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Effective January 5, 2013 the USPS has issued new guidelines for Folded Self-Mailers (FSM). FSM and specific non-envelope pieces must be designed to meet the new standards in order to receive automation letter discounts.
Detailed information with helpful diagrams from the USPS can be found by clicking the following link:
Aspect Ratio For Letters and Cards
To avoid postal surcharges, the aspect ratio of your mail piece should conform to the following rule:
Length divided by height = 1.3 to 2.5
Example: a #10 envelope (9.5x4.125) is 9.5 divided by 4.125 = 2.30. A square envelope would have an aspect ratio of 1.0 and would not be eligible for automation discounts.