ZIP is an acronym for the Zone Improvement Plan, but was also cleverly meant to imply the fact that mail travels more efficiently (and therefore faster) when senders use it.
ZIPcodes are used not only for tracking of mail, but in gathering geographical statistics in the United States.
ZIPcodes are numbered with the first digit representing a certain group of U.S. states, the second and third digits together representing a region in that group (or perhaps a large city), and the fourth and fifth digits representing more specific areas, such as small towns or regions of that city.
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