What is metered letters: How your business saves time and money.

Metered letters are a modern alternative to using traditional adhesive stamps for businesses that handle significant mail volume. This method involves using a specialized machine, a postage meter, to apply official, prepaid postage directly onto envelopes or labels. Automating the process of calculating and applying postage allows organizations to streamline communications and achieve greater efficiency in the mailroom. Adopting a meter system transforms a time-consuming manual task into a quick, uniform function.

What Exactly Are Metered Letters?

A metered letter is a piece of mail bearing an electronically printed postage mark, known as an indicium, in place of a physical stamp. This indicium is accepted by the postal service as legal proof that the required postage has been paid. The printed mark contains standardized information, including the mailing location, the date the postage was applied, and the exact postage amount.

The indicium also typically includes a unique barcode or digital impression, which facilitates automated processing by postal service machinery. The metered impression serves as an official postmark, eliminating the need for the postal service to cancel a physical stamp.

How Metering Works

A postage meter relies on a secure, digital connection to a vendor’s server, allowing it to act as a prepaid postage account. Before mailing, the meter must be credited with funds, which are downloaded electronically from the authorized vendor. This funding process is typically done online, updating the meter’s internal memory with the current balance and postal rates.

When an item is ready to be mailed, it is placed on the meter’s integrated scale. The scale automatically weighs the piece and calculates the exact postage required based on the selected mail class. The machine then prints the indicium directly onto the envelope or onto an adhesive tape for packages. The meter immediately deducts the amount used from the digital balance and tracks the usage, providing an accurate record of expenditure.

Key Advantages of Using Metered Mail

Businesses adopt metered mail primarily for operational efficiency, eliminating the time spent manually weighing, affixing, and accounting for physical stamps. The integrated scale ensures the mailer pays the precise postage amount, preventing overpayment and the risk of mail being returned due to insufficient postage. Many modern meters also include automated sealing functions, accelerating the preparation of high-volume mailings.

Significant financial benefits arise from the discounted rates offered by the postal service for metered mail, particularly for First-Class letters. Since metered mail is already dated and prepared for faster processing, the postal service offers a commercial rate that is lower than the retail price of a stamp. This discount can result in substantial savings for organizations that mail hundreds or thousands of pieces monthly.

The system provides better financial control and transparency through detailed reporting and usage tracking. Businesses can generate reports from the meter showing postage spending by department or cost center, eliminating the need to reconcile receipts for stamp purchases. Furthermore, the uniform, machine-applied indicium lends a professional and standardized appearance to all outgoing correspondence.

Setting Up a Postage Meter System

Acquiring a postage meter typically involves leasing the equipment from an authorized postal technology vendor rather than purchasing it outright. The postal service maintains strict control over these devices to prevent fraud, requiring the meter to be licensed and registered to the specific business location. The vendor manages the technical aspects of registration and handles the necessary application paperwork.

Once approved, the vendor installs the meter and ensures it is connected to the network for secure fund downloads and rate updates. Businesses must also secure necessary supplies, such as specialized ink cartridges and adhesive meter tapes, which are proprietary to the specific machine model. The meter should be located in a secure area with reliable connectivity to allow for seamless crediting of the postage account and automatic rate adjustments.

Comparison to Traditional Stamped Mail

The difference between metered mail and traditional stamped mail is most apparent in security, cost, and processing. Stamped mail requires the purchase and physical storage of adhesive stamps, which presents a security risk susceptible to loss or theft. Metered mail operates on a digitally secured, prepaid fund accessible only through the registered machine.

From a cost perspective, traditional stamps are purchased at the full retail rate. Metered mail is eligible for commercial base discounts, resulting in lower per-piece mailing costs and making it a more economically sound option for volume mailers. Stamped mail requires manual postmarking by the postal service to cancel the stamp, but the metered indicium is automatically dated and contains a unique identifier, allowing it to bypass that step and move faster through the sorting network.