The U.S. Postal Service has entered into a negotiated service agreement (NSA) with Discover Financial Services Inc.
Under the terms of the NSA, which was approved by the Governors of the Postal Service, Discover will earn lower rates for First-Class Mail volume in excess of 405 million pieces in the first year of the agreement. In exchange, Discover will accept information electronically from the Postal Service about undeliverable-as-addressed First-Class Mail in lieu of receiving the actual mail. This will result in significant cost savings for the Postal Service.
A similar agreement was implemented with Capital One Financial Services last year.
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