Mailing has been a traditional method of communication for ages. It guarantees consistency and trustworthiness when conveying delicate information or delivering bulk packages from one venue to another. It is a fundamental part of our social fabric today. Therefore, it is incomprehensible to imagine a hypothetical scenario where there’s no mailing available for communication.
Furthermore, irrespective of what you hear about the digital revolution taking over, let us tell you that physical mailing will be retiring soon. However, some changes may have to be introduced to keep up with the changing times. The conclusion of 2024 will see the effective sidelining of postage machines.
The United States Postal Service, or the USPS®, is upgrading from the older system, Information Based Indicia (IBI), which has served them for more than twenty years. They are looking to improve all their postage meters to implement a new system—Intelligent Mail Indicia (IMI). IMI is a modern technology that has been gradually introduced for public use over the last decade.
The USPS® will decertify any postage meter still using IBIP post-June 30th this year. However, they have set a USPS IMI Compliance Deadline until December 31, 2024, after which they will stop accepting postage from decertified meters. Your postage meter will necessitate IMI technology to remain functional once the New Year arrives.
There’s no denying that understanding the fundamentals of USPS® decertification will assist you in getting the hang of this crucial moment in U.S. postal services. Moreover, decoding USPS IMI Compliance will help you predict the implications for businesses and everyday users. In this blog, we will walk you through the depths of this very subject.
Why is there a Decertification?
Postage meters in the United States use either Information-Based Indicia (IBI) or Intelligent Mail Indicia (IMI) technology to show payment. The IBI postage meters have gone out of practice since June 30 this year. They will need replacing from the field by December 31 this year.
In December 2020, the USPS® authorities announced that they would decertify all non-IMI postage meters and that postage purchased from non-IMI postage meters would become obsolete after June 2025.
What does IMI Mean?
Indicia, or Permit Imprint Indicia, is a printed postage type that is a solid alternative to a traditional stamp or postage meter marking. Much like IMI, IBI is a printed postage form. The original purpose behind IMI was to provide the USPS® with more compact data and intensified security.
The USPS® has been integrating IMI since the last decade after more than twenty years of service from IBI. Although IMI is primarily based on IBI, it is also a better technology. The responsible authorities are now poised to impose the adoption of IMI for all postage meters to align with their ten-year initiative.
What does IBIP Mean?
An insurance-based investment product, or IBIP, is a distinctive financial product that promises insurance and an investment component. Simply put, you actively invest in the financial markets by paying for a life cover.
You must develop a detailed understanding of potential risks since IBIP performance is directly related to market conditions and fluctuations. Everyone is on the hunt for high returns against low investments. However, the risk and promised return are on similar levels in most cases, and IBIPs are no exception.
What Is USPS IMI Compliance?
Intelligent Mail Indicia (IMI) is a new-age postage evidencing system, a digitally-based IBI alternative for the USPS. Although both systems are currently in practice, IMI brings technological development to improve automation, security, and transaction data.
The Intelligent Mail Indicia (IMI) technology became available in 2013 and has continually improved upon IBI. However, the sluggish transition behavior from the mailers compelled the USPS® to announce plans to phase out IBI on a set of deadlines:
- They have been decertifying all IBI meters since June 30, 2024.
- They will treat any remaining IBI meters as non-compliant by the end of 2024.
- They will not acknowledge any postage paid for using non-IMI meters after June 2025.
So far, we have tackled the question of what USPS IMI Compliance is. Now, the next question is, what does this mean for business or third-party mailing services that are still working with IBI postage meters? There’s no better time to upgrade to the “new” standard than now since the traditional options will soon become obsolete.
As you reach the deadline, backups and bottlenecks will likely form, thereby jeopardizing your plans to work with a new IMI system quickly. Although you could wait until December 31 this year, you will lose its benefits.
We will discuss the benefits in depth later in this blog. First, we must understand the differences between IBUP and IMI meters.
IBIP vs. IMI Meters: What’s the Difference?
The USPS® uses both IBI and IMI as postage evidence standards. The digital-based postage meters show electronic postage payments upon completion. Both options effectively accelerate the mailing process, dial down business expenses, and anticipate returning packages due to improper postage. However, IMI is competent at processing more data, alleviating recurring mailing issues, and improving precision, security, and more.
Now, a question arises: where does the difference lie between the two standards?
IBI is best defined as a two-dimensional data matrix barcode featuring mail class, postage amount, weight, destination, originating zip code, confirmation, tracking information, and a cryptographic signature. It also provides human-readable information to adhere to the USPS® Domestic Mail Manual (DMM) requirements.
With IMI postage meters, you are getting everything promised by IBI. Additionally, it promises the functionality to process more data and maintain synchronization more recurrently with the data system of USPS. It also uses modern latest technology, the latest postal rates, and analytical tracking capabilities.
We’ve highlighted the features that IMI promises for improved mailing.
- Comprehensive transaction data for every mail piece.
- Computerized exchange of funds, refunds, and fraud identification.
- Regulated keyed-in postage
- Provision for the Federal Government to gain data on end mailers
- Tracking and management of reprinted Indicia
- Reprinted Indicia management and tracing
- Improved readability
- Precise calculation of paid and overpaid postage
- Enhanced data transfer, rate tabs, and log files
Why does the USPS Require IMI to Replace IBIP?
IBI technology uses 2D barcodes to encrypt diverse and unique information. Possible examples include mail details, postage, zip codes, weight, tracking numbers, and a signature. It necessitates timely connection to servers via landlines to refresh its data every three months.
Despite its extensive service run and industry-tested capabilities, IBI is subject to potential issues, namely wrong postage rates and mail classes. Moreover, its security standards don’t adhere to the current benchmarks, requiring upgrades to tackle modern security challenges.
As mentioned already, IMI incorporates every bit of information from IBI. Furthermore, it also features more data to enhance USPS’s mail management. It has also gained notoriety as it improves security, computerizes processes, and cuts down costs. You get a more rapid connection, refreshing every 72 hours via an exclusive LAN System, ensuring real-time accuracy.
IMI promises excellent security against potential threats with the FIPS 140-2 standard. Additionally, the advanced tracking system in IMI introduces a more widespread and simplified mail monitoring method. A manual postage entry option is available here, which is responsible for updating the postal rates with automatic downloads.
Benefits of Adopting USPS IMI Technology
Although this change is necessary, the USPS IMI Compliance will also benefit the mailers by supplying more value to businesses. We have discussed six common benefits here to improve your understanding.
Avoids Overspending
To be certain, did you ever add extra postage to a package? It’s a common phenomenon that looks like a waste on your bottom line. IMI removes the need for guesswork and overspending since the USPS® has banned the ability to key in postage. Instead, you now have the option to choose the desired service class, with the meter computing the correct postage for you.
Smoothens Your Cash Flow
It’s simple to claim return authorizations and get your money back since IMI processes detailed transaction records. If the content arrives in underwhelming conditions, you don’t need to present the insurance receipt at the post office. It is easy now for the USPS® to review the data to verify the insurance compensation payment and handle the claim spontaneously.
Keeps You Up To Date
Your postage meter uses a dedicated network connection with IMI to contact the provider more frequently. You can rest assured that the altered postage rates and specifications download directly to your meter. IMI will assist you in working with the latest information.
Improves Mail Delivery Services
The rapid transaction data with IMI promises revenue due to paying appropriate postage for the class and services. Therefore, USPS® now has the chance to run mail delivery services more smoothly.
Assists in Reducing Mailing Costs
In simple terms, the cost of mailing services determines postage rates. IMI can assist the USPS® in dialing down this cost by computing a whole bunch of labor-intensive manual and back-office tasks. For instance, modern technology simplifies sampling and verification by computing all transaction data instead of counting mail by hand.
Strengthens Data Security
Cybercriminals constantly search for vulnerable points in data security. IMI provides strong security that encodes intimate data to aid fraud detection. Additionally, the improved data security allows secure data transfer both to and from the meter.
USPS IMI Compliance Deadline & Important Dates
Here’s a detailed list of important dates regarding USPS IMI Compliance.
- June 30, 2024: All non-IMI postage meters will officially get decertified by the USPS.
- December 31, 2024: All non-IMI postage meters will still function. Beyond this date, all non-IMI-compliant postage meters will become “inactive.”
- June 30, 2025: Any indicia produced with decertified systems will not be deemed as valid postage beyond this date.
- June 30, 2026: The USPS® has outlined this date as an extension for some mailers who qualify for explicit criteria.
Preparing for the IMI Transition
There’s no denying that transitioning from the traditional method to a modern alternative can be challenging across all spheres of life. We have developed a comprehensive list of some tips that will assist you in making the change regarding the USPS® Decertification. It will aid your switch from the IBI to the IMI system:
Stay Up-to-date
Awareness is the first step to a seamless transition. Hence, we recommend you constantly check USPS® announcements to find out about new progress on decertification. The best place to start is the USPS® website. Additionally, relevant news sites and social media outlets are credible sources for such updates.
Appraise Your Current System
If you have an IBI postage meter, start exploring appropriate replacement options now. Don’t wait until the last minute to avoid potential issues.
Seek Trusted Suppliers
You must only pick established and trusted companies to avail postage meter IMI compliance. Moreover, ensure your machine is in suitable condition and fits the USPS® IMI Compliance requirements.
Pursue Training
Lastly, acclimatize your team with the modern technology. We recommend you attend workshops or attend online training sessions to develop your skills.
Partner Up With Network Digital to Stay Ahead Of Postal Regulations and Technological Advancements
There’s no denying that physical mail continues to be the immediate postal choice for many despite the rapid succession of digitization. Postal service-certified meters under IMI compliance will revolutionize the process by dialing down manual processing and optimizing operational costs.
The USPS IMI Compliance journey has already commenced for Network Digital customers. We house an extensive range of office equipment that can aid you in ushering in a promising future. Network Digital is the right partner to make all your mailing and shipping tasks more secure and efficient.
We are working round the clock to aid a smooth switch from analog to digital. With our excellent office equipment solutions, you will have an efficient and uninterrupted mailroom workflow. We are your go-to service provider if you want to rent a USPS® IMI Compliant Postage Meter or a complete transition to an IMI system.
There’s no need to leave the house to visit the post office. With Network Digital, you can begin your IMI journey right away.
Some of the IBI Models Being Decertified
The USPS® has announced its intention to decertify all postage meters that don’t support IMI standards. The thought behind this switch is to upgrade the existing technology and improve speed and security.
Subsequently, you must alter your non-IMI postage meters to the latest IMI technology. We’ve compiled a list of some of the IBI models that are being decertified at present:
Pitney Bowes Models:
DM100®i, DM125®, DM200L®, DM225®
DM300c™, DM400c™, DM450c™, DM475c™
SendPro® P-Series (P1000, P1500, P2000)
Quadient (Formerly Neopost) Models:
IS-280, IS-350, IS-420, IS-440
IN-360, IN-600, IN-700, IN-750
Francotyp-Postalia (FP) Models:
PostBase 20, PostBase 30, PostBase 45
PostBase Vision, CentorMail
Data-Pac Models:
All IBI-compliant models
