Postage label dispenser for dispensing application ready/lined labels including a re-lining station facilitating the fabrication of lined labels

A postage label dispensing system for dispensing adhesive-backed postage labels comprising (i) a means for stripping the adhesive-backed face material from the liner material of a label material, (ii) a first cutting apparatus, downstream of the stripping means, for cutting the face material to a desired length and producing an adhesive backed postage label having a postage indicia printed thereon, (iii) a means for attaching re-lining material to the adhesive backed postage label (iv) a second cutting apparatus, downstream of the lining means, for cutting the re-lining material to dispense at least one lined postage label, and (v) a processor for controlling the operation of the first and second cutting apparatus. A deflector guide is disposed between the stripping and re-lining means and is re-positionable to engage and disengage the adhesive backed postage labels produced by the upstream stripping station. In the engaged position, the postage labels are directed to the re-lining station and dispensed as a lined label. In the disengaged position, the postage labels are dispensed as application ready labels.