USPS Nets Deal with Discover Financial
WASHINGTON, DC—The U.S. Postal Service (USPS) 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 approved the agreement, the first such deal 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 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.