diff --git a/app/main/views/templates.py b/app/main/views/templates.py
index 998e8971e..767b6220f 100644
--- a/app/main/views/templates.py
+++ b/app/main/views/templates.py
@@ -581,11 +581,8 @@ def edit_service_template(service_id, template_id):
             'process_type': form.process_type.data,
             'reply_to_text': template['reply_to_text'],
         }
-        if (
-            current_service.has_permission("choose_postage") and template["template_type"] == "letter"
-        ) and form.postage.data in ["first", "second"]:
-            postage = {"postage": form.postage.data }
-
+        if current_service.has_permission("choose_postage") and template["template_type"] == "letter":
+            postage = {"postage": form.postage.data}
         else:
             postage = {}
 
diff --git a/app/notify_client/service_api_client.py b/app/notify_client/service_api_client.py
index 75485e745..e74420413 100644
--- a/app/notify_client/service_api_client.py
+++ b/app/notify_client/service_api_client.py
@@ -153,7 +153,9 @@ class ServiceAPIClient(NotifyAdminAPIClient):
     @cache.delete('service-{service_id}-templates')
     @cache.delete('template-{id_}-version-None')
     @cache.delete('template-{id_}-versions')
-    def update_service_template(self, id_, name, type_, content, service_id, subject=None, process_type=None, postage=None):
+    def update_service_template(
+        self, id_, name, type_, content, service_id, subject=None, process_type=None, postage=None
+    ):
         """
         Update a service template.
         """
@@ -172,10 +174,14 @@ class ServiceAPIClient(NotifyAdminAPIClient):
             data.update({
                 'process_type': process_type
             })
-        if postage:
+        if postage in ["first", "second"]:
             data.update({
                 'postage': postage
             })
+        elif postage == "service_default":
+            data.update({
+                'postage': None
+            })
         data = _attach_current_user(data)
         endpoint = "/service/{0}/template/{1}".format(service_id, id_)
         return self.post(endpoint, data)