There are various discounted rates of mail for certain organizations (non-profit) and preparation methods (sorted a certain way if there is enough volume [pieces] to qualify) as two examples. The were also discounts for other classes of mail if the mailing organization or person can qualify. A current example which does not produce fractions, is the discount on the postage for first class mail if paid by a meter imprint and not postage stamps. Today postage is 66 cents for a first class one ounce letter with stamps but only 63 cents if metered. The savings of three cents remains the same for just the first ounce, with no savings on additional ounces. Yet post cards remain at 51 cents no matter how paid, preprinted postal card, stamps or meter on a postcard.
Today there are still fractional (not round cents) postal rates, just no stamps issued for the rate. For example:
Quote:
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Currently EDDM-Retail is $0.198 (19.8 cents) for flats up to 3.3 ounces. If a stamp was issued for that mailing rate it would be 19.8 cents face value.
If one were to really study the various historic rates of postage fractional rates go back into the 1940s, and back to 1925 if counting half cent stamps as fractional (decimal) as while the value shown in 1/2 cent that is also .5 cent. The Liberty Series had a 1 1/4 (1.25) cent stamp. Up to then the not round number stamps were, 1/2, 1 1/2, 4 1/2, then 1 1/4 and 2 1/2 cents prior to as well as through the Prexies and then the Liberties. The transportation coils started the decimal point stamps which continued with other coils but did not spread to other formats.
The U. S. Domestic Postal Rates, 1872-XXXX (end date varies by edition)
by Henry W. Beecher & Anthony S. Wawrukiewicz discusses the fraction rates.
Edited for more information.