The following is an excerpt from an article I wrote on the Canada's Computer Vended Stamps for the Corgi Times. Mr. Harris refers to Mr. Robin Harris, the Editor of Unitrade. Mr. Harris explained the reason for applying tagging to Canadian postage stamps.
According to
Canada Post's April-June 2013 "DETAILS", the stamp image is pre-printed with secure fluorescent ink on label stock with the kiosk printing a two dimensional barcode and postage value that can be read by
Canada Post's equipment. It is tagged across the top of the stamp and down 2/3rds of the left and right sides.
Mr. Harris' research concerning tagging and cancellation is as follows:
"Canada's stamps have tagging to 'face' the envelope in the MLOCR (multi-line optical character reader) machines.
'Facing' an envelope is the first step in the mechanized process of mail distribution. It orients the envelope such that the front is facing forward and the stamp is in the upper right corner. This allows the MLOCR to read the postal code and apply the necessary bar coding on the back of the envelope.
The envelope then goes to the cancelling machine where a scanner visualizes the stamp and compares the stamp to an image database of [undefined] "current" Canadian postage stamps.
The kiosk and Picture Postage(tm) stamps have not been included in the image database ... so, they do not get cancelled (similar to much older Canadian stamps), even if the stamp is tagged.
Many receivers of covers with these stamps attached have noticed the lack of cancels.