The costs incurred by Royal Mail in handling each individual order mean that commercially we need to have a minimum order value - as many businesses do. Introducing this measure will help balance the high cost of processing small and manual paper-based orders. This is particularly important now that Royal Mail is operating in a fully competitive postal market.

Customers will still continue to enjoy other benefits including low prices and extended credit terms when ordering postal services on their account.

From 1st September 2007, we will be introducing a minimum order value of £5 on all orders we receive. This means that from this date, if customers send us an order at a value of say £4.10, it will be automatically topped-up to £5.

From early 2008 (date to be confirmed), we will be increasing the minimum order value on paper posting cheques to £20. At the same time we will also be introducing a £1 handling fee for every paper posting cheque, regardless of value. The £20 minimum order value and £1 handling fee will not apply to any orders our customers place electronically.

We will be writing to our customers later in 2007 to confirm the date this will go live