Postage Escrow Guide
Welcome to the DFS Postage Escrow Guide! This guide is designed to help you understand and maintain your Postage Escrow account.
What is Postage Escrow?
Upon signed contract or agreement, DFS will request an initial postage deposit. This deposit is a minimum escrow balance that will be applied to your account for upcoming postage related jobs. This escrow reserve minimum is based on volume.
Who is This Guide For?
This guide is for any individual looking to:
- Fund or replenish their Postage Escrow
- Understand the Postage Escrow process
How to Use This Guide?
Whether you are a new or current customer, this guide will walk you through:
- Determining an appropriate postage escrow balance
- Monitoring your postage escrow account
- Funding your postage escrow account should you run negative
How It Works
Permit Indicia Process
DFS utilizes a permit indicia process for mailing through the USPS. This means we can deliver your mail to the USPS faster and more efficiently, as the indicia is applied directly to envelopes during manufacturing, eliminating the need for metering and stamps.
Postage Deposit Account Setup
DFS requires a minimum 2-month postage deposit account to be set up prior to your first mailing. This is to ensure your account at DFS always maintains a positive balance for continued mailing.
Billing Cycle
DFS bills customers 30-days in arrears for actual postage used the prior month. With standard contract terms of 30 days, that puts payment in a 60-day cycle. By paying your monthly invoices, you will be replenishing your postage account to ensure mailings continue uninterrupted.
Payment Options
DFS submits monthly invoices via email and can accept payment via Check, ACH with no additional fees, or by credit card with a standard 3.25% transaction fee.
Monitoring Your Account
DFS has a few ways for you to monitor your Postage Escrow Account:
- Our secure online Portal gives you full access to your postage ledger, showing your initial deposit amount, deductions by work order, deposits/payments made to replenish your account, as well as your Current Balance.
- With each invoice from DFS, you will receive a postage report showing your beginning and ending balance, any deposits made, and all work order deductions for the period.
- In addition to the exportable postage ledger, DFS offers a postage Usage Report that can be ran at any time on Portal. The reporting includes -by job- the type, weight, pieces mailed, and postage amount used. You'll also receive a summary of your account to assist with balancing.
Postage Reconciliation & Deposit Refund Process
Your postage account is reconciled at the end of each month. Then, at the end of the contract or relationship, your account will go through a final reconciliation to settle your account.
If all invoices are paid, you can expect a full refund for your deposit amount. If there are open invoices on your account, you would instead expect a refund of your deposit amount less any open invoices.
EXAMPLE 1: | EXAMPLE 2: | EXAMPLE 3: |
|---|---|---|
Initial Deposit Amount: $50,000 Postage Used During Contract: $1,500,000 Payments Applied: $1,500,000 Open Invoices: $0 Refund Amount: $50,000 | Initial Deposit Amount: $50,000 Postage Used During Contract: $1,500,000 Payments Applied: $1,500,000 Open Invoices: $40,000 Refund Amount: $10,000 | Initial Deposit Amount: $50,000 Postage Used During Contract: $1,500,000 Payments Applied: $1,550,000 Open Invoices: $0 Refund Amount: $55,000 |
