WASHINGTON–The U.S. Postal Service (USPS) said it will continue its pilot of financial services through post offices even as response has been underwhelming at best and its or regulatory commission continues to question its legality.
In response to a compliance report issued by the Postal Regulatory Commission, the USPS said, “No final determinations have been reached with regard to ending the pilot, or with regard to any other potential steps that might be taken to modify the pilot.”
As CUToday.info reported here, in September 2021 the USPS began its pilot of financial services in which it allowed customers at four locations to use “business checks”—that is, checks with a business’ name printed on the check and made out to the individual—to pay for Visa gift cards of up to $500. When it offered an update in January, exactly four customers had used the service to date.
The offering of financial service has come over the strong objections of credit unions and many members of Congress.
Pressing Forward
But the USPS says it plans to continue press forward even as the Postal Regulatory Commission said that it and not the Postal Service makes the ultimate decision on what products may be offered through the nation’s post offices.
“Any market test for an experimental product, including services ancillary to only competitive products, must be first reviewed and approved by the commission at least 30 days before initiating such tests,” according to the report. The PRC said it is also requiring the Postal Service to file regular reports and that it plans to review the pilot if it lasts beyond the end of March.
‘Appropriate & Limited’
According to the USPS, it continues to believe the pilot program is an “appropriate and limited test of an alternative payment method for the established gift card product, which does not implicate the current Mail Classification Schedule, and that no further regulatory action is warranted at this time.”
The USPS test is currently running in single branches located in Washington, Falls Church, Va., Baltimore, and the Bronx.