General FAQs

Why are rates going up again?

The costs of doing business — for things like fuel, transportation, utilities, labor, and health care benefits — have continued to increase. Without an increase to keep up with rising costs, we face significant losses that could adversely affect mail service.

Many people do not know that postal operations are not subsidized by tax dollars. We rely on the sale of postal products and services to cover our operating costs.

When will the new rates take effect?

The new rates go into effect June 30, 2002.

Why don’t you make the price of a stamp an even $0.40?

No one should have to pay more than necessary. We want to make sure the mail remains a great value. An increase of more than $0.03 in the price of a First-Class Mail stamp would impose an unfair share of the burden of operating the Postal Service on First-Class Mail service users. A $0.03 increase results in a more equitable distribution of postal costs among all mail classes.

Also, the majority of retail customers purchase their stamps not in singles but in booklets of 10 or 20 stamps so pennies are not usually involved in the transaction. A booklet of 10 stamps will increase only 30 cents from $3.40 to $3.70 and the booklet of 20 stamps will increase from $6.80 to $7.40.

When will new stamps be available?

New $0.37 First-Class Mail stamps will be available June 7. A new $0.03 Star stamp will be available in mid-June that can be added a to 34-cent stamp to make up the First-Class Mail letter rate. Buy stamps as early as possible. There are many convenient options to purchase stamps — by fax, by mail, by phone at 1-800-STAMP24, at the Post Office, through retail lobby vending equipment, or over the Internet at www.usps.com.

Did the terrorist attacks or the anthrax incidents have any bearing on the filing of the rate increase?

No. The Board of Governors approved the filing of this rate case on September 10, 2001, just before the terrorist attacks on September 11 and the subsequent anthrax mailings.

I thought postage rates were not scheduled to increase prior to September 2002. Why are they going up now?

The Postal Service reached a settlement agreement with the mailing industry to raise postal rates on June 30, 2002 — three months earlier than originally expected. The Board of Governors approved the filing of the omnibus rate case just before the terrorist attacks on September 11 and the subsequent anthrax mailings. In light of those events and a slowing economy, the independent Postal Rate Commission suggested settling the case to ensure the Postal Service can continue to provide universal service at reasonable rates to every household and business. The rate setting process typically takes more than a year to complete, with 10 months of proceedings at the Commission, during which it considers testimony from customers and others before issuing a Recommended Decision. When the current proposals were filed by the Postal Service, rates were not expected to increase prior to September 2002.

Do you think postage is getting too expensive?

At $0.37 our single-piece First-Class Mail letter rate still is among the lowest of major industrialized nations. Citizens in Japan, for example, pay the equivalent of $0.62 to mail a letter within their own country — an area somewhat smaller than California in square mileage.

Our record is excellent. We move more than 46 percent of the world’s cards and letters, delivering more than 200 billion pieces of mail a year.

Will International rates also increase?

No. International rates are determined separately from domestic rates and will not increase until January 2003.

Where can additional information be found regarding the new rates and changes?

Additional information is available on the Web site at www.usps.com, or by calling 1-800-ASK-USPS (1-800-275-8777).

First-Class Mail FAQs

Will First-Class Mail letters containing odd-shaped items be mailable?

Yes. However, they will be charged the nonmachinable surcharge in addition to postage if they weigh 1 ounce or less.

The nonmachinable surcharge will be $0.12 for pieces mailed at single-piece rates and $0.055 for pieces mailed at Presorted and automation rates.

What is the nonmachinable surcharge?

The current nonstandard surcharge will be expanded to include certain physical criteria that could make a mailpiece nonmachinable. Pieces that are nonmachinable are excluded from automated processing and must be handled manually. Nonmachinable pieces also may impede mail flow or damage the mail or mail processing equipment. Manual pieces are considerably more costly to process than machinable letters. Nonmachinable criteria for letter-size pieces will be listed in new DMM C050.2.2. The nonmachinable surcharge will apply to single-piece and Presorted rate letters that weigh 1 ounce or less and meet one or more of the criteria in that section. Also, the nonmachinable surcharge will apply to letter-size pieces (but not card rate pieces) for which the mailer has chosen the manual only (do not automate) option.

Will the nonmachinable surcharge apply to postcards?

No, the nonmachinable surcharge does not apply to any pieces mailed at First-Class Mail card rates. However, cards mailed at Standard Mail rates could be subject to the surcharge.

Will the nonmachinable surcharge apply to flats and parcels?

Yes, it will apply to all First-Class Mail flats and parcels weighing 1 ounce or less.

Is a key affixed to a card or piece of cardboard and inserted in an envelope considered a nonmachinable item and therefore subject to the surcharge?

A "non-bulky key" (such as a house key) firmly affixed to a piece of stiff paper inserted into an envelope would be machinable and no surcharge would apply. However, a bulky key (such as a vehicle key with thick plastic at the top) in an envelope would pay the surcharge, regardless of whether or not that key was affixed to anything, due to the uneven thickness of the piece.

Will Delivery Confirmation service or Signature Confirmation service be allowed for use with First-Class Mail service?

Yes, for First-Class Mail parcels only.

What is a First-Class Mail parcel?

For the purposes of adding Delivery Confirmation or Signature Confirmation to First-Class Mail, a parcel will be defined as any piece that has an address side with sufficient surface area to fully display the delivery address, return address, postage, markings and endorsements, and Delivery Confirmation service or Signature Confirmation service label. The parcel will be required to be in a box or, if not in a box, will be required to be more than 3/4-inch thick at its thickest point.

Priority Mail FAQs

Why are Priority Mail rates over 1 pound being zoned?

As with all classes of mail, Priority Mail rates must cover the increasing costs associated with processing, transportation, and delivery. Weight increments over 1 pound will be zoned to more accurately reflect actual costs to the Postal Service for transportation and handling.

What will be the price of a Priority Mail flat-rate envelope?

The rate for the flat-rate envelope will be $3.85.

Will there be a new Priority Mail flat-rate envelope?

A new Priority Mail flat-rate envelope will be available to use when the rates change. The size of the envelope will remain the same. The current Priority Mail flat-rate envelope should be used up to the rate change. Effective June 30, 2002 Priority Mail flat-rate envelopes with 2-pound rate markings cannot be used.

Express Mail FAQs

What is the most significant change for Express Mail service?

The most significant change to the Express Mail service will be to price the flat-rate envelope at the 1/2-pound rate, which is the lowest available rate for each Express Mail service offering.

The rate for the flat-rate envelope will decrease for Post Office to Addressee service from $16.25 to $13.65, but the size of the envelope will remain the same. The Express Mail flat-rate envelope will continue to be available from the Postal Service.

Periodicals FAQs

Was the Periodicals Ride-Along experiment a success?

Yes, the Periodicals Ride-Along experiment was successful, and will be made a permanent classification. There will be no changes in the current standards for eligibility.

What are the major changes for Periodicals?

Introduction of a new destination area distribution center (DADC) advertising pound rate and a per piece discount for each Outside-County addressed piece. The new DADC discount will be $0.002 per addressed piece.

In addition, two new per addressed piece pallet discounts are introduced. The first is a $0.005 per addressed piece discount for each addressed nonletter-size piece (flat-size and irregular parcel) prepared in packages on pallets. The second is a $0.015 destination entry per piece pallet discount for each addressed nonletter-size piece (flat-size and irregular parcel) prepared in packages on a destination entry pallet. The discounts will not apply to pieces in sacks on pallets or in trays on pallets. Palletized addressed pieces could claim either $0.005 or the $0.015 per-piece discount (depending on the entry point), but not both.

Standard Mail FAQs

Is there any difference between the nonmachinable surcharge for Standard Mail service as opposed to First-Class Mail service?

The criteria are the same. The nonmachinable surcharge will apply to Presorted rate letter-size pieces (including cards) that weigh 3.3 ounces or less and meet one or more of the nonmachinable criteria in new DMM C050.2.

Unlike in First-Class Mail, where the nonmachinable surcharge will apply to flats, the Postal Service is not adding a nonmachinable surcharge to Standard Mail flats.

The nonmachinable surcharge will be $0.04 per piece for regular rate pieces and $0.02 per piece for Nonprofit rate pieces. The nonmachinable surcharge does not apply to ECR rates.

Could the nonmachinable surcharge apply to residual pieces from a Standard Mail automation flats mailing?

Any piece mailed at the Presorted letter piece rate that meets one or more of the criteria in new DMM C050.2.2 would be subject to the nonmachinable surcharge. This includes pieces that are residual pieces from any automation mailing, including a mailing of automation flats if they are mailed at Presorted letter rates.

For example, a barcoded piece that is 8-1/2 by 5-1/2 inches and bears an address parallel to the shorter edge could be mailed as a Standard Mail automation flat. Pieces in this mailing that cannot be barcoded can be mailed at Presorted rates; the mailer would then have the option of paying the letter piece rate plus the nonmachinable surcharge (because the address is parallel to the shorter dimension) or the nonletter piece rate. Mailers also have the option of mailing residual pieces at the First-Class Mail single-piece rate.

Will the nonmachinable surcharge apply to folded self-mailers held together with a staple?

Only if the self-mailer fits one or more of the nonmachinable criteria in new DMM C050.2.2, then it would be subject to the surcharge. The use of a staple in and of itself does not subject the piece to the nonmachinable surcharge.

Will the nonmachinable surcharge apply to ECR mailpieces?

No. It applies only to pieces mailed at Standard Mail regular Presorted letter-size piece rates.

Will letters mailed at ECR high density or saturation letter rates be required to have a barcode?

Yes. The new requirement for high density and saturation letters requires pieces mailed at ECR high density and saturation letter rates to be automation-compatible and bear a delivery point barcode. Mailers who choose not to make their letter-size pieces automation-compatible or choose not to barcode will pay the ECR high density or saturation nonletter rate.

Will simplified address pieces mailed at Standard Mail saturation rates be required to be barcoded?

Pieces using simplified addresses will not be required to have a delivery point barcode and therefore will not need to meet the physical standards for automation compatibility to qualify for letter rates.

Has the weight limit for Standard Mail automation letters increased?

The maximum weight limit for automation-compatible letters has increased from 3.3 to 3.5 ounces. The rate charged for pieces that weigh between 3.3 and 3.5 ounces differs slightly from the rate for pieces that weigh 3.3 ounces or less.

Which Standard Mail letters are eligible for heavier weights?

This change applies to all Standard Mail regular and Nonprofit automation letters and carrier route letters and to regular and Nonprofit ECR high density and saturation letters.

Package Services FAQs

What are the changes to Parcel Post service?

Three changes will be made. First, a separate rate will be available for parcels weighing less than 1 pound. Second, Parcel Select pieces will be eligible for no-fee electronic Delivery Confirmation service. The final change will create a DSCF rate for nonmachinable parcels sorted to 3-digit ZIP Code prefixes and entered at destination SCFs. Nonmachinable DSCF Parcel Select pieces will be subject to a surcharge of $1.09 per parcel in addition to the applicable DSCF rate.

What are the changes to Bound Printed Matter service?

There are two major changes to Bound Printed Matter (BPM) rates: separate rates for BPM flats and parcels, and a new POSTNET barcoded discount for single-piece rate and Presorted rate BPM flats. The parcel barcoded discount for BPM single-piece and Presorted rate machinable parcels will remain at $0.03 per piece.

How much is the barcoded discount for Bound Printed Matter Flats?

The discount will be $0.03 and will be available for single-piece and Presorted rate BPM flats up to 20 ounces prepared with a POSTNET barcode.

Special Services FAQs

When will electronic return receipt service be available?

The electronic return receipt service option has been approved. However, it will not be available before fall of 2002.

Did the maximum value for money orders go up?

Yes. The maximum amount increased from $700 to $1,000 for money orders. The domestic money fee for amounts of $0.01 to $500 will be $0.90, and the fee for amounts of $500.01 to $1,000 will be $1.25. The inquiry fee will increase from $2.75 to $3.00 for all money orders, regardless of value. The fee for APO/FPO money orders will remain the same at $0.25.

I currently use the pickup service. Will the price increase?

The fee for pickup service for Express Mail, Priority Mail, and Parcel Post services will increase from $10.25 to $12.50. The fee is per pickup, not per package.

Are there any changes to Delivery Confirmation service or Signature Confirmation service?

First, Delivery Confirmation and Signature Confirmation in both retail and electronic options will be extended to First-Class Mail parcels. The second change is that for Package Services, both Delivery Confirmation service and Signature Confirmation service will be restricted to parcels only and will no longer be available for flat-size mail.