Background
The Postal Service offers outbound international money transfer services through both international paper money orders and Sure Money, an electronic money transfer service. International paper money orders are sold at all post offices and cashed in participating countries, while Sure Money transfers funds from certain post offices to 10 Latin American countries. These two services form the International Money Transfer Service (IMTS)–Outbound product. IMTS–Outbound is a competitive product, and the Postal Accountability and Enhancement Act of 2006 (PAEA) requires that revenue from each competitive product cover its attributable costs. The Postal Service started the Sure Money Service in 1996 in alliancewith a private banking institution. It allows customers to transfer up to $1,500 per day from the United States to 10 Latin American countries, with Mexico being the most frequently used destination. The service is available at 2,800 post office locations.
What We Did
Our objective was to assess select processes and review financial performance of the Sure Money service. We visited seven post offices to assess their compliance with Sure Money policies and field procedures, Bank Secrecy Act requirements, and mandatory training requirements. In addition, we reviewed Sure Money financial information and assessed its performance.
What We Found
We found that post office personnel followed procedures for processing Sure Money transactions. Additionally, they complied with Bank Secrecy Act requirements and completed required training. We also found that revenue from Sure Money covered its attributable costs in six of the last eight years.
The Postal Service increased the price for the IMTS–Outbound product, including Sure Money, by 305 percent in July 2022. The increase was in response to a fiscal year (FY) 2021 Postal Regulatory Commission directive intended to improve cost coverage.
Recommendation
We recommended management reassess the pricing strategy for
the Sure Money service.