January 22, 2018   |   eBilling and Payments

USPS 2018 Postage Rate Increases: What You Need to Know to Keep Costs Low

On January 21, 2018, the U.S. Postal Service rate increases for domestic mail took effect. With the cost of sending First-Class mail, postcards, and metered letters now increased, this rate change will immediately affect distribution costs for billers across the United States.

2018 Rate Increases: What’s Changing?

Capped by the current Consumer Price Index (CPI), the average 2018 postage rate increase is 1.9%. This average has been calculated based on the individual rate increases for automated and non-automated mail, including:

• Single-piece Letters: 2.1% Increase
• Presorted Letters: 1.6% Increase
• AADC and 5-Digit Automation Letters: 1.3% Increase

The 2018 rate increases shouldn’t come as a surprise to veteran billers—with the exception of a $0.02 decrease in 2016, postage rates for domestic letters have been steadily increasing since 1999. Now that postage for a single 1 oz. letter has reached the $0.50 mark, it’s time for smart utilities to evaluate their current customer communications strategy and consider introducing a cost-effective alternative: eBilling.

Offset Increasing Postage Costs with eBilling Solutions

eBilling offers billers and consumers alike a convenient, paperless, and economical solution to rising postage costs. By encouraging more virtual payments from their customers, utilities can immediately lower their printing and mailing costs while decreasing time to payment.

In order to drive such savings for their business, however, utilities must first motivate customers to adopt eBilling over costly paper bills. This requires a dynamic eBilling solution that is:

• Customized. Cohesive, on-brand eBilling interfaces will enhance virtual communications and encourage customers to make the switch.
• Optimized. When bills can be viewed on any device—from desktops to tablets to smartphones—customers will embrace the convenience of receiving and paying their bills online.
• Compliant. Total PCI and SOC 2 compliance ensures secure access to billing information and peace of mind for customers making virtual payments.

Experience the Power of Paperless with Level One

Level One is an expert billing partner ready to help you transition from paper to paperless, driving savings every step of the way. In the face of rising postage costs, we understand that motivating customers to make the switch to eBilling is crucial; that’s why our rapidly deployable eBilling solution features a user-friendly Customer Self-Service portal that enables them to customize billing preferences and notifications, with an intuitive interface to view bills, bill history, payment status, and other relevant information. Our secure cloud-based platform delivers what you need to quickly transition customers from paper to paperless and begin saving operational costs.

If you’d like to learn more about how an eBilling strategy can drive savings for your business, schedule a conversation with our Level One team today.