When posting a letter, the zip code is very much essential as the postal authorities will recognize the area by the postal code. Each street and area in a city is given a unique postal code. This code clarifies the confusion that exists in the same name for the streets. In a city there will be two places with identical names and to remove the ambiguity in the names the unique postal codes are given. The postcode areas are identified by the post men after referring the zip code note book. Experienced post men know the postcode areas by looking at the zip code in the letters.

The address of the recipient must be written mentioning the name of the person and the address of the recipient. The post code of the recipient address also must be mentioned clearly in the space allocated in the postal cover. If the zip code is not written then the letter will not get delivered to the recipient address and will get returned to the sender with a fine amount. The people who do not know the zip code of the particular area can ask the post office personnel or the post master about the postcode areas. On telling the area, the post office personnel will give the postal code for the area and then the person can fill the zip code. People also can check the post code of the area before sending the letter in the post office. The list of postcode areas will be printed in a paper and stuck in front of the post offices for the reference of the people. There are diaries which also print the postcode areas in the front few pages. The international post codes are also published in such dairies for the reference of the readers.

The postal department employees use the post code to classify the letters according to the areas. The postal van will collect all the letters from the post boxes kept in various locations. Then these letters are delivered to the head post offices in the local area. Here the letters get classified according to the postcode areas and kept in separate racks. The post man responsible for delivering the letters to that particular area will take the letters in the area rack and start disbursing the letters to the individual house holds based on the address and the zip code mentioned in the letters.

Postcode is very much important due to steer a mail in the right address and it makes sure to delivery the mail in the right path and right channel. There are different procedures in the post code in the different country. Much of the countries are using the system of UK postcode. In UK postcode consists of in the five or six letters and this letters are divided in the two sections one is Outcode (area+ district) and other is Incode (sector+ unit). This postcode is linked with the delivery point and it is changed to a barcode in the mail type delivery. In the UK this combination of location make an exclusive reference for the mailbox and this is developed by the Royal mail in UK. So, every postcode number has included each mailbox number and the outcode section can introduce the area of a person. This outcode have 124 postcode number which divide in the area. The postcode areas number has been reserve in the postcode address file together. The outcode is the introduction of the town and locality. The initial part of incode introduces the specific position of the town as well as the post office on the area. The last two letters or number are showing a possession in the locality. To find a postcode address in UK someone must know the central postcode method and the present postal districts are included. In the UK postal code there are 15 delivery points in record and store in minimum 100 points. This postal code is alphanumeric and it is developed by the Royal mail in UK. If anyone is shifted his house from one place to another then he have to change his postcode areas number. Postcode is necessary for applying the home loan or buying a property. But most of the time the landers are not giving the loan due to the restriction of post code. So, as a result people are seeking place where the postcode restriction is little bit low and money can be saved. The same restriction is shown in the Australia where the people are planned to buy the property and bank have to pay less loan on the basis of postcode with high interest. Besides where the property is low price and in the rural area the bank has not taken the risk of 90% loan risk on the unrestricted postcode. So, before applying the loan the owner must consider about the restriction postcode in where he wants to buy property.