USPS: First-of-its-Kind Contract Moves Forward

Posted on by postal

New multi-channel approach adds vitality to billing and statement sector

WASHINGTON — In a first-of-its-kind contract the Postal Service and Discover Financial Services have entered into an agreement that will help to retain First-Class Mail and grow Standard Mail volume. On March 15 the Postal Regulatory Commission notified the Postal Service that the agreement could be implemented. This is the first such agreement for domestic market dominant products under the Postal Accountability and Enhancement Act (PAEA).

“This ruling benefits both Discover Financial Services and the Postal Service,” said Paul Vogel, president and chief marketing/sales officer. “It is important in its approach as the first multi-class agreement that is designed to add new vitality to billing and statement mail.” The agreement provides incentives to slow the diversion of First-Class Mail to electronic channels while spurring a corresponding increase in Standard Mail.

The agreement with Discover Financial Services provides a rebate for a portion of the postage paid for First-Class Mail and Standard Mail as a result of future price increases. To qualify for the rebates, Discover’s postage revenues must meet or exceed an established dollar threshold. The full-service Intelligent Mail barcode (IMb) would also be required for all qualifying mail volume under this program. The basic agreement includes five components:

* revenue threshold,
* revenue threshold adjustment,
* postage commitment,
* rebates on First-Class Mail, and
* rebates on Standard Mail.

source: USPS

4 thoughts on “USPS: First-of-its-Kind Contract Moves Forward”

  1. come on guys this is a rip off and next they are gonna upgrade their standard mail to star mail and it will get first class treatment and even higher if they dispatch it late fron it sourse to the post office. trese people are crooks and stealing right in front of out face this is mail fraud and should be investigated by the inspector service

  2. The strategy is to bust unions, (why should over paid average fools have a voice) and for me to funnel more and more cash to my rich friends. Keep voting Republican! Thank you.

  3. Where have you been? The strategy of everything in this country is lining the pockets of corporate crooks.

  4. More GIVE AWAY REVENUE agreements.

    These people NEVER LEARN…and they want to CONTINUE to line the pockets
    of their CORPORATE FRIENDS while failing to maximize the revenue stream
    that THEY ALREADY HAVE.

    Pitiful.

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