Metering

1. Metering Business Letter Services

2. Introduction Postage metering enables customers to purchase and print postage at any time without leaving the office.  Postage can be downloaded via a modem whenever it is needed. Australia Post provides a 2.5% rebate each time a customer purchases additional credit postage when using a postage meter. In this module This module introduces metering; explains the difference between postage meters and franking machines, and provides an overview of Australia Post’s requirements for metering. Learning outcomes By completing this module, you will be able to: • identify the difference between postage meters and franking machines • list the benefits of using postage meters • understand Australia Post’s requirements for using a postage meter

3. Postage meters at a glance • What is metering? • Metering is a payment method that can be used for a number of Australia Post services. • Metering enables customers to print the postage price on their mail article instead of using stamps. The meter holds the monetary value for an amount of postage. Each time the postage meter is used, the amount of postage stored within it reduces. • Metering is an easy, flexible way to pay for postage on business letter services, as and when it is needed, giving customers the freedom to manage business mail more efficiently. It is recommended that before investing in a postage meter, customers refer to the Conditions of Use for Postage Meters and Franking Machines booklet, or visit the Australia Post website (auspost.com./metering).

4. Postage meters at a glance • What is the difference between Franking Machines and Postage Meters? • Franking Machines are: • old technology, which is being phased out • mechanical or electro-mechanical pieces of equipment • cartridge reset either at a post office, or via the phone • equipped with impact printing technology only • not equipped to produce a data matrix symbol • not available to be used to pay for Business Letter Services Where an engraved stamp physically places an impression on the mail article

5. Postage meters at a glance • What is the difference between Franking Machines and Postage Meters? • Postage Metersare: • the modern equivalent ofFranking Machines • equipped with sophisticated features and capabilities • reset by modem (electronically driven) • equipped with either impact printing, or digital printing technology • embedded with a data matrix symbol • available to be used to pay for Business Letter Services • Australia Post, in conjunction with meter suppliers, has developed a minimum standard for all Postage Meters licensed on or after 1 January 2002. • Only meters which comply with the requirements of the Postage Meter Standard will be eligible for licensing by Australia Post. Includes thermal, inkjet and laser printing techniques. Type 1 Impression (Impact print meter) Type 2 Impression (Digital print meter)

6. Postage meters at a glance • Business Letter service usage • The following table shows which Business Letter Services can be metered: • Business Services Postage Meter Franking Machine • Acquisition Mail  • PreSort Letters  • Print Post  • Clean Mail  • Charity Mail  • Impact Mail  • Unaddressed Mail  • Registered Post*  • *(can also be used with metered mail) • Metered mail lodged for carriage under the PreSort Letters, Print Post, Clean Mail, Charity Mail and Impact Mail services must be prepared in accordance with the relevant conditions of service.

7. Postage metersat a glance • More information • More detailed information is available in the Metering Fact Sheet and Conditions of Use for Postage Meters and Franking Machines booklet. This guide is available at any Australia Post outlet. • Customers can also contact their local Postal Manager, the Postage Meter section in their State or, where appropriate, a Postage Meter supplier. Details of Postage Meter suppliers are provided on the following pages. • Alternatively, customers can visit the Australia Post website (auspost.com.au/metering)

8. Advanced: Metering • Postage meter requirements • Overview • Metered mail lodged for carriage under the PreSort Letters, Print Post, Clean Mail, Charity Mail and Impact Mail services must be prepared in accordance with the relevant conditions of service. Information regarding these conditions of service can be located in the relevant training modules or service guide for each service. • To use a postage meter, customers need to meet the following requirements: • obtain an approved postage meter (via the list of suppliers) • apply for a licence (Application for a Licence to use a postage meter Section 15 of Conditions of Use) • reset with funds • print the postage meter impression • lodge metered articles • Each of thesepoints are covered in detail on the following pages.

9. Advanced: Metering • Postage Meter requirements • Obtain a Postage Meter • When selecting a Postage Meter, customers need to consider: • Printing speed - average daily mail volumes and mailing patterns to determine the printing speed required. Suppliers generally take this into consideration when assisting in selection. • Costs - price depends on the printing speed and whether the machine is equipped with extra features (eg weighing scales or envelope feeding devices). • Maintenance - customers should also consider the ongoing maintenance costs associated with metering (resets, ink, labels and other consumables). • Lease or purchase - basic model postage meters are available for lease from a few dollars a week. Leasing provides the scope to upgrade the postage meter when necessary, and the freedom to take advantage of new technology as it becomes available.

10. Advanced: Metering Inspection and servicing requirements differ for Postage Meters and Franking Machines. Regardless of machine type, customers must immediately report any fault or defect to their supplier or service organisation and to the Licence Controlling Office, and should not allow anyone other than a supplier or Australia Post to inspect, repair or service their machine. Postage Meters need to be inspected at least once every three months. Australia Post recommends that Postage Meter customers have a servicing agreement with a service organisation for the servicing and maintenance of their meter. Australia Post reserves the right to request a physical inspection of a Franking Machine at any time. More detailed information regarding Inspection and servicing requirements can be located in the Conditions of Use for Postage Meters and Franking Machines booklet. • Postage Meter requirements • Obtain a Postage Meter • Postage Meter suppliers and service organisations • A number of suppliers and their agents may supply, service and inspect standard-compliant postage meters. They may also service and inspect approved franking machines. • For the latest supplier information, customers can contact the postage meter section in their State, or visit the Australia Post website (auspost.com.au/metering). • Australia Post staff cannot comment on the relative merits of different brands or models of postage meters. Products that meet the requirements of the postage meter standard are approved. • Australia Post is not responsible for the quality of the products or their fitness for use, and provides no support for such products. Customers should contact their supplier for service queries.

11. Advanced: Metering • Postage Meter requirements • Apply for a licence to use a Postage Meter • Customers need to apply to Australia Post for a licence to use the machine, as follows: • Complete a licence application form: • The application must be accompanied by a zero-value postage impression from the postage meter to be licensed. Suppliers generally assist with this. • Upon signing the application form, the customer is deemed to be the holder of an interim licence and may commence using the postage meter as soon as it is installed at their premises. • Forward the completed licence application form to the postage meter section in their state: • Australia Post processes the application and advises the outcome by mail. • Should an application be refused for any reason, the supplier is required to cancel the lease or purchase agreement without any cost to the customer. A licence application form can be located in the Conditions of Use for Postage Meters and Franking Machines booklet.

12. Advanced: Metering • Postage Meter requirements • Reset with funds • Every time the Postage Meter or Franking Machine is used, the amount of postage stored within it is reduced. The process of replenishing the machine with additional postage in known as resetting. • Postage Meter resets • Postage Meters are reset by modem. The steps involved in modem resets differ from model to model. • Customers using Postage Meters receive a 2.5% rebate on the postage value of every Postage Meter reset. For example, a reset for $1000 worth of postage will entitle the customer to a $25 rebate; so the amount payable to Australia Post is $975. The 2.5% reset rebate is only available for Postage Meter resets. Any fees a supplier may charge for processing the reset will not attract the rebate. The rebate is received at the time of billing for the reset. Many postage meter customers pay their postage meter supplier directly for their resets. Methods of payment vary from supplier to supplier. In most cases, customers are required to pay for the reset up-front. Postage meter suppliers provide specific details.

13. Advanced: Metering • Postage Meter requirements • Reset with funds • Paying for resets by Australia Post business credit account (charge account) • Customers who operate an Australia Post business credit account may have their Postage Meter resets charged to their account. For optimum service and efficiency, a Licence Controlling Office (LCO) should be nominated as the first Preferred Lodgement Centre when completing an application for a business credit account. • If the application for a business credit account is approved, customers are provided with a business credit account number. When in receipt of this number, the customer must: • Advise the Postage Meter supplier in writing of their credit account number along with their Postage Meter licence number. The supplier then amends records to ensure that all future resets are charged to this account. • Send a copy of the correspondence to the Postage Meter Section in their State. The LCO stated in the Postage Meter or Franking Machine licence is usually the Proposed Primary Office of Lodgement of Metered Mail which the customer nominates in the licence application form. In addition to being a lodgement point for metered or franked mail, the LCO is where customers should: • present a manual reset Franking Machine for resetting and inspection • seek refunds for spoils • where appropriate, seek approval for the use of advertising slogans • notify Australia Post of any address changes or if the machine is moved to another location and • notify Australia Post of any intention to dispose of the machine

14. Advanced: Metering • Postage Meter requirements • Print a Postage Meter impression • Determine the correct postage amount for the article • Current prices are available in the • Post Charges Guide (MS11), • Easy Guide to Preparing Metered and Franked Mail and • Australia Post website (auspost.com.au/metering) • If the machine has a pricing scale or an in-built rate calculator, the correct postage is automatically calculated. • In the event of a change in postage prices, the customer must arrange with their supplier to have the pricing scale or rate calculator adjusted appropriately. Sample of a Postage Meter impression

15. Advanced: Metering • Postage Meter requirements • Print a Postage Meter impression • Calculate the correct postage amount on the meter. • Customers should follow the operating instructions provided with the machine. • It is important to enter the correct postage amount into the machine. Deficient postage means that the article is ‘underpaid’ and therefore entitles Australia Post to recover the deficiency (including, if applicable, the debiting of an Australia Post business credit account) and, in certain cases, charge a fee. Articles bearing deficient postage may also experience processing and delivery delays. • Printing the date in the impression is optional for Postage Meter customers. However, if the impression on an item does bear a date, that item may only be lodged on the date that appears in the impression. In accordance with part A, Section 28 of the Australia Post Terms and Conditions.

16. Advanced: Metering • Postage Meter requirements • Print a Postage Meter impression • Imprint the postage impression onto the article • To imprint, letters are fed through the machine. For bulky articles, customers need to imprint onto an adhesive label then affix the label to the article. • Articles bearing impressions which are incorrectly placed, incomplete, faint or printed using poor quality ink may be rejected by our processing equipment, potentially resulting in processing and delivery delays. • To avoid this, customers should remember to: • Print or affix the impression to the top right corner of the address side of the article. The impression should be positioned inside the Postage Zone. • Re-ink regularly and only use Australia Post approved red fluorescent ink. • Ensure all impressions are clear and complete. Customers can request a refund for impressions which are incorrectly positioned or wrongly priced.

17. Advanced: Metering • Postage Meter requirements • Lodge metered mail • Metered articles prepared for carriage by PreSort Letters, Print Post, Clean Mail, Charity Mail, Impact Mail or with Registered Post must always be separated from other mail, and lodged over the counter. • Metered PreSort Letters, Charity Mail and Clean Mail lodgements must be accompanied by a Meter Lodgement Document (8838236). • Metered Impact Mail lodgements must be accompanied by an Impact Mail Lodgement Document (8839151). • Metered Print Post articles must be accompanied by a Print Post Mailing Statement (8835283). • Metered Acquisition Mail lodgements must be accompanied by an Acquisition Mail lodgement document with the appropriate payment channel noted. • All documents are available from the Licence Controlling Office (LCO).

18. Advanced: Metering • Postage Meter requirements • Other considerations • Advertising slogans • Many Postage Meters and Franking Machines allow the printing of an advertising slogan, return address, seasonal greeting or company logo alongside the postage impression. Suppliers can advise on how to do this. • Australia Post reserves the right to cancel a customer’s Postage Meter licence and/or refuse to accept mail bearing a metered message or slogan that may be considered misleading, defamatory, offensive or otherwise objectionable. If in doubt, customers can seek approval for the use of a slogan from their Licence Controlling Office (LCO).

19. Advanced: Metering Conditions of refund for spoils 1. Requests for refund must be made within six months of the impression(s) being made 2. Envelopes and wrappers bearing spoils must be presented intact (although contents may be removed). Refunds will not be made for impressions that have been removed from their original envelopes or wrappers 3. Illegible impressions will be refunded for the lowest value that the machine can print 4. Customers receiving the 2.5% reset rebate will be refunded the net postage value (i.e. the metered postage value less 2.5%) 5. Where a customer has elected to have their resets charged to their Australia Post business credit account; refunds will be deducted from the customer’s next account statement. Australia Post business credit account customers will only be eligible for a refund once Australia Post has received payment for the impressions. • Postage Meter requirements • Other considerations • Refunds for spoils • Australia Post may refund the value of postage impressions which are printed but not lodged for carriage; for example, impressions containing an incorrect postage value. These articles are referred to as spoils and conditions apply. • To qualify for a refund on spoils, customers need to: • Collect all envelopes, wrappers and labels affected, and bundle by value and in date order • Make a written request to Australia Post on company letterhead for the value of the spoils collected, quoting licence number and, if applicable, Australia Post business credit account number • Present the spoils and the written request within six months to the Licence Controlling Office (LCO)

20. Advanced: Metering • Summary • You have now completed this module. The key points covered were: • Metering enables customers to print the postage price on their mail articles instead of using stamps. • Two types of machines print the postage price onto mail - Franking Machines and Postage Meters. • Customers can use Postage Meters, but not Franking Machines as a payment method for Acquisition Mail, PreSort Letters, Charity Mail, Print Post, Clean Mail and Impact Mail. • When selecting a Postage Meter, customers need to consider speed, costs and whether to lease or purchase. • Only meters which comply with the requirements of the Postage Meter Standard will be eligible for licensing by Australia Post. • Customers need to apply to Australia Post for a licence to use a Postage Meter. • Every time the Postage Meter or Franking Machine is used, the amount of postage stored within the meter is reduced. Resetting replenishes the machine with additional postage. Customers may have their resets charged to their Australia Post business credit account. • Australia Post may refund the value of postage impressions which are printed but not used. These articles are referred to as spoils. • Metered articles for carriage by Acquisition Mail, PreSort letters, Charity Mail, Print Post, Clean Mail or Impact Mail must always be separated from other mail and lodged over the counter.

21. Assessment You now need to complete a short assessment to check your understanding of the information covered in this module. This assessment consists of 10 multiple-choice questions and should take you approximately 10 minutes to complete. To pass the assessment, you need to answer at least eight of these questions correctly. Attempt this assessment as many times as you need to. If you do not pass, it is recommended that you review this module again.

22. Assessment 1 What is metering? a. A way of measuring distance • A way of printing postage instead of using stamps Correct answer = B Metering enables customers to print the postage price on their mail articles instead of using stamps, or postage paid / charge account.

23. Assessment 2 True or false? There are two types of machines that customers can use to print postage instead of using stamps: Postage Meters and Franking Machines. a. True b. False Correct answer = A Postage Meters and Franking Machines are the two types of machines that customers can use to print postage instead of using stamps.

24. Assessment 3 Which of the following Business Letter services cannot use metering as a payment method? a. PreSort Letters b. Print Post c. Impact Mail • Unaddressed Mail • Clean Mail • Acquisition Mail Correct answer = D Customers cannot use metering as a payment method for Unaddressed Mail.

25. Assessment 4 Which of the following Business Letter services canuse Franking as a payment method? a. PreSort Letters and Acquisition Mail b. Print Post c. Impact Mail • Clean Mail • None of the above Correct answer = E Customers can only use metering as a payment method for the Business Letter Services. Franking Machines cannot be used.

26. Assessment 5 True or false? Only meters which comply with the requirements of the Postage Meter Standard are eligible for licensing by Australia Post. a. True b. False Correct answer = A Australia Post, in conjunction with meter suppliers, has developed a minimum standard for all Postage Meters licensed on or after 1 January 2002. Only meters which comply with the requirements of the Postage Meter Standard are eligible for licensing by Australia Post.

27. Assessment 6 What do customers requireto use their Postage Meter? a. A contract with a listed supplier • A separate room to keep the machine in • A licence from Australia Post • A regular office where they can lodge their mail Correct answer = C Customers need to apply to Australia Post for a licence to use the machine.

28. Assessment 7 What does Australia Post mean when it refers to ‘resetting’? a. Updating the leased metering machine with a newer model • Altering the programming in the Postage Meter • Replenishing the metering machine with additional funds • Ensuring that the metering machine is placed on a level surface Correct answer = C Every time the Postage Meter or Franking Machine is used, the amount of postage stored within it is reduced. ‘Resetting’ replenishes the machine with additional postage.

29. Assessment 8 Can an Australia Post business credit account be used to pay for Postage Meter resets? a. Yes b. No Correct answer = A Customers who operate an Australia Post business credit account may have their Postage Meter resets charged to their account.

30. Assessment 9 Lodgements of which Business Letter services must be accompanied by a Metered Lodgement Document? • Print Post and Impact Mail • PreSort Letters and Clean Mail • Unaddressed Mail and Reply Paid Correct answer = B Metered PreSort Letters and Clean Mail lodgements must be accompanied by a Meter Lodgement Document (8838236).

31. Assessment 10 What does Australia Post mean when it refers to ‘spoils’? a. Incorrectly addressed envelopes • Mail items which were damaged while processing • Postage impressions that are printed but not lodged • Mail items where the wrong Business Letter service was used Correct answer = C Australia Post may refund the value of postage impressions which are printed but not lodged for carriage (eg. impressions containing an incorrect postage value). These articles are referred to as ‘spoils’.