***Frequently Asked Questions for Federal Program Agencies (FPA) Making
Postage Payments to the United States Postal Service (USPS)***

**1. Q. What method should an FPA use to make postage payments to the
United States Postal Service (USPS)?**

**1. A.** The Federal Program Agency (FPA) must use the ACH credit
process when making a postage payment to their PostalOne!^®^/CAPS
account, or to a postage meter provider. If the postal location is a
non-PostalOne!^®^ site, the FPA must pay by cash, check, money order, or
a Personal Identification Number (PIN) based debit card.

The FPA can use cash, checks, debit cards, money orders and credit cards
for all retail transactions.

**2. Q. What is EFT?**

**2. A.** EFT refers to Electronic Funds Transfer (EFT) and provides for
electronic payments and collections. It is a process by which funds are
electronically transferred from one party to another through a financial
institution. It specifically refers to ACH credit, ACH debit and
Fedwire.

**3. Q. Why should an FPA use EFT mechanisms to make postage payments to
USPS?**

**3. A.** The Department of the Treasury, Financial Management Service
(FMS) has established electronic payment mechanisms to eliminate the use
of Treasury checks and to maximize funds held in Treasury's account.

**4. Q. What is the United States Postal Service (USPS) PostalOne!^®^?**

**4. A.** PostalOne!^®^ is a suite of on-line services that allows the
USPS to electronically collaborate with its business mail customers.

**5. Q. What is the primary purpose of USPS PostalOne!^®^?**

**5. A.** USPS PostalOne!^®^ 1) streamlines the mail acceptance and
postage payment process, 2) provides consistent verification, 3)
improves tracking, mailing jobs and access to information, and 4) is
designed to eliminate the hardcopy paperwork.

**6. Q. What is the Centralized Account Processing System (CAPS)?**

**6. A.** The Centralized Account Processing System (CAPS) allows
commercial customers that have multiple mailing locations to pay for
postage by Electronic Funds Transfers (i.e. ACH Credit, ACH Debit and
Fed wire).

**7. Q. How do I get a CAPS account?**

**7. A. The following steps are necessary to obtain a CAPS account:**

> 1\. Decide the locations where you want to mail from.
>
> 2\. Open local accounts (i.e. permit imprint, business reply, postage
> due) at your mailing sites.
>
> 3\. Go to [http://caps.usps.gov/capshome.asp]{.underline}
>
> \*Go to Forms
>
> \*Print, Complete and Sign Form PS 6001 and PS Form 6002
>
> 4\. Send Forms to the CAPS -San Mateo Service Center.
>
> **NOTE**: Only PostalOne!^®^ sites can be connected to a CAPS account.
> In the specific case of Business Reply Mail the PostalOne!^®^ site
> must also be using the Business Reply Module in order to
> electronically send funds via ACH Credit and pay for the postage.

**8. Q. How should an FPA make postage payments?**

**8. A.** Under GSA's Federal Mail Regulation (41 Code of Federal
Regulations (CFR) Part 102-192), FPAs are encouraged to move away from
the Official Mail Accounting System and move toward USPS PostalOne!^®^ a
more efficient and accountable commercial payment process for postage.
Agencies using USPS PostalOne!^®^/CAPS will use EFT (ACH credit
transactions) to make postage payments.

**9. Q. How should an FPA make postage payments when using the USPS
PostalOne!^®^ and postage meter services?**

**9. A.** FPAs will use ACH credit for postage payments.

**10. Q. What is an ACH credit transaction?**

**10. A.** An ACH credit transaction is an electronic payment
alternative to checks and cash. ACH credit gives the FPA the control to
determine the amount to send and when.

**11. Q. Can credit cards be used to pay for USPS services?**

**11. A.** All USPS sites can accept and process credit card
transactions. Credit cards can be used to pay for products and/or
services such as permit fees, mailbox rentals and postage stamps.
However, credit cards can not be used to make deposits to the FPA's
PostalOne!^®^/CAPS account (i.e., postage due, business reply mail,
periodicals, or any trust account).

**12. Q. At our FPA, the postage payment transactions are not very
large. What EFT mechanism(s) should be used?**

**12. A.** FPAs with small postage payment transactions should use ACH
credits if the mailing location is a PostalOne!^®^ site. All
PostalOne!^®^ sites can be connected to a PostalOne!^®^/CAPS account.
However, agencies that purchase retail postage from local post offices
which are not connected to the USPS's PostalOne!^®^ system may use
credit or debit cards.

**13. Q. What is the commercial payment process?**

**13. A.** The commercial payment process is a new mail management
policy for FPAs to pay for postage. Postage costs are accounted for
through an FPA's standard accounting and budget process the same way
that private sector organizations do. This policy will enhance mail
center security requirements and change the way FPAs pay for mail.

**14. Q. What is the benefit of converting to the commercial payment
process?**

**14. A**. Conversion to commercial payment process will improve federal
financial management systems and produce accurate, timely and useful
information about postage expenses. The end result allows the FPA to
actively manage its mailing processes and may reduce current postage
expenses.

**15. Q. Where do FPAs make postal payments?**

**15. A.** FPAs must make postage payments to USPS bank accounts.
Prepayments may not be held outside of Treasury in postal vendor
accounts, unless the agency has statutory authority to do so or it has
received prior written approval from FMS.

**16. Q. Can an FPA prepay postage for a whole year?**

**16. A.** Technically, an FPA can prepay postage for an entire year.
However, Treasury does not consider paying for an entire year's postage
in advance a sound cash management business practice for FPAs.
Consequently, FPAs should budget, account, and pay for postage based on
usage.

**17. Q. When should an FPA schedule testing for payment files?**

**17. A.** All FPAs should schedule testing prior to submitting postage
payment files to their agency's respective processing service center.
The record format is tested by submitting a zero dollar transaction with
the formatted addenda record through their system to verify the
information required by the USPS.

**18. Q. Where should a Treasury-disbursed FPA submit payment files for
postage payments?**

**18. A.** Treasury-disbursed FPAs should submit their payment files for
processing postage payments through its servicing FMS Regional Financial
Center (RFC). Agencies must use the record payment formats required by
FMS. For assistance in completing your records, please contact your
servicing RFC.

**19. Q. Where should a non-Treasury disbursed FPA submit payment files
for postage payments?**

**19. A.** Non-Treasury disbursed FPAs will submit their payment files
for processing to their respective payment processing site.

**20. Q. Where can an FPA find payment formats?**

**20. A.** Payment record formats can be found at the following
websites:

> <http://fms.treas.gov/bulktransfers/index.html>
>
> <http://fms.treas.gov/eft/regulations/achpostagepayments.html>
>
> http://fms.treas.gov/CTX/format_vendorexample.html

**21. Q. How does an FPA obtain the USPS bank routing & transit
information for ACH credit payments?**

**21. A.** The USPS, San Mateo Service Center will provide FPAs with the
appropriate ACH credit format for PostalOne!^®^. The postage meter
vendors will provide the appropriate ACH credit format for the
Computerized Meter Resetting System (CMRS).

**22. Q. Where can an FPA find the procedures for reporting to Treasury
for IPAC and ACH payment transactions?**

**22. A**. For IPAC transactions, agencies will follow the procedures
outlined in Volume I TFM 6-4000 for billing/collection and payment of
intra-governmental transactions. Treasury-disbursed and non-Treasury
disbursed agencies will follow the procedures outlined in Volume I TFM
4-1000 and 4-2000 for initiating ACH credit payments.

**23. Q. How does an FPA obtain information about postage meter
companies?**

**23. A**. Postage meter information can be found at the following
websites:

[www.usps.com](http://www.usps.com/) and
[www.postagenow.com](http://www.postagenow.com/).

FPAs can also contact their postal meter company.

**24. Q. Where can an FPA obtain additional information on making
postage payments to the U.S. Postal Service?**

**24. A**. Additional information on making postage payments can be
found in the *Treasury Financial Manual (TFM), Volume 1, Bulletin No.
2006-07* located at the following website:
http://fms.treas.gov/tfm/vol1/04-02.html.

**25. Q**. **Who can an FPA contact regarding IPAC and TFM guidance?**

**25. A.** Direct all inquiries regarding IPAC guidance to a
representative listed at http://fms.treas.gov/goals/ipac/contacts.html.
For TFM guidance, visit http://fms.treas.gov/tfm/vol/04-02.html.

**26. Q**. **Where can FPAs obtain the General Services Administration
and United States Postal Services guidance on postage policy and
procedures?**

**26. A.** Direct all inquires to http://www.gsa.gov/mailpolicy.