July 14, 2024—On July 14, 2024, the U.S. Postal Service implemented its new mailing and shipping service rates. This price adjustment reflects the agency’s continued efforts to combat rising operating expenses and market conditions, and is a part of a 10-year restructuring plan announced by the agency in 2021 for achieving long-term financial sustainability. The price of a first-class mail stamp will increase by more than 7%, from 68 cents to 73 cents. According to a recent article in Reuters, “the plan will raise overall mailing services product priced by 7.8%. USPS has said it expects its ‘new pricing policy to generate $44 billion in additional revenue’ by 2031.”
These increases are expected to impact businesses and high-volume mailers. Financial institutions looking to combat these rising postage costs, if they have not yet done so, may themselves consider moving to electronic rather than paper statements. Financial institutions may see significantly reduced production and supply costs. And, as the USPS is also suffering from frequent mail delays, as noted by the Wall Street Journal in June, consumers will benefit by receiving their statements and notices in a more timely and secure manner.
Some financial institutions may default to electronic statements, and others, if permitted in their state, may charge for paper delivery. But these decisions must depend not only on costs, but also on the needs of the consumers and businesses you serve. National surveys regularly show that consumers value choice. Electronic statements can cause friction for those without stable broadband internet access, and many find it easier to reconcile account activity with a paper statement, are wary of losing their notices in crowded inboxes, or simply do not review digital statements as closely as paper. Financial institutions must follow regulations and be aware of guidance from consumer advocacy agencies.