Unless what your mailing won't fit in the machines, they WILL still run everything through the sorting machines even if you hand cancel. We just sent our STDs and had them hand cancelled, but they still came marked up. So I researched further, and they send everything, no matter what, through the machines, unless it fits the guidelines for not going through the machines, in which case you have to pay extra postage for non-machinable stamps. Luckily, we didn't pay for the hand cancelling, but just an FYI so no one else is caught off guard.
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