Move Update Compliance

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Move Update Background

In 2014, USPS Office of Inspector General conducted a study on cost associated with undeliverable as addressed (UAA) mail. It found that the U.S. Postal Service processed more than 158 billion mailpieces in fiscal year (FY) 2013. Of those, it identified almost 6.8 billion pieces (4.3{8438862481cfddea66453f7071ceeb45193fab2a704671a6fda9e7739ee397db}) as undeliverable as addressed (UAA) — mail that could not be delivered to the address on the mailpiece. Depending on the mail class, UAA mail is forwarded, returned to sender, or treated as waste. The Postal Service estimated it cost $1.5 billion in FY 2013 to process UAA mail. Reducing UAA mail is important to the Postal Service, which faces sizeable cost pressures, and to mailers who want to ensure their mailings reach their intended recipients. These costs are incorporated into postage paid by mailers. The cost of handling and disposing of UAA mail for any class or product is included in the total cost of that product. Most UAA mail is First-Class Mail or Standard Mail. The study’s objective was to identify opportunities to reduce and recover costs associated with UAA mail.

The Postal Service took pricing and verification related actions to reduce UAA mail. Recognizing that change-of-address (COA) was a key cause of UAA mail, the Postal Service developed Move Update standards to test whether business mailers update their mailing lists regularly. Specifically, if a mailer fails to meet set address accuracy threshold, the Postal Service assesses the mailer a surcharge on the portion of the mail that exceeded the acceptable tolerance. Postal Service estimated that these actions could have multiple benefits. First, it estimated that the actions could generate additional postal revenue. Second, the Postal Service would more equitably recover costs from those responsible for UAA mail, and third, they would bring the Postal Service into compliance with legal requirements to maximize incentives to reduce costs and increase efficiency. 

Move Update Standard

The Move Update standard was established as a means of reducing the number of mailpieces in a mailing that requires forwarding or return by the periodic matching of a mailer’s address records with change-of-address orders received and maintained by the US Postal Service. Mailers who claim presorted or automation prices for First-Class Mail or Standard Mail must demonstrate that they have updated their mailing list within 95 days before the mailing date.

The Postal Service offers four preapproved methods: Address Change Service (ACS), National Change of Address Linkage System (NCOALink) and ancillary service endorsements except for Forwarding Service Requested. Alternative methods that require separate approval also are offered for First-Class Mail. Mailers must use one of the preapproved or alternative methods to meet the Move Update standard.

The Move Update standard is met when an address used on a mailpiece in a mailing for any class of mail is updated with an approved method and the same address is used in a commercial First-Class Mail and USPS Marketing Mail, mailing within 95 days after the address has been updated. Except for mail bearing an alternative address format, addresses used on all pieces claiming USPS Marketing Mail prices are required to meet the Move Update standard. 

Address Change Service:

Address Change Service (ACS) is an electronic enhancement to traditional, manual methods of providing change-of-address (COA) information to mailers. The system is designed to reduce the volume of manual (printed) address-correction notifications handled by both the Postal Service and mailers and to centralize and automate the provision of address correction information to mailers.

Benefits:

  • ACS provides significant cost-saving benefits to mailers and the Postal Service.
  • ACS participants can use electronically generated address correction information to update their mailing lists more easily and in a more timely manner.

National Change of Address Linkage System:

National Change of Address Linkage System (NCOALink) is an address correction service provided to mailers through companies licensed by the Postal Service. Updated change-of-address information for the entire country is provided on a regular basis to the licensees by the Postal Service. The licensees match mailing lists submitted to them by mailers against the computerized information. If a match is made, NCOALink can update the address before it is printed.

Benefits:

  • Reduces undeliverable mail by providing the most current address information, including standardized and delivery point coded addresses, for matches made to the NCOALink file for individual, family, and business moves.
  • Prevents remailings after address corrections are received because the address correction is applied prior to the mailing.
  • Reduces mailer costs by reducing the number of undeliverable mailpieces.
  • Provides faster product/service marketing through accurate mail delivery.

Ancillary Service Endorsements:

Any mailer may use one of the four ancillary service endorsements below to request a notification of the addressee’s new address and provide the Postal Service with instruction on how to handle undeliverable-as-addressed mail. When these endorsements are used without participation in ACS, manual notices are provided.

Mailers may use the following endorsements with First-Class Mail, USPS Marketing Mail, and Parcel Select Lightweight, service to initiate this updating method:

Address Service Requested (ASR): The mailpiece is forwarded to the new location when possible and a printed notice is returned to the mailer with the new address information. This notice is then used by the mailer to update the address list.

  • Months 1-12: the mailpiece is forwarded at no charge; the mailer is provided a separate notice of new address and charged an address correction fee.
  • Months 13-18: for First-Class Mail, the mailpiece is returned with the new address attached at no charge. For USPS Marketing Mail and Parcel Select Lightweight, the mailpiece is returned at a weighted fee. The weighted fee is 2.472 times the applicable single-piece First-Class Mail, First-Class Package Service – Retail, or Priority Mail postage.
  • After month 18 or if undeliverable at any time: the mailpiece is returned with reason for nondelivery. Weighted fee charged for USPS Marketing Mail and Parcel Select Lightweight.

Return Service Requested (RSR): The mailpiece is returned with the new address information affixed. No forwarding service is provided. The return of First-Class Mail is provided at no charge. USPS Marketing Mail and Parcel Select Lightweight are returned at either the single-piece First-Class Mail, First-Class Package Service – Retail, or Priority Mail price, depending on the weight of the piece. The mailer then updates the address information in the file and may mail a new piece to the new address.

Change Service Requested (CSR): A separate notice of new address or reason for nondelivery is provided (in either case, an electronic address correction fee is charged); USPS disposes of the mailpiece. This endorsement is available only when used in conjunction with electronic Address Change Service for First-Class Mail pieces.

Temp-Return Service Requested (Temp RSR): This endorsement is only available for First-Class Mail pieces. The mailpiece is returned with the new address or reason for nondelivery attached. If this is a temporary change of address, the piece is forwarded; no separate notice of new temporary change-of-address is provided.

For an address to meet the Move Update requirement by this method, the mailer must send at least one letter or card to the address with an approved ancillary service endorsement within 95 days before reuse of the address in a First-Class Mail mailing. To complete the Move Update process, the mailer must make the address changes received as a result of the use of the approved ancillary service endorsement. It is recommended that mailers retain address correction records for up to two years.

Benefits: Ancillary service endorsements allow the sender to obtain, on request, the addressee’s new (forwarding) address (if the addressee filed a change-of-address order with the Postal Service) or the reason for nondelivery. These endorsements also provide the Postal Service with instructions for the disposition of undeliverable-as-addressed mail.

Alternative Methods:

Mailer Move Update Process Certification and USPS-approved alternative methods for mailers with legitimate restrictions on incorporating USPS-supplied change-of-address information into their mailing lists. The National Customer Support Center administers and approves both Mailer Move Update Process Certification and alternative methods.

Move Update Evaluation / Reporting

The Move Update address quality standard is a means of reducing the number of mailpieces in a mailing that requires forwarding or return by the Postal Service. Mailers who claim presorted or automation prices for First-Class Mail or USPS Marketing Mail must use an approved Move Update method to ensure the address used on the piece has been updated within 95 days prior to the postage statement finalization date.  Addresses that are not updated may impact your overall address quality measurement.

The USPS validates Move Update address quality through an automated process.  As mailpieces bearing an Intelligent Mail barcode are processed, name and address information from the mailpiece is compared against the Postal Service Change of Address (COA) database to identify mailpieces that have not been updated with a new address. Quality is measured across a calendar month and any pieces exceeding the 0.5{8438862481cfddea66453f7071ceeb45193fab2a704671a6fda9e7739ee397db} tolerance level will be assessed $0.08 per piece. Results of this evaluation are reported on the Mailer Scorecard.

The Mailer Scorecard is an online reporting tool available to eDoc submitters, Mail Preparers, and Mail Owners providing a summary and detailed information on their mail quality over the calendar month.  All Change of Address (COA) errors, both above and below the error threshold, are available to mailers on the Mailer Scorecard. A Move Update error is logged when the address on the mailpiece has not been updated due to a COA record where the more current of the COA Move Effective and COA Create date is between 95 days and 18 months prior to the postage statement finalization date.

The following information is provided on the scorecard to assist in identifying and resolving any move update or undeliverable mail issues that have been identified;

  • MoveUpdate eligible pieces – Number of mail pieces in eDoc that must meet the Move Update standards
  • COA Errors – Number of FCM & MKT pieces that did not have updated address. These pieces are assessable.
  • UAA Warnings – Pieces that had incorrect addresses for other reasons that COA. UAA pieces are not assessable but provide valuable information to assist in reducing undeliverable mail pieces.

US Postal Service announced that assessment for Move Update non-compliance will commence in April for mail processed in March 2018.