diff --git a/tests/app/conftest.py b/tests/app/conftest.py
index 15f76846f..6b04e83fe 100644
--- a/tests/app/conftest.py
+++ b/tests/app/conftest.py
@@ -158,6 +158,7 @@ def sample_service(
     email_from=None,
     permissions=None,
     research_mode=None,
+    postage="second",
 ):
     if user is None:
         user = create_user()
@@ -170,6 +171,7 @@ def sample_service(
         'restricted': restricted,
         'email_from': email_from,
         'created_by': user,
+        "postage": postage,
     }
     service = Service.query.filter_by(name=service_name).first()
     if not service:
diff --git a/tests/app/v2/notifications/test_post_letter_notifications.py b/tests/app/v2/notifications/test_post_letter_notifications.py
index 4b42af6dc..734928088 100644
--- a/tests/app/v2/notifications/test_post_letter_notifications.py
+++ b/tests/app/v2/notifications/test_post_letter_notifications.py
@@ -20,6 +20,7 @@ from app.models import (
     NOTIFICATION_DELIVERED,
     NOTIFICATION_PENDING_VIRUS_CHECK,
     SMS_TYPE,
+    CHOOSE_POSTAGE
 )
 from app.schema_validation import validate
 from app.v2.errors import RateLimitError
@@ -95,12 +96,23 @@ def test_post_letter_notification_returns_201(client, sample_letter_template, mo
     mock.assert_called_once_with([str(notification.id)], queue=QueueNames.CREATE_LETTERS_PDF)
 
 
-@pytest.mark.parametrize('postage', ['first', 'second'])
-def test_post_letter_notification_sets_postage(client, sample_letter_template, mocker, postage):
-    sample_letter_template.service.postage = postage
+@pytest.mark.parametrize('service_permissions, service_postage, template_postage, expected_postage', [
+    ([LETTER_TYPE], "second", "first", "second"),
+    ([LETTER_TYPE], "first", "second", "first"),
+    ([LETTER_TYPE], "first", None, "first"),
+    ([LETTER_TYPE, CHOOSE_POSTAGE], "second", "first", "first"),
+    ([LETTER_TYPE, CHOOSE_POSTAGE], "second", None, "second"),
+    ([LETTER_TYPE, CHOOSE_POSTAGE], "second", "second", "second"),
+    ([LETTER_TYPE, CHOOSE_POSTAGE], "first", "second", "second"),
+])
+def test_post_letter_notification_sets_postage(
+    client, notify_db_session, mocker, service_permissions, service_postage, template_postage, expected_postage
+):
+    service = create_service(service_permissions=service_permissions, postage=service_postage)
+    template = create_template(service, template_type="letter", postage=template_postage)
     mocker.patch('app.celery.tasks.letters_pdf_tasks.create_letters_pdf.apply_async')
     data = {
-        'template_id': str(sample_letter_template.id),
+        'template_id': str(template.id),
         'personalisation': {
             'address_line_1': 'Her Royal Highness Queen Elizabeth II',
             'address_line_2': 'Buckingham Palace',
@@ -110,11 +122,11 @@ def test_post_letter_notification_sets_postage(client, sample_letter_template, m
         }
     }
 
-    resp_json = letter_request(client, data, service_id=sample_letter_template.service_id)
+    resp_json = letter_request(client, data, service_id=service.id)
 
     assert validate(resp_json, post_letter_response) == resp_json
     notification = Notification.query.one()
-    assert notification.postage == postage
+    assert notification.postage == expected_postage
 
 
 @pytest.mark.parametrize('env', [