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  • Writer's pictureAndrea Barrett

What is Postal Code and Zip Code?

Postal code and zip code are two terms that tend to confuse a lot of people. Both serve similar purposes but work in different ways. They differ in terms of what they perform, how long they are and what the exact bigger location is. It is essential to know what the difference between them is so that one can understand their functions and use them appropriately.



Postal codes are used to identify a specific geographic region within a country. The code helps in speeding up mail delivery by dividing regions into smaller groups that are easier to sort. The code consists of numbers and sometimes letters as well. It can also have punctuation marks and spaces as well.


The zip code is a five-digit numeric code that is used to categorize postal regions. It was introduced in 1963 by the USPS as part of a plan to improve the efficiency of mail delivery. Its first three digits correspond to a zone improvement plan sectional center facility, and the last two digits designate the postal office within that SCF’s territory.


Postal codes are based on city boundaries, but zip codes are not. They are based on routes, mail-sorting facilities and other factors. This makes them a better metric for tracking mail than simply using city or state names. This is particularly important for businesses that send large volumes of mail, such as magazine distributors or insurance providers. They need a more accurate method of tracking and targeting their customer base.


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