Change in Post Office Mailing Standard Seen as Positive for ARM Industry

A new standard for letter coding at the United States Postal Service (USPS) could have a sweeping positive impact on the accounts receivable management industry as collection organizations will be able to more effectively track letters and save on bulk mailing costs.

Scheduled for implementation in May 2009, USPS’ Intelligent Mail Barcode (IMB) combines POSTNET and PLANET Code barcodes along with other data into one 65-bar code.

The new standard barcode not only gives letters a cleaner look, but it also confirms the status of each mailing from the time it is mailed to when it is received. The new barcode also offers free Address Change Service (ACS) benefits.

IMB has great potential for the accounts receivable management industry, according to a letter-sending vendor that serves collection agencies. “IMB gives customers huge advantages and intelligence that they never had before,” said Ed Horworitz, Chief Operating Officer at PSC Info Group.

The new barcode will allow collection agencies to track letters and remittances, which will enable them to more effectively predict cash flows and facilitate more accurate calling strategies.

Through the confirmation mechanism built in to IMB, call centers will now know when a customer receives a dunning letter, and follow up at the appropriate time, according to Mike Pompa, managing director at Pitney Bowes Group 1 Software, a mailing systems hardware and software provider.  “It will be incredibly powerful for the collection industry,” Pompa noted.

Pompa, said that the barcode is supposed to make postage cheaper, although a definite pricing scale has not been published released. The prices are expected to be published in late February.