Policies, Procedures, and Forms Updates

Manuals

DMM Revision: Automated Clearing House Debit Added as New Method of Payment for Express Mail Corporate Account Customers

Beginning October 1, 2008, the Postal Service™ began permiting an Automated Clearing House (ACH) debit as a new method of payment for Express Mail® Corpo­rate Account (EMCA) customers and eliminate the option to open new local trust accounts. The ACH system is a secure, private network that connects banks to one another by way of the Federal Reserve Board. This network enables electronic payments, such as ACH debits, to be handled and processed. EMCA customers will continue to have a total of three options to fund their accounts: partic­ipate in the Centralized Account Processing System (CAPS), use a personal or business credit card, or authorize the USPS® to originate an ACH debit from a specified bank account. Existing EMCA customers who deposit cash and checks in local trust accounts will be transitioned to electronic payment methods. Details of this process will be directly communicated to current EMCA customers.

We are also revising Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) by adding provisions to close an EMCA funded by ACH debit payments.

Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)

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400 Commercial Parcels

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410 Express Mail

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414 Postage Payment and Documentation

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2.0 Corporate Accounts

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[Revise the heading and text in 2.4 as follows:]

2.4 Payment Method

For opening and maintaining an account, the mailer may do any of the following:

a. Use a personal or business credit card.

b. Authorize the USPS to originate an Automated Clear­ing House (ACH) debit from a specified bank account.

c. Participate in the Centralized Account Processing System (CAPS) debit only if combined with other PostalOne! accounts such as permit imprint, Period­icals, and Business Reply Mail.

d. Maintain a minimum balance in the account equal to an average week’s postage and fees, or $100, which­ever is higher (existing EMCA customers who deposit cash and checks in local trust accounts).

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2.6 Closing Account

[Revise the text in 2.6 as follows:]

The USPS may close an account with 10 days’ written advance notice to the account holder (and reserves the right to refer closed corporate accounts with negative bal­ances or unpaid mailings to a collection agency) for any of the following reasons:

a. The ending balance on the mailing activity statement is below the minimum balance required for two con­secutive months.

b. The account remains inactive for three consecutive months, unless circumstances warrant otherwise (e.g., a seasonal mailer, positive balance, etc.).

c. There are unpaid mailings. The closing of an account due to repetitive unpaid mailings caused by the rejection of the payment by an account holders’ credit card company or ACH institution is subject to review by the manager, Business Mail Entry.

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We will include these revisions in the next update of the online DMM on Postal Explorer® at http://pe.usps.com and in the next printed edition on the DMM.