Washington, D.C.—The U.S. Postal Service has been granted permission to allow postage credit billing to direct mailers rather than requiring postage prepayment.
In a decision
this week, the Postal Regulatory Commission granted the USPS' request that it provide credit lines to direct mailers that enter into a negotiated service agreement with it, giving them the ability to pay postage via Automated Clearing House (online) methods. Currently, direct mailers pay upfront into an account for anticipated postage.
The Direct Marketing Association praised the decision. In a statement, DMA said, “By allowing credit billing rather than prepayment of postage, USPS enters the 'real world of commerce.' " DMA has urged the PRC to expand the ruling to all direct mailers, not just large mailers with negotiated service agreements.