POSTAL SERVICE CUTS CAPITAL ONE A RATE BREAK
CHICAGO (AdAge.com) -- The U.S. Postal Service is close to settling a deal with Capital One Financial Corp. to
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The savings for Capital One -- a major credit-card direct marketer -- will vary between three and six cents, while the deal is estimated to save the Postal Service $13 million a year, because it will not have to return undeliverable direct-mail pieces.
Capital One is the fourth-largest postal customer and biggest producer of first-class mail.
Increase first-class volume
The deal is also expected to prompt more first-class volume, said Stephen Kearney, vice president of pricing and classification.
Final approval on the agreement is expected from the Postal Rate Commission by the end of the month.
Mr. Kearney said the Postal Service has seen "substantial interest" from other companies looking for rate breaks, and is open to negotiating multiple deals.