January 9, 2012
The Postal Regulatory Commission last week approved new payment options for direct mail customers.
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Companies with service agreements with the USPS will no longer have to pay in advance before mailing their advertising promotions.
“USPS made its request last month, stating that alternative payment would only be allowed for NSA contracts for monopoly or competitive services when those contracts specify a particular payment term for the customer concerned,” explains the news site Postal & Parcel. “The Postal Regulatory Commission approved the changes… ruling that the benefits for mailers would outweigh the credit risk to USPS from no longer holding pre-paid funds ahead of carrying out contracted work”
The new rules could encompass prepayments as well as ACH payments. The USPS in recent years has seen a rise in advertising mail, which makes up most of the Standard Mail class, according to Postal & Parcel. Standard Mail revenues for the USPS were up 2.9% in Sept. 2011 as compared to the year prior , while First Class Mail revenues were down by 5.8%. Click here to read the full article.
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