Purchase Power Overage Fee Calculation Changes

Purchase Power is a Line of Credit offered by Pitney Bowes Bank. Just like all other banking and financial credit products, customers use our Line of Credit to preserve cash flow and extend payment and DPO cycles by providing one, consolidated, flexible, pay-later resources for all their postage, mailing, and shipping expenses. Learn more about our Line of Credit (Purchase Power).

A monthly postage usage threshold is built into your Purchase Power Terms & Conditions. When your postage purchases exceed that threshold, a 1% Overage Fee is assessed on any amount over the threshold during the statement period. The Overage Fee covers the cost of funds borrowed over that threshold. You are billed for that purchase on your monthly Line of Credit (Purchase Power) statement. An Overage Fee is not an Over-Limit Fee. An Over-Limit Fee is incurred when you exceed your total credit limit for your Line of Credit (Purchase Power). Learn more about fees.

The Overage Fee is 1% of the postage purchased that exceeds the threshold, which covers the cost to lend the money for an average of 42 days.

It is in the Overage Fee Section of your Purchase Power Terms & Conditions.

Pitney Bowes has updated the Overage Fee calculation to include postage across all meter and postage accounts. Previously, the calculation only included postage purchased for physical meters. When you exceed the postage threshold across your combined meter and postage accounts, a 1% Overage Fee is assessed on any amount over the threshold during the statement period. The Overage Fee covers the cost of funds borrowed over that threshold.

Pitney Bowes has updated the Overage Fee calculation to include postage across all meter and postage accounts. Previously, the calculation only included postage purchased for physical meters. When you exceed the postage threshold across your combined meter and postage accounts, a 1% Overage Fee is assessed on any amount over the threshold during the statement period. The Overage Fee covers the cost of funds borrowed over that threshold.

1. Line of Credit (Purchase Power) - Send Now, Pay Later 

a. Extend your days to pay for an average of 42 days from your postage purchase date
b. Lengthen your DPO cycle to keep your cash on-hand
c. Similar to a credit card - Pay your monthly bill on time and in-full to avoid late fees and finance charges (interest)
d. Consolidate your postage, mailing, and shipping purchases into a single Line of Credit
e. Learn more about our Line of Credit (Purchase Power) or how to Request a Credit Limit Increase

2. Deposit Account (Reserve Account) – Pay as You Go

a. Deposit funds into an FDIC-insured account to reserve for postage, mailing, and shipping expenses
b. Purchase postage when you need it
c. Learn more about our Deposit Account (Reserve)

3. USPS Trust Account – deposit funds into the USPS Trust Account to purchase postage as you need it. Learn how to pay for postage with your USPS Trust Account 

4. Credit Card – use your preferred credit card to purchase postage as you need it. Learn how to pay for postage with a credit card.

• Ensure your monthly postage purchases remain under the threshold included in your agreement. Find your threshold under the Overage Fee Section of your agreement.
• If you routinely exceed your postage threshold, consider upgrading your meter or PB solution to better meet your mailing and shipping needs.

Pitney Bowes will evaluate the postage thresholds in 2024.