Through a special USPS program, the United States Post Office, in essence, compensates AAA Mailing Service for presorting mail, barcoding mail, and upgrading addresses on mail prior to its arrival at the post office.

The result of this program is:

1. The post office can bypass many steps in the processing of this mail
2. The customer saves the difference between the full postage amount and the rate which AAA Mailing Service charges them.
3. The piece moves to its destination more quickly, and
4. AAA Mailing is compensated by the post office for its efforts.

Under this program, the customer will affix postage to first class mail at a discount rate and date it for the following day. AAA Mailing Service, Inc. provides daily pickup of the mail.   It is sorted, barcoded, and delivered to the post office.

Flats are pieces larger than 6 1/8 x 11 1/2 inches or thicker than 1/4 inch.

These pieces cannot run through the USPS letter-size automation equipment. The post office gives discounts for presorting flats, but unlike first class letters, it does not have a program to directly reimburse a presort bureau such as AAA Mailing to do this presorting.

For that reason, AAA Mailing Service must directly charge the customer a sorting fee. But because this sorting fee is less than the amount saved by the customer in postage, there is still an opportunity to save substantial amounts when mailing flats.