1. Mail Entry and Payment Technology MTAC Pritha Mehra VP Mail Entry & Payment Technology February 17, 2011

2. Agenda  Overview of Strategic Vision  Challenges - Mail Entry and Payment  Streamline Acceptance and Payment Agenda 2

3. Mail Entry & Payment Technology Leverage Technology to improve customer experience through innovative and seamless mail entry and payment solutions  Simplify and automate the mail acceptance process  Expand Mail Entry Access  Convenient and Flexible Payment Solutions  Integrated customer support and feedback  Increase Value Proposition from Intelligent Mail 3

4.  Onerous on-boarding process  Manual, time-consuming Acceptance  Inconsistent Experience  Acceptance/Verification delays mail induction  Disparate customer support  SOX Challenges Entry Challenges Too Complex and Costly Large Mailer Mid Maile r Small Mailer Travel Time Costs Procedural Single Entry Channel for all Mailers Frustrated Customer Manual & Hardcopy- based Processes Lacking Use of Technologies 4

5. Payment Challenges Product Payment Channel Payment Method Address Correction Corporate Express Mail Business Mail CAPS Service Center PO Box Retail Unit Invoice  Limited Access  Multiple Touch-points  Multiple Accounts  Multiple Payment Records  Permit in Every Location 5

6. Entry & Payment Challenges  Another form – another account; –If I want another postage method (Meter/PC) –If I want to use another office  Costly/complex –Must apply in person –Separate fees –Multiple account numbers to track Post Office P# 100 Wash DC P# 7235 Balt MD P# 2498 Fairfax VA 6

7.  Easy Payment  Online Tools & Self-Service Kiosks  Automate Acceptance & Verification  Enhanced Intelligence & Feedback  Centralized Automated Support  Optimize Network Streamline Entry & Payment 7

8. Easy Payment  Universal Payment Account  Eliminate the need for a separate account in every origin mailing location or for every product and service  Pay for multiple USPS products and services via Universal account  Low Cost and Flexible Funding & Payment Options  Flexible payment delivery – online or across the counter 8 Meter Account PO Box Account Business Mail Account (Permit) CONFIRM Subscription Express Mail Click N Ship Centralized Account / Payment Account ID (PAID) Payment Options: ACH Debit, Trust, Credit Card, PayPal, Bill MeLater Meter Account PO Box Account Business Mail Account (Permit) CONFIRM Subscription Express Mail Click N Ship Centralized Account / Payment Account ID (PAID) Payment Options: ACH Debit, Trust, Credit Card, PayPal, and Invoicing

9. Easy Payment  Mailer creates customer profile (CRID)  Mailer creates payment profile (PAID)  Mailer selects Postage Methods  Mailer selects Funding Methods  Mailer accesses products/service Post Office 12345 Wash DC 12345 Balt MD 12345 Fairfax VA 9

10.  Validate Migration Approach  Migration Strategy to PAID account  Mailers will no longer need local Accounts – Permit, PC/MT – Ghost – ADDPOS – Postage Due Easy Payment 10

11. Easy Payment  MTAC Workgroup 140  Focus Groups  Provide Feedback on Payment Features & Options  Review Requirements  Validate Migration Approach  Develop Communications & Training 11

12. Easy Payment Benefits  Faster “time-to-market” programs – Invoicing, Deferred Billing, and Loyalty Program  Reduce Costs around Account and Payment Management  Visibility across postage spend 12

13.  Mailer Uses Online Features to Prepare Pieces  Kiosk Guides Mailer through Final Preparation & Payment  Captures mailing specifics  Validate Weights and Piece Counts  Generates simplified Manifest  Invoicing  Drop-Off 13 Automate Acceptance & Verification

14.  Full Service Mailings: IMb barcodes, Electronic Manifest  eVS: IMpb barcodes, Electronic Manifest  Containers Scanned Upon Entry  Mailpiece scans count, verify addresses and delivery point Automated Reconciliation Processing Scans Induction Scans 14 Automate Acceptance & Verification

15.  MTAC 138: eInduction  IMbc on all containers  Electronic Container Information Linked to Payment  Multiple Options:  eDOC  Full Service  Wizard  Consolidator Automate Acceptance & Verification 15

16. MAIL WITH UNIQUE BARCODES CENTRALIZED ELECTRONIC PAYMENT & ELECTRONIC RECONCILIATION Scan and Count r r F Y a d M a g e m e n t e  Reply Mail with IMb  Automate accounting & payment 16 Scan Based Invoicing Automate Acceptance & Verification

17. Enhanced Intelligence & Feedback  Integrated Reports via Business Portal  View all transactions across Postal Service  From Inception to Delivery  Online and Push 17 Mail Prep. Information Induction Information In Process Information Mail Quality Information Financial Information Delivery Prediction

18. Centralized Automated Support  Customer support services that meet a dynamic mail supply chain  Centralized support services that are relevant to specific business needs  Timely, accurate, and relevant flow of information that enable appropriate supply chain decisions  Online mailing support tools  Online education and information  24x7 Access to help – general information to mailing specifics 18

19. Optimize Channel  Automate Processes  Expand access via automation, Kiosk, Post Office  Optimize facilities/resources at BMEUs/DMUs  Centralize support 19

20. Benefits  24X7 Account Management & Information Access  Flexible, Convenient Payment Options  Expanded Access  Standardized acceptance and verification processes  Lengthened Mail Production Cycles  Timely, accurate and consistent information regarding mail design, preparation rules, processes, and decisions  Timely decision support information for mailing quality performance 20

21. Appendix 21

22.  Look for your support in: -Agreements are Current -Access to Mail for Verification -Complete and accurate verification documents and Postage Statements, 8125s, 8017s Your Support 22

23. Escalation Process  Escalation Process for General BMA –Local Post Office or Business Mail Entry Unit –District Business Mail Entry Manager –District Marketing manager –Area Marketing Manager  Mailers with Special Postage Payment Systems –Local Post Office or Business Mail Entry Unit –District Business Mail Entry Manager –District Marketing Manager –Business Mailer Support Analyst  Send the email to MailerSOXConcerns@usps.gov to have your issue addressed at the Headquarters levelMailerSOXConcerns@usps.gov  FAST Help Desk: fast@usps.com1-877-569-6614.fast@usps.com 23