RMS Postal Training - RR Donnelley

RMS 

Postal Workout Program 

Workout # 6 – 

Postage & Payment Methods 

Updated - 2013 

Response Marketing Services 

Knowledge That Delivers

Postal Workout 

1. RMS Introduction & Processes 

2. Mail Classification 

3. Processing Category – Size & Shape 

A. Letter & Postcard 

B. Flat & Parcel 

4. Addressing 

5. Barcodes 

A. Barcode Introduction 

B. Intelligent Mail Barcode, CRID/MID, Business Customer Gateway/PostalOne! 

6. Postage and Payment Methods 

7. Postal Software – Data & List Processing 

8. Reply & Return Mail 

9. Mail Preparation & Distribution 

10. Ancillary Service Endorsements – ASE 

11. Address Change Service – ACS 

12. Canadian Post 

13. International Mail 

(Optional) 

2

Postal Workout Program 

• Workout – Viewing Instructions 

– You can view and listen to a exercise in your own timeframe 

– The exercise presentation can be paused, stopped, backed up at any 

time 

– You can do these exercises individually or in groups 

– The slides are available as a .pdf that you can print for reference 

– Each individual must fully complete the On-line Achievement 

Certification Quiz to finish the exercise 

– Look for the KEY slide in every exercise 

• Provides information on key postal elements that are affected by the exercise 

– Postage 

– Mailpiece Design 

– Barcodes, etc. 

• Displays examples of the impact 

3

Training Objective 

• Types of postage 

– Class of Mail 

– Piece, Piece and Pound, Zone Prices 

– Reply Mail 

• Define each payment method 

– Precanceled Stamps 

– Meter imprint 

– Permit Imprint 

• Postage Statement 

– Business Customer Gateway 

4

Postage Prices 

Are determined by: 

― Class 

― Category 

― Addressing 

― Barcodes 

― Distribution 

Density 

RMS Rate chart is available on insideRRD in the RMS Postal Information Library - 

Link - http://inside.rrd.net/insiderrd/pages/products_services/response_marketing/marketing_programs_for_sales/rms_postal_info_lib/postage.aspx 

5

Class of Mail and Postage 

• Express Mail ® 

– Per pound, based on zone and service, or Flat Rate Envelopes/boxes 

• Priority Mail ® 

– Per pound, based on zone, or Flat Rate Envelopes/boxes 

• First-Class Mail ® 

– Per ounce 

• Standard Mail ® , Commercial and Nonprofit 

– Up to 3.3 ounces for the same price 

– 3.3 to 15.994 ounces: Piece and pound price 

– Drop Shipment Discounts 

6

Processing Category and Postage 

• Some processing categories have separate prices 

• First-Class Mail 

– Postcard, Letters, Flats, and Packages 

• Standard Mail Commercial and Nonprofit 

– Letters, Flats and Marketing Parcels 

• Bound Printed Matter 

– Flats and Parcels 

7

Postage Calculations and Statements 

• Mail.dat files are generated in List Processing through the sortation 

software 

– Information includes job specific data and facility information 

• Mail.dat may be modified in Monticello 

– Split shipments, drop shipment data, etc. 

• Mail.dat files are uploaded to the USPS PostalOne! Site 

• The USPS calculates the postage based on the information in the 

Mail.dat files. 

– There are no more hard copy Postage Statements 

– Estimated postage can be obtained before the job is completed 

• The files are uploaded and used for USPS acceptance and 

verification 

8

Express and Priority Mail 

• Flat rate packaging available free from USPS 

• Postage is paid by weight and zone 

• Retail, Commercial, and Commercial Plus prices 

– Different qualifications 

No separate processing 

categories 

Except for Flat 

Rate packaging 

9

Postcard Postage Comparison 

First-Class Mail is the only class with Postcard prices 

• Standard Mail Commercial 

Letter drop shipment prices 

(DNDC/DSCF) are less than 

First-Class Postcard rates 

• Standard Nonprofit letter prices 

are less than First-Class 

Postcard rates 

Consider transitioning to a Standard 

Mail Folded Self-Mailer, to obtain 

additional Drop Ship discounts and 

pick-up additional real-estate to 

convey clients messaging. 

First-Class 

Automation Nonautomation 

Postcard 

5-Digit 3-Digit Mixed Presort Single 

Barcoded Barcoded AADC AADC Piece 

0.234 0.246 0.246 0.258 0.281 0.330 

Letter Prices 

Standard Automation Machinable 

Entry 5-Digit 3-Digit AADC Mixed 

AADC 

AADC Mixed 

AADC 

None 0.247 0.266 0.266 0.282 0.274 0.290 

DNDC 0.214 0.233 0.233 0.249 0.241 0.257 

DSCF 0.204 0.223 0.223 - 0.231 - 

Nonprofit Automation Machinable 

Entry 5-Digit 3-Digit AADC Mixed 

AADC 

AADC Mixed 

AADC 

None 0.135 0.154 0.154 0.170 0.162 0.178 

DNDC 0.102 0.121 0.121 0.137 0.129 0.145 

DSCF 0.092 0.111 0.111 - 0.119 - 

10

First-Class Mail Letters 

• 3-Digit and AADC same price 

– Does not change mail preparation 

• Second Ounce free – 

– No additional cost for discounted mail – Automation and Presort 

– New price for Residual from Auto or Presort Mailings 

– Third ounce still has 2 increments of $0.125 

– Nonmachinable Surcharge is still $0.20 

First-Class 

Letters 

Weight Automation Machinable Residual Single 

Piece 

Not Over 5-Digit 3-Digit AADC Mixed Presort From Auto or Single 

Ounces Barcoded Barcoded AADC Presort Mailings Piece 

1 0.360 0.384 0.384 0.405 0.433 0.48 0.46 

2 0.360 0.384 0.384 0.405 0.433 0.48 0.66 

3 0.610 0.634 0.634 0.655 0.683 0.86 

3.5 0.735 0.759 0.759 0.780 0.808 1.06 

11

First-Class Mail – Flats and Packages 

• Postage by ounce 

• Second ounce is not free 

• ADC and Mixed ADC 

are separate prices 

• No "nonmachinable" 

allowed 

12

Standard Mail Letters 

• Letters 

– Automation – ECR and Automation 

• Up to 3.3 ounces for the same price 

• Heavy Letter Automation between 3.3 and 3.5 ounces: Piece and Pound price 

– Nonautomation - ECR, Machinable and Nonmachinable 

• Up to 3.3 ounces for 

the same price 

• 3.3 to 15.994 ounces: 

Piece and pound price 

Standard Mail 

Nonprofit has the 

same price 

categories 

13

Standard Mail Flats 

• Flats 

• Up to 3.3 ounces for the same price 

• 3.3 to 15.994 ounces: Piece and pound price 

• "Nonmachinable" not allowed 

Standard Mail 


same price 

categories 

14

Standard Mail Piece and Pound Price 

• Two portion postage price: 

– Per Piece price PLUS the 

– Per Pound price 

• Based on the actual weight of the mailpiece in pounds 

• Estimate Postage 

– Excel Spreadsheet tool on RMS Postal Information Library 

Standard Mail 


same price 

categories 

15

Standard Mail Drop Shipment Discounts 

• For mail that is prepared, shipped and entered at a USPS Drop Ship 

location - The USPS gives a postage discount PER PIECE 

• Discount is the same for Standard Mail Commercial and Nonprofit 

• Freight is charged per WEIGHT 

• The heavier the piece, the less the overall savings 

• Monticello/Dynamail, part of our postal processing software, 

determines when drop shipment is cost effective 

16

Nonmachinable Letter Mail 

• Letter mail that is nonmachinable pays more postage 

– No Automation rates 

• Standard Mail – separate price list 

Standard Commercial 

Letters - Nonautomation 

For 

pieces 

3.3 

ounces or 

less: 

• First-Class Mail - Surcharge of $0.20 per piece 

• Only on presort and full price 

Nonmachinable 

Entry 5-Digit 3-Digit ADC Mixed ADC 

None 0.408 0.503 0.537 0.632 

DNDC 0.375 0.470 0.504 0.599 

DSCF 0.365 0.460 0.494 - 

Standard Mail 


same price 

categories 

• Flat size cannot be nonmachinable for First-Class and Standard Mail 

17

USPS Promotion and Incentive Programs 

• OPI (order instructions) must indicate the promotion or incentive discount 

– The correct data must be in the Mail.dat file submitted to PostalOne for the 

credits/discounts to be applied 

– Full-Service does not mean that the client will automatically receive the discounts 

for each promotion/incentive 

• Credits – reduction of total postage based on the credit earned through a 

qualifying count on previous volume 

– Earned Value BRM/CRM credit 

• Discounts – reduction in postage based on the qualification of the individual 

program for items in the mailpiece 

– Mobile Barcode promotions 

– Emerging Technology promotions 

– Picture Permit Imprint promotions 

– Other promotions as specified 

18

Fees 

• The USPS charges fees for the application for a permit imprint number and 

obtaining discounted prices 

– Permit Imprint application 

• $200 one-time fee 

• Permit number must be used at least once every 24 months 

– Annual Presort Fee 

• $200 for Standard Mail 

• First-Class Mail fee is covered by one facility fee 

• Full-Service IMb annual presort fee waiver – January, 2014 

– To qualify - 90% of the mailings under the permit number must be IMb Full-Service 

19

Reply Mail Choices 

Reply Mail has different postage requirements and prices 

A 

PLACE 

STAMP 

HERE 

C 

BUSINESS REPLY MAIL 

FIRST-CLASS MAIL PERMIT NO 1234 CLEVELAND OH 

NO POSTAGE 

NECESSARY 

IF MAILED 

IN THE 

UNITED STATES 

AC B 

ABC INDUSTRIES 

1220 LAKESIDE AVE E 

CLEVELAND OH 44114-1234 

POSTAGE WILL BE PAID BY ADDRESSEE 




Courtesy Reply Mail (CRM) 

A 

Business Reply Mail (BRM) 

C 

NO POSTAGE 

NECESSARY 

IF MAILED 

IN THE 

UNITED STATES 

NO POSTAGE STAMP NECESSARY 

POSTAGE HAS BEEN PREPAID BY 




NO POSTAGE STAMP NECESSARY 

POSTAGE HAS BEEN PREPAID BY 




Meter Reply Mail (MRM) 

Permit Reply Mail (PRM) 

20

CRM, MRM, PRM 

• All pay Full First-Class Mail single piece prices 

• Mailpiece design requirements 

• Courtesy Reply Mail - CRM 

– Adhesive Stamp 

– Applied by respondent 

• Meter Reply Mail - MRM 

– Metered with no date 

– Preapplied by client/mailer 

• Permit Reply Mail - PRM 

– Postage prepaid by mailer at the time of mailing 

• First-Class outgoing mail only 

21

Reply Mail Applications and Fees 

• BRM/QBRM 

– Application form PS 3615 for Permit Number 

No Fee 

• QBRM 

• Annual fee of $200 

– Application Form 6805 to the postmaster or manager, Business Mail 

Entry at the Post Office to which the QBRM pieces are to be returned. 

• CRM and MRM do not have any applications 

• PRM 

– Authorization through the district manager of Business Mail Entry at the 

office where the permit imprint account is held 

22

BRM/QBRM Postage and Fees 

• Annual Permit Fee $200 

• Accounting Fee annual $635 

or quarterly $2,125 

• Two BRM/QBRM groups 

– High Volume and Basic 

• Postage and handling fee 

per piece 

– Different for BRM and QBRM 

• Mailpiece design 

requirements 

23

Postage Payment Methods 

• Standard Mail, Nonprofit, and First-Class Mail postage is paid by: 


– Meter imprint 

– Permit imprint indicia 

• Periodicals 

– Does not use any of those methods! 

24

Mailpiece Design 

• Postage Position 

– Parallel to the address direction 

– Above and to the right of the address area 

• Stamps and Meter – upper right corner of mailpiece 

• Permit imprints – upper right of the mailpiece or address area 

Fishing for You 

845 Lure Ln 

Walleye, WI 54301 

Mr. M.T. Nester 

256 Fishing Creek Trl 

Retirement, FL 33045-5504 


845 Lure Ln 

Walleye, WI 54301 

Mr. M.T. Nester 

256 Fishing Creek Trl 

Retirement, FL 33045-5504 

STD 

U.S. Postage Paid 


25

Imitation of Postal Markings & Colors 

• USPS prohibits use of deliberate imitations of postal markings 

– Wording - Color 

– Location - Numbering 

• Examples include: "Express Mail", "Priority Mail", certain 

meter designs 

• Requires clearance by Direct Mail Specialist 

• Green Diamonds are ONLY for First-Class Mail 

– Any color of green! 

• Other colors may be used for Standard Mail 

26

Background Clear Space 

• Clear Space 

– A clear space must be available on all mail for the address, 

postage (permit imprint, postage stamp, or meter stamp), 

postmarks, and postal endorsements 

• Free of background designs and legible 

– Metered mail has a 2D barcode 

• All requirements for barcode readability apply 

27

Precanceled Stamps 

• Precanceled stamps can be used for: 

– Presorted First-Class Mail 

– Standard Mail Commercial and Nonprofit 

1-1/2" 

• Background clear area must be allowed to apply stamps: 

1-1/2" 

– One stamp: 1-1/2" x 1-1/2" 

• May only have ONE precanceled stamp per mailpiece 

– Stamp with Cancellation: 1-1/2" x 4" 

• or more depending on other imprints 

28

Precanceled Stamps 

• Mailpiece must have a domestic Return Address if not canceled 

• Optional to cancel stamps with cancellation mark 

• Stamps are purchased in rolls of 500, 3,000 and 10,000 stamps 

– Cannot return unused stamps 

• Prices: 

• Standard Mail 10¢ 

• Nonprofit 5¢ 

• First-Class Mail - Postcards: 15¢ Letters and Flats: 25¢ 

• Difference between the stamp price and final postage is paid 

through a permit account with the postage statement 

29

Adhesive Stamps 

• Adhesive Stamps are: 

– Full price First-Class Mail stamps without a price 

– Stamps with a price (denominated) 

• May use more than one stamp per mailpiece 

• Standard Mail and discounted First-Class Mail 

– Must be canceled 

– Must add up to the amount of the appropriate precanceled stamp 

• Full price First-Class mail 

– Do not need to be canceled 

30

Meter Imprint 

• Postage printed directly on envelope 

• Background clear area of 3 1/2" x 1 1/2" is required 

– More depending on other imprints designs 

• Must be legible 

– Printed in fluorescent ink 

– Check with facility for ink color – red or black 

– Must pass barcode background reflectance 

• Class Marking in Meter imprint 

• Date of Mailing 

– Required for First-Class Mail 1 1/2 " 

– Not used for Standard Mail 

3 1/2 " 

31

Permit Imprint Indicia Regulations 

• Size 

– Minimum: 1/2" x 1/2" 

– Maximum Size 1 1/2" x 1 1/2" 

• Font 

– Text minimum of 4 point - must be readable 

– RMS Standard: UPPER CASE 

• Background 

• Approved Option: Upper/Lower case 

– No copy or patterns in the permit imprint indicia 

– No color or a solid color is acceptable 

1/2" 

PRSRT STD 

U.S.POSTAGE 

PAID 

ABC CO 

PRSRT STD 

U.S.POSTAGE 

PAID 

ABC CO 

1 1/2" 

32

Permit Imprint Indicia Elements 

1. Class Marking 

2. "U.S. Postage Paid" 

3. Permit holder information 

– Company Style 

– Origin Styles 

PRESORTED 

STANDARD 

U.S. POSTAGE 

PAID 

ALICIAS COOKIE 

BAKERY 

Strict spelling and punctuation 

Rule or box around permit imprint indicia may be omitted 

33

Permit Imprint Indicia – Class Marking 

• First-Class Mail 

– PRESORTED FIRST-CLASS MAIL 

– FIRST-CLASS MAIL (Single Piece mailing only) 

• Standard Mail 

– Commercial Mail 

• STANDARD or STD 

• PRESORTED STANDARD or PRSRT STD 

– Nonprofit Mail 

• NONPROFIT ORGANIZATION or NONPROFIT ORG or NONPROFIT 

• Package Services 

– BOUND PRINTED MATTER or BPM 

– LIBRARY MAIL 

– MEDIA MAIL 

– STANDARD POST 

• Priority Mail – PRIORITY MAIL 

• Periodicals do NOT use permit imprint indicias 

34

Permit Imprint Indicia Styles 

• Company Style 

– RMS Standard 

– No permit number or origin shown 

– Mailpiece must have complete Return Address 

• Origin Styles 

1. Show City, State of origin 

• permit number 

OR 

2. Shows ZIP Code of origin 

• permit number 

Presorted 

First-Class Mail 

PRSRT STD 

U.S. POSTAGE 

PAID 

ABC COMPANY 

U.S. Postage Paid 

City, ST 

Permit No. nnn 

Strict spelling and punctuation 

Rule or box around permit imprint 

indicia may be omitted 

Nonprofit Org 

U.S. POSTAGE PAID 

Mailed From ZIP Code NNNNN 

Permit No. NNN 

35

Permit Imprint Indicia Designs 

• Special Designs such as "Eagles", must be USPS approved 

– Maximum Size with designs to the left: 1-1/2" x 4" 

– Cannot resemble a postage stamp or meter imprint 

• References on mailpiece to Expedited Handling require the permit 

imprint indicia 

– to have class marking bolder or more prominent than other text 

– include a clear space of at least 3/8 inch around the entire indicia 

PRSRT STD 


COMPANY NAME 

36

Permit Imprint Indicia Application 

• Permit number must be purchased 

– For postage paid with a Permit Imprint Indicia 

– From each post office of mailing 

• Unless under the IMb Full-Service waiver 

– For each client 

• Customer Name on USPS Application form 3615 used to 

purchase permit number must match the company name in a 

company style permit imprint indicia 

Allison's Better Cooking Company 

PRSRT STD 

U.S. PRSRT POSTAGE STD 

U.S. PAID POSTAGE 

PAID 

Allison’s Allison's Better 

ABC COMPANY 

Cooking Company 

37


• When obtaining the permit number, on USPS Application 3615, 

check all the boxes for 

– First-Class Mail, Standard Mail, Package Services and Company 

Permit Imprint (section B, item 1) 

– There is no additional cost for obtaining the permit number for all the 

classes of mail 

X 

X X X 

X 

38


• The Applicant Information needs to be that of the client 

– The address that will be linked through their CRID to the permit number 

– Preferably the contact person is the client's BSA for that CRID 

39

Return Address vs. Permit Holder 

Return Name and Address 

– From Copy 

• Does NOT have to match Permit 

Holder Name 

Permit Holder Name 

– From USPS 3615 

• Company Style Permit Imprint Indicia 

• Return Address must know where 

mailing statements are kept 

Allison's Best Confectionaries 

ABC Company 

Allison's Best Confectionaries 

123 Sugar Street 

Sweetest, SC 21455-3587 

PRSRT STD 


ABC Company 

Delivery Name 

Delivery Address 

Delivery City, ST ZIP+4 

40

Nonprofit - Return Address vs. Permit Holder 

Authorization Name 

– From USPS Letter 

• Return Name/Address, Internal 

Name/Address, Check requests 

Permit Holder Name 

– From USPS 3615 

• Company Style Permit Imprint indicia 

ABC Org 

A Better Contribution ORG 

123 Any St 

DePere, WI 54115-0080 

A Better Contribution ORG 

123 Any Street 

DePere, WI 54115-0080 

NONPROFIT 


ABC ORG 

Delivery Name 

Delivery Address 

Delivery City, ST ZIP+4 

41

Business Customer Gateway 

• Electronic way to communicate 

with the USPS 

– Portal gives a single entry point for 

USPS online business services 

• All users can interface with the 

USPS via Business Customer 

Gateway online Portal 

• Clients can use the portal for – 

– Managing Permits 

– Retrieving Mailing Statements & 

Reports 

– Managing CAPS Accounts 

42

Gateway - Mail Preparer Access View 

• As a Mail Service Provider we will be able to view mailing 

information for the mailings you are preparing, including: 

– Postage statements 

– Supporting documentation 

– Other mail status reports 

PostalOne! Dashboard 

43

Gateway - Electronic 3602 Statement 

• View Postage Statements online 

Electronic Statement .pdf 

• Download the Postage 

Statement as .pdf, Excel or 

.csv file 

• Use Estimated Postage 

statements to review postage 

needs 

Example of page 1 

44

Impact 

• Mailpiece Design 

– Postage in the incorrect location or unreadable 

• Mailing may be denied 

• Incorrect postage on the mailpiece 

– Additional postage may be needed 

– Overpayment may not be refunded 

• Depends on how the mailpiece is handled 

• Inactive permits 

– Mailing is held until permit issues are resolved 

45

Training Objective 

• Types of postage 

– Class of Mail 

– Piece, Piece and Pound, Zone Prices 

– Reply Mail 

• Define each payment method 


– Meter Imprint 

– Permit Imprint 

• Postage Statement 

– Business Customer Gateway 

46

RMS Postal Workout Exercise 

RR Donnelley has won the Pillar Bank Friends 

program for about 1mm pieces 

The package consists of a 2/1 #10 Closed Faced OE, 

2 page 2/1 ProteusJet Duplexed Letter w/Lift Note 

Mailing as Standard Class - Pillar Bank submits copy 

with the following permit imprint 

U.S. POSTAGE 

PAID 

PILLAR BANK 

47


What would you do next? 

48


• Using the RMS checklist you discover 

that the Permit Imprint does not have 

the Class of Mail listed in the permit 

area 

• Without the Class of Mail, the mailing 

can only receive full price First-Class 

Mail rates 

• You advise Pillar Bank that the permit 

copy needs to change to include the 

correct Class of Mail requested 

• You also advise them that a full return 

address is required 

49


• Pillar Bank agrees to have the permit copy 

changed and adds their return address 

– The Bank can now receive Standard Mail prices 

• Including Drop Shipment discounts at a rate of 

$0.033/pc NDC and $0.043/pc SCF 

• Participate and receive CoPal Savings 

– The difference in postage between Standard Mail 

and full price First-Class Mail is over $250,000 

50


Kingston Animal Society is mailing an Event 

Reminder Notice to members that registered for 

their “Your Friend” dinner and dancing event. 

The Reminder Notice is about 1mm pieces and is a 

Postcard Format 4" x 6 1/2" 4pc / 2pc 

KAS is expecting to mail at the USPS Postcard Rates 

51


What would you do next? 

52


• Using the RMS checklist you identify their requested 

format size is larger than the maximum First-Class 

Postcard size of 4 1/8" x 5 7/8" 

• You provide KAS the following options - 

– Decrease the format size to fit into the First-Class 

maximum size 

– Mail the same format size card at Nonprofit Letter rates 

• Lower postage rates as compared to Postcard rates 

– Increase the format size of the card or change to a 

Folded Self-Mailer and mail at Nonprofit Letter rates 

• Lower postage rates as compared to Postcard rates 

53


• KAS decides to take advantage of the additional real-estate 

and mail a larger card at Nonprofit rates 

– KAS can now receive Standard – Nonprofit Mail prices 

• Including Drop Shipment discounts at a rate of $0.033/pc 

NDC and $0.043/pc SCF 

• Participate and receive CoPal Savings 

– The difference in postage between Standard – Nonprofit Mail 

and Postcard Mail is on average $0.105/pc or $105,000 

– RMS has increased revenue due to format change 

54

To Complete the 

RMS Postal Workout 

# 6 – 

Postage & Payment Methods 

Please access and complete 

the On-line Achievement 

Certification Quiz 

Thank You ! 

55

RMS Postal Training - RR Donnelley

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