or modify that recommendation. The
United States Postal Regulatory Commission (or PRC) is an independent regulatory agency
created by the Postal Accountability and Enhancement Act of 2006. Like the Postal Service, it
was defined in law as an independent establishment of the executive branch. The role of this
new PRC is defined in the PAEA. It is primarily responsible for approving or rejecting postal rate
adjustments and changes to postal service standards.
The entire Board determines the dates on which new rates and classification adjustments
become effective.
The Board directs the exercise of the powers of the Postal Service, directs and controls its
expenditures, reviews its practices, conducts long-range planning, and sets policies on all postal
matters. The Board takes up matters such as service standards, capital investments, and
facilities projects exceeding $10 million. It also approves officer compensation.
The first nine appointments were for staggered terms of 1 to 9 years. Subsequent appointments
have been made for a full 7 years or, when vacancies have occurred, for the remainder of the
un-expired terms. Each Governor’s term expires on December 8 of a given year. Governors may
continue to serve following expiration of their term until a successor is appointed, but not for
more than 1 year.
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Transformation Plan
The law that created today’s Postal Service, the Postal Reorganization Act of 1970, placed the
organization on a businesslike footing by making postal operations self-sufficient. The new
business environment led to unparalleled levels of service and efficiency.
In April 2001, United States Comptroller General David Walker placed the Postal Service’s
transformation efforts and long-term outlook on the General Accounting Office’s “high risk” list
because of the Postal Service’s significant financial, human capital, and structural challenges.
Walker stated that: The Service’s ability to provide universal postal service … will be increasingly
threatened unless changes are made, both within current law and to the legal and regulatory
framework that governs the Service.
The General Accounting Office, now the Government Accountability Office, asked the Postal
Service for a comprehensive plan that addressed these concerns. A year later, on April 4, 2002,
the Postal Service submitted its Transformation Plan to Congress. The plan presented targets to
improve service and manage costs. The Postal Service began to implement the plan’s service,
customer satisfaction, workplace improvement, and financial recommendations even before
submitting it to Congress.
In September 2005, the Postal Service published its Strategic Transformation Plan, 2006–2010,
which identified further strategies to enhance the Postal Service’s core business of delivering
mail.
From 2002 through 2006, the Postal Service saw:
 Record-level service performance and customer satisfaction scores during a period when
the Postal Service had added nearly 7 million new addresses to its delivery network.
 Consistent growth in total factor productivity.
 Nearly $5 billion in cost savings since 2000, a five-year savings target identified in the plan.
 A 7.5 percent reduction in the number of career employees with no layoffs.
 Greater efficiency and added value to the mail through innovative technology.
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The Postal Accountability and Enhancement Act of 2006
On December 9, 2006, after several years of discussion and study, Congress passed the farreaching Postal Accountability and Enhancement Act, H.R. 6407. President Bush signed the act
into law on December 20, 2006.
The act established two separate product categories: Market-Dominant products and
Competitive products; created the Postal Regulatory Commission (PRC) out of the Postal Rate
Commission and increased the PRC’s regulatory powers; returned the obligation to pay military
service costs to the Department of Treasury; and replaced escrow requirements to fund retiree
health benefits.
The act included other changes to the way the Postal Service has operated since the Postal
Reorganization Act of 1970.
 Any rate changes that take place in the 12 months after passage of the Postal Accountability
and Enhancement Act would be determined under the regulations in place prior to passage
of the act.
 Increases in the rates for market-dominant products such as First-Class Mail will be
restricted by a cap tied to the Consumer Price Index for 10 years. This cap would be
reviewed by the PRC at that time.
 Increases in competitive products such as Express Mail will not be capped. Rates will cover
attributable costs and contribute to institutional costs.
 The Postal Service must establish a set of service standards for its market-dominant
products within one year and then develop a plan, to be submitted to Congress, for meeting
these standards.
 The PRC will have subpoena power over the Postal Service and can levy fines against it if the
Postal Service does not take remedial action when the PRC finds a complaint filed regarding
rates, regulations, or service standards has merit.
 Governors will serve for seven- rather than nine-year terms.
 The PRC will report to Congress every five years on the effectiveness of the Postal
Accountability and Enhancement Act, with suggestions, if appropriate.
 At least four of the nine Governors must have experience in managing organizations
employing 50,000 or more people.
 The Postal Regulatory Commission must create an Office of Inspector General. The Board of
Governors will continue to appoint the Inspector General of the Postal Service.
 The act abolished the requirement for fact-finding, replacing it with a requirement for
mediation.
 Injured employees must use annual, sick, or leave without pay for three days before they
can collect continuation of pay benefits.
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Guiding Principles for Implementation of the New Law
These guiding principles are consistent with the intent of Congress that the Postal Service
continue to provide reliable universal service at affordable prices, while enhancing its ability to
operate in a more businesslike manner and foster growth and innovation in the mailing industry:
Design a modern pricing and regulatory system that:
 Provides flexibility to respond effectively to market and operational conditions, and the
needs of all customers.
 Provides incentives for the Postal Service and mailers to operate in a fashion that improves
the efficiency of the nation’s postal system.
 Supports the adoption of corporate best practices, such as rational investments in the
infrastructure, and the realignment of resources to match the changing needs of customers
and mailers, in order to respond to the system’s incentives.
 Promotes honest, economical, efficient management.
 Allows the Postal Service's competitive products to compete fairly in the marketplace.
 Ensures adequate revenues to support the network and set prices that cover cost in a
manner required by law.
 Streamlines the pricing and classification process to increase predictability and reduce
administrative burdens on all parties.
Have service standards consistent with universal service at reasonable prices that:
 Enhance the value of postal services
 Reasonably assure customers of delivery reliability
 Speed through the use of transparent performance measurement systems
Work together with the Postal Regulatory Commission and stakeholders to provide a high
degree of financial transparency by improving the quality of postal data systems through
warranted and cost-effective enhancements.
Challenges Facing the USPS
With the advent of the internet and email, the postal service has seen a steady reduction in the
volume of mail processed each year. To remain a viable organization, change must be driven at a
faster pace. Regulation must allow a greater level of flexibility to address this changing
environment.
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Significant Years in U.S. Postal History
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1775 – Benjamin Franklin was appointed first Postmaster General under Continental
Congress
1847 – US postage stamps issued
1855 – Prepayment of postage required
1860 – Pony Express started
1858 – Street letter boxes installed
1862 – Railway mail service began experimentally
1863 – Free city delivery began
1874 – General Postal Union (now Universal Postal Union) established
1885 – Special delivery began
1893 – First commemorative stamps issued
1896 – Rural free delivery began
1913 – Parcel Post began
1918 – Scheduled airmail service began
1950 – Residential deliveries reduced to one a day
1957 – Citizens' Stamp Advisory Committee established
1963 – ZIP Code and sectional center plan implemented
1970 – Postal Reorganization Act signed - Express Mail® began experimentally
1971 – United States Postal Service® began operations - Postmaster General no longer
in Cabinet - Labor contract negotiated through collective bargaining, a first for the
federal government - National service standards established - Letter cancelled on moon
by Apollo 15 mission
1976 – Discount offered for presorted First-Class Mail
1982 – Last year Postal Service accepted public service subsidy
1983 – ZIP+4 code instituted 2001 Business alliance with FedEx formed - Mail irradiated
due to anthrax threat - Signature Confirmation launched - Internet change of address –
instituted
1992 – Self-adhesive stamps introduced nationwide
1993 – National Postal Museum opened
1994 – Postal Service launched public Internet site
1998 – U.S. semipostal stamp issued
2002 – Transformation Plan released - President’s Commission on the United States
Postal Service established - Record levels of service performance posted for First-Class
Mail and Priority Mail - Confirm service became permanent - Segway Human
Transporter used experimentally
2003 – Civil Service Retirement System funding reform legislation passed Repositionable notes authorized on advertising mail - First negotiated service
agreement - Parcel Return Services pilot program began
2004 – Biohazard detection equipment deployed - Pay for Performance implemented Customized Postage tested
2005 – Standard Mail volume outpaces First-Class Mail volume – Strategic
Transformation Plan, 2006–2010 issued
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2006 – Postal Accountability and Enhancement Act signed
2007 – “ Forever” stamp issued
2008 – Competitive pricing for expedited mail began
2013 – POSTNET Barcode retired
Mailing Industry Resource Publications
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MAIL Magazine
Mailing Systems Technology Magazine
Parcel & Shippers Magazine
Postal Bulletin
USPS Mail Pro
Federal Register
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11 Postal Knowledge Review
Questions
1. The United States Post Office Department was established in what year?
a. 1971
b. 1972
c. 1775
d. 1776
2. The first Postmaster General of the Post Office was:
a. George Washington
b. Thomas Jefferson
c. Benjamin Franklin
d. Marvin Runyon
3. The Postal Service Reorganization Act occurred in what year?
a. 1971
b. 1963
c. 1983
d. 1970
4. ZIP stands for?
a. Zone Initial Process
b. Zone Improvement Plan
c. Zone Improvement Program
d. Zone in Property
5. The ZIP Code was established in what year?
a. 1955
b. 1961
c. 1963
d. 1964
6. Who appoints The Postal Service Board of Governors?
a. Congress
b. Senate
c. Legislatures
d. The President with advice and consent from the Senate
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7. Who appoints the Postmaster General?
a. Congress
b. The President
c. The Board of Governors
d. Senate
8. The Postal Regulatory Commission is:
a. An independent regulatory agency
b. A branch of The Postal Service
c. Part of the Legislative Branch
d. A nonprofit agency
9. Postage pricing for Market Dominant and Competitive Services are determined by regulations
set forth under the Postal Accountability and Enhancement Act?
a. True
b. False
10. The Private Express Statutes (PES) are:
a. Laws that make it unlawful for any entity other than the USPS to send or carry letters
over postal routes.
b. Postal rules that explain expedited delivery
c. A law that protects Federal Express and UPS from competition
d. None of the above
11. Registered Mail has insurance to what value of the enclosed article?
a. $.01 to $5,000
b. $.01 to $10,000
c. $.01 to $25,000
d. Registered Mail has no insurance provided but insurance is available for an additional
fee
12. Which one of the following is not an approved Move Update endorsement?
a. Address Service Requested
b. Return Service Requested
c. Change Address Requested
d. Forwarding Service Requested
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13. An address correction service that the USPS provides to mailers through USPS licensees. If a
match is made a correction can be made of the address’ before it is used on a pieces of mail.
a. Address Change Service (ACS)
b. Address Element Correction (AEC)
c. National Change of Address (NCOALink)
14. An automated process that provides change of address information to participating mailers
who maintain computerized mailing lists. The information is sent to mailers on electronic media,
which reduces the volume of manual change of address notices.
a. Address Element Correction (AEC)
b. Address Change Service (ACS)
c. National Change of Address (NCOA)
15. For automation rates on First-Class Mail addresses must be updated within ________ days
prior to the mailing dated by an approved move update method.
a. At least once a year.
b. 60 days
c. 95 days
16. For automation rate mailings, addresses must be matched using CASS/MASS-certified
process within _________ days before mailing.
a. 95 days
b. 180 days
c. At least once a year.
17. The system used for letter-size and flat-size mailpieces to print a barcode based on “reading”
an address on an envelope and generating an Intelligent Mail Barcode and then printing it onto
the mailpiece is:
a. Postal Numeric Encoding Technique (POSTNET) or Intelligent Mail Barcode
b. Presort Accuracy Validation Evaluation (PAVE)
c. NCOALink MPE
18. For a mailpiece that is forwarded during 1 – 12 months and a separate notice of new address
is provided; which endorsement should be used?
a. Forward Service Requested
b. Return Service Requested
c. Address Service Requested
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19. Which class of mail is generally used by publications (magazines & newspapers whose
primary purpose is transmitting information to an established list of subscribers or requesters?
a. Package Services
b. Standard Mail
c. Periodicals
20. Which class of mail weighs less than 16 oz. and includes advertisements, circulars,
newsletters, magazines, small parcels and merchandise?
a. First-Class Mail
b. Standard Mail
c. Express Mail
21. Which class of mail has 4 subclasses, of which items within these subclasses might include
merchandise, catalogs, printed materials and computer media? There is no minimum weight for
this class.
a. Package Service
b. First-Class Mail
c. Express Mail
22. Which class of mail includes all matter wholly or partly in writing or typewriting, all actual
and personal correspondence, bills, invoices, and all matter sealed or otherwise closed against
inspection?
a. Express Mail
b. Standard Mail
c. First-Class Mail
23. Which class of mail provides guaranteed expedited delivery service for mailable material?
a. First-Class Mail
b. Priority Mail Express
c. Priority Mail
24. What does CASS stand for?
a. Certified Address Software System
b. Coding Accuracy Support System
c. Coding Accuracy Software System
d. Correction Address Standards System
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25. What does the abbreviation FIM mean?
a. Facing Identification Mark
b. Free Identification Mark
c. Firm Identification Mark
26. Which of the following is not a “best practice” when addressing a mailpiece?
a. Type or machine-print all characters in dark on a light background.
b. Use the two letter state abbreviation.
c. Right-justify every line in the address block.
d. Left-justify every line in the address block.
27. For a Standard Mail mailpiece weighing 3 ounces, which endorsement will provide an
address correction notice at the least cost (assume the mailer is not an ACS participant, the
recipient has moved 15 months ago, and that the mailer does not require the mailpiece to be
forwarded or returned)?
a. Address Service Requested
b. Change Service Requested
c. Forwarding Service Requested
d. Return Service Requested
28. A bulk certificate of mailing may not be obtained for mailing identical pieces of First-Class
Mail or Standard Mail if the postage is paid with which kind of payment method?
a. Postage stamps
b. Pre-canceled stamps
c. Meter strips or meter impressions
d. Permit imprints
29. A partial refund for complete and legible unused meter stamps is made, when they are
submitted within 60 days from dates shown on these stamps:
a. The face value of the stamps is $350 or less, 90% is refunded
b. The face value of the stamps is more than $350, refund for the face value minus $35
per hour process fee, the minimum charge of $35.
c. Both “a” and “b”
30. Permit imprint mailings must contain:
a. At least 200 pieces or 50 pounds
b. At least 500 pieces or 75 pounds
c. At least 150 pieces or 50 pounds
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31. Postage for periodicals may not be paid with:
a. Permit imprint
b. Postage meter
c. Adhesive stamps
d. All of the above
32. Flat-size mailpieces, regardless of class of mail, must be rectangular in shape, uniform in
thickness and flexible.
a. True
b. False
33. Odd-shaped items that are properly wrapped within paper envelopes and sent at the FirstClass Mail or Standard Mail nonautomation rates may be subject to the nonmachinable
surcharge as applicable.
a. True
b. False
34. Postal Service processing equipment that will read the face of the envelope and spray a
barcode is called a:
a. Barcode Sorter
b. MERLIN
c. Multi-line Optical Character Reader
d. Small Parcel Sorters
35. Postal Service mail processing equipment that will read a barcode and sort the mail
accordingly is called:
a. MERLIN
b. Optical Character Reader
c. Small Parcel Sorters
d. Barcode Sorter
e. None of the Above
36. MERLIN is the acronym for:
a. Mail Evaluation Readability Lookup Instrument
b. Mail Estimate Readability Lookup Instrument
c. Mail Evolution Resource Line Instrument
d. None of the above
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37. The Postal Service processes mail through three types of operations. Which of the following
is one of those types?
a. Mechanical
b. Machinable
c. Manual
d. None of the Above.
38. Several steps are involved in the discount mailing process. A successful discount mailing
requires which of the following steps?
a. Choosing a Mailing Service
b. Choosing a Postage Payment Method
c. Preparing Your Mail
d. Sorting Your Mail
e. Entering Your Mail
f. All of the Above
39. When designing a mailpiece, who would be a good resource for obtaining instructions to
design automation-compatible mailpieces?
a. Mail Designer
b. Mailpiece Design Analyst
c. Cartoonist
d. Mail architect
40. Mail service providers can help you:
a. Purchase or rent an address list.
b. Manage your address database.
c. Design and print your mailpieces.
d. Sort your mailpieces.
e. Reduce your postage rate
f. Enter your mail into the mail stream.
g. All of the Above
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Answers
Question
MDC STUDY GUIDE
REVISED MARCH 2014
Answer
Chapter
Page
1.
C
10
1
2.
C
10
1
3.
D
10
3
4.
B
10
2
5.
C
10
2
6.
D
10
4
7.
C
10
4
8.
A
10
4
9.
A
10
6
10.
A
9
1
11.
C
5
4
12.
D
6
3
13.
C
3
5
14.
B
3
4
15.
C
3
3
16.
B
2
10
17.
A
4
2
18.
C
6
3
19.
C
1
13
20.
B
1
13
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POSTAL KNOWLEDGE REVIEW
Question
MDC STUDY GUIDE
REVISED MARCH 2014
Answer
Chapter
Page
21.
A
1
16
22.
C
1
11
23.
B
1
4
24.
B
2
2
25.
A
7
4
26.
C
4
3
27.
B
6
3
28.
D
5
1
29.
C
8
6, 7
30.
A
8
2
31.
D
1
13
32.
A
2
8
33.
A
2
4
34.
C
2
1
35.
D
2
2
36.
A
2
2
37.
B
2
1
38.
F
3
8
39.
B
2
5
40.
G
3
7
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