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P500 Express Mail
Summary
P500 describes the payment methods for Express Mail, including how to set up an Express Mail Corporate Account.
1.0 Basic Information
1.1Payment Method
A mailer of Express Mail items may pay postage with adhesive stamps, with meter stamps, or through an Express Mail corporate account. Federal agency and USPS official Express Mail may use the appropriate indicia, subject to E060. The mailer is responsible for proper payment of postage. Customers wishing to manifest Express Mail items may request authorization to use an Express Mail Manifesting System according to the procedures in P910.6.0.
1.2Prepaid Reply Postage
Meter stamps may be used to prepay reply postage on any Express Mail shipment. The mailer must place meter stamps, sufficient to prepay postage in full, on the envelope, tube, or other mailing container that bears the return address of the meter license holder. Reply mail prepaid with meter stamps is delivered only to the address of the meter license holder. If the address is altered, the mail is held for postage.
1.3Pickup Fee
The pickup fee is assessed and paid as described in D010.
2.0 Corporate Account
2.1Availability
A corporate account is available to any mailer, subject to 2.2 through 2.5 and the terms on Form 5639. The address provided by the mailer on Form 5639 must be valid as a condition of an account being opened.
2.2Postage Liability
The mailer must pay all postage and fees resulting from shipments presented bearing the assigned account number while the account is active and up to 30 days after the account is closed. After that, any shipment bearing the account number is refused and returned to the mailer.
2.3Minimum Balance
[10-1-03] For opening and maintaining an account, the mailer may do any of the following:
a. Participate in the Centralized Account Processing System (CAPS), which requires no initial deposit and no maintenance of a minimum balance.
b. Use a personal or business credit card, which requires no initial deposit and no maintenance of a minimum balance.
c. Make an initial deposit with cash or by check of $250, or the total postage and fees expected during the first 4 weeks of account usage, whichever is higher. After that, the minimum balance in the account must equal an average week’s postage and fees, or $100, whichever is higher, calculated as follows:
(1) If the completed postal quarter is quarter one, two, or three, the average week’s postage and fees is determined by dividing by 12 the actual postage and fee activities during the last completed postal quarter.
(2) If the completed postal quarter is quarter four, the actual postage and fee activities are divided by 16.
2.4USPS Report
By the 10th calendar day after the close of the postal accounting period, the mailer receives an activity statement that includes the account’s beginning and ending balances; deposits; postage and fees deducted; and number of shipments with an itemized list of each mailed shipment, showing mailing date, label number, origin and destination ZIP Codes, and postage and fees.
2.5Closing Account
The USPS may close an account with 10 days’ written advance notice to the mailer if the ending balance on the activity statement is below the minimum amount, as calculated in 2.3 for two consecutive accounting periods. Failure to keep the required minimum balance is indicated when an amount appears in the “Deposit Required Based on Previous Mailing Activity” block of the activity statement. The USPS may also close an account with 10 days’ written advance notice if the account remains inactive for three consecutive accounting periods, unless special circumstances warrant otherwise (e.g., a seasonal mailer). The USPS reserves the right to refer closed corporate accounts with negative balances to a national check collection agency.
DMM Issue 58 Updated 12-9-04