CMRA compliance: 4 types of workspace operators risking their brand and revenue

As a flexible office operator who receives mail on behalf of your members, you are considered a Commercial Mail Receiving Agency, and the new CMRA regulation changes happening right now will impact your business.

By January 1, 2025, all CMRAs—yourself included—must be registered in the United States Postal Service’s Business Customer Gateway (BCG). If you fail to do so, your ability to receive mail is at risk—along with your coworking business itself.

Yet, according to our data, nearly half of flexible office operators are still not registered, with only weeks left to go.

Are you unsure how these changes impact you or what you need to do to become compliant?

This article will explain everything you need to know. 

What are the CMRA regulation changes?

The Commercial Mail Receiving Agency (CRMA) was created by the United States Postal Service to govern how non-post office locations receive mail on behalf of other people or businesses.

As a flexible office space operator, you fall into this category of non-post office mail receivers. This applies no matter whether you offer digital mailbox services or simply act as your members’ business address.

Until recently, the USPS used a paper-based system to register CMRAs. This means that you, as the CMRA, would:

• Complete Form 1583A and get it signed by a Postmaster, who would then upload it into the USPS Facilities Database (FDB)

• Get every person or business for whom you will collect mail to complete Form 1583 and keep that form on file, excluding full-time tenant clients or those who use your space at least 16 hours per week.

But here’s where things became complicated: as a paper-based process, it was incredibly challenging to ensure this system was effective.

There was a ton of lost information over time, an increased risk of mail fraud or privacy breaches, and lax compliance.

This is the crux of the new CMRA regulation changes: the USPS is now working to convert this entire paper-based system into a digital process.

Lost revenue, damaged brand Image, and halted mail delivery: the consequences of non-compliance

When it comes to the new CMRA regulation changes, there’s one thing that’s important to understand:

The United States Department of Justice mandated these changes to CMRA regulations to help reduce mail fraud. The DOJ was set to take legal action against the United States Postal Services if these changes were not made.

So, this is not something that can be brushed aside. You cannot ignore this. The USPS will enforce these regulation changes, and they will actively pursue those who are non-compliant, beginning with those who are not properly registered in the BCG

If you are not properly registered in the BCG, here is what you can expect:

• 30-day notice: If you are a CMRA and have been flagged as unverified, you will be given 30 days to comply. This also applies to CMRAs who are verified but have not submitted Form 1583 for each of your customers.

• In-person visit: If you are still non-compliant after the 30 days have expired, you will be paid an in-person visit. 

• Complete mail stoppage: Non-compliance will lead to a complete mail stoppage at your location. This means you would no longer receive mail for your virtual mailbox clients, your members, or even for yourself.

As a flexible office space operator, the impact of a complete mail stoppage could be catastrophic to your business, even if it lasts only for a short time. 

This could include:

• Brand damage: Even short-term disruptions to your core services can have massively negative impacts on your business and brand. You will face frustrated clients who may look elsewhere, and even once your services are restored, your brand may be viewed as unreliable or untrustworthy. 

• Lost revenue: If your location cannot receive mail, you will immediately lose revenue from virtual mailbox services. If your members move their businesses elsewhere, you will experience greater and longer-term losses.

• Irreparable business challenges: You most likely have a lease on your workspace, which won’t disappear just because your customers do. In the worst-case scenario, you may lose your business if your customers go elsewhere and your brand reputation suffers.

While these CMRA regulation changes might seem like a low priority today, they could have a significantly negative impact on your business in the coming months if you fail to address them.

CMRA non-compliers: do you fall into one of these four categories? 

While we have seen an uptick in CMRA compliance among our customers, many have still not taken action.

This includes four main groups.

1. Those who are unaware of being non-compliant

If you are completely unaware of USPS regulations and have been operating without verifying your status as a CMRA, you still have time to take action now.

Click here to find out what you need to do. 

2. Those who think they are compliant but are not

You may have completed the old paper-based process and submitted all necessary paperwork to be verified as a CMRA.

However, that, unfortunately, is not a guarantee. 

The truth is that human error was a significant challenge with the outdated system. 

For example, while you might have completed and submitted your signed Form 1583A, it is still possible that the Postmaster dropped the ball and did not correctly enter your information into the USPS database.

If that is the case, you still, unfortunately, are not compliant.

Don’t just trust that everything is as it should be. Get proactive.

If you think you are compliant but want to confirm, click here to learn what steps to take. 

3. Those who don’t think any consequences will come from non-compliance

You might think that the United States Postal Service will not follow through on enforcing these regulation changes, but this is not a risk you should take.

As a mandate from the Department of Justice, you can be confident that the USPS will find you and take action against you if you are non-compliant. It is only a matter of time.

It’s not too late to protect your business. Click here to learn what you need to do.

4. Those who are unable to complete the transition to compliance

You may be trying your hardest to become compliant, but you’re having challenges completing the process. 

This could be due to issues with your Postmaster or problems with the online system.

If you are in this situation, don’t worry. Click here to discover what you can do to take further action. 

CMRA compliance: 4 steps to protect your business from revenue loss and brand damage

Ready to take action and get your business CMRA compliant? Here’s what you can do.

Step 1: check your CMRA registration status 

To start, ensure that your workspace mail-handling services are registered as a CMRA. Log in or create an account in the USPS Business Customer Gateway (BCG).

Click here to find step-by-step instructions for creating your account.

During account setup, you’ll be prompted to “Verify Address.” 

If your ZIP code appears, you’re registered. So, you can skip to Step 3. If it doesn’t, proceed to Step 2 to complete your registration.

Step 2: complete Form 1583-A (for unregistered operators) 

If your ZIP code isn’t listed, submit PS Form 1583-A (Application to Act as a CMRA) to your local post office. 

You will need to go prepared with: 

• 2 completed but unsigned 1583-A form copies (one for you to keep on file and one for the Postmaster’s records

• One completed but unsigned Form 1583

• Two forms of ID

Make sure you don’t leave without:

• A signed 1583-A form for your records

• Confirmation that your 1583-A will be uploaded to the USPS Facilities Database (FDB)

• The first and last name of the Postmaster or supervisor who met with you

If you don’t see your address in the BCG after 5–7 days, email the CMRA Program with all your information, including your form and USPS contact’s name. 

Once verified, proceed to Step 3.

Step 3: begin using the BCG portal 

All registered CMRAs need to utilize the BCG portal to manage client forms:

• Collect and upload notarized PS Form 1583 and two forms of ID for all clients, and manually enter information from Form 1583 on a web page for each client.

• This should be done within 90 days for new clients and by January 1, 2025 for all other clients. The USPS understands that some CMRAs will need more time to complete this process, but they do want to see some level of uploading activity indicating a good faith effort to comply.

• Update client information in the portal as required. 

iPostal1 Workspace partners receive automated support for this process—you shouldn’t contact customers for updated forms, as we will handle this for you.

Step 4: get additional support and resources 

If you need further help or encounter issues, try the following:

• Review resources on our website: FAQs, CMRA resources, including webinars and step-by-step guides, and the articles on our blog 

• Contact Carl Swanson, United States Postal Inspector of the USPS, and include all information, including a copy of your form, the dates you went to visit your Postmaster, who you spoke with, how many attempts you’ve made to contact someone about the issue, and how long it has been since you received a response

These new CMRA regulation changes are going to have a significant impact on non-compliant workspaces. We cannot stress it enough: do not ignore them.

Luckily, you don’t have to navigate this situation on your own. 

If you still have questions or need help complying with CMRA regulations, contact us today. Whether or not you are an iPostal1 Workspace partner, we are happy to help you navigate this transition.