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When the Move Update initiative was initially introduced by the U.S. Postal Service (USPS) in 1997, the regulations only applied to First Class mail and no penalties were assessed. At the end of 2008, the regulations were extended to all Standard mail. The final phase of the Move Update rollout was completed in January, and the USPS is now assessing penalties on all mail that does not comply with the Move Update standards.
The Move Update examines whether mailers are appropriately and effectively updating their members’ addresses in accordance to the National Change of Address (NCOA) database. Mail must have been processed using an accepted Move Update method within 95 days of the change of address form being filed.
Let’s examine the various accepted methods and go into further detail on what these new standards mean to your business.
While there are four approved methods that can be used to comply with the Move Update standards, the most common among printers that are also involved in mailing is the NCOALink. This software makes change-of-address information available to all mailers in an effort to eliminate undeliverable mail prior to entering the mail stream. The Ancillary Service Endorsement (ASE) method is also utilized by many printers, and refers to the wording added on the front of a mail piece telling the USPS how to handle the mail if deemed undeliverable as addressed at the time of mailing.
The penalties associated with the Move Update can be substantial to your customers’ businesses. Non-compliant mail is assessed at $0.07 per piece, applied to the entire mailing for Standard mail and at a single-piece rate for the entire mailing for First Class mail. The USPS offers some leniency, not assessing penalties if fewer than five errors are found during verification, or if 70 percent or more of the addresses with change of address forms filed have been updated.
The time to worry is if more than 30 percent of the addresses that should have been updated were not, as the mail now becomes non-compliant. For example, someone with a 1,000-piece mailing with 100 moves on file must update at least 70 of the pieces with the new addresses. If they only update 60 of the 100 pieces, then they fall below the 70 percent threshold by 10 percent and, therefore, 10 percent of the entire mailing will be assessed with the $0.07 per piece charge.
Ultimately, the costs associated with the compliance are variable and depend on the size of the mailing being distributed by each mailer. Once the penalty is assessed, there is the option to pay the additional fees or withdraw the entire mailing, both of which are costly.
The USPS holds the mailing agent accountable for Move Update compliance, which means that the bulk mail acceptance clerk will turn to your company for the decision to pay the penalty or remove the mailing completely. It is important to communicate with your customers and remind them of the need to update their mailing lists as change of address forms become available. While having this conversation, it is important to develop a policy on paying penalties or withdrawing the mailing so you are prepared should the bulk mail acceptance clerk contact you.
As a print provider, customers count on you to be current on the most recent trends, and in possession of the necessary technology to help them avoid additional fines. There are multiple steps that can be taken to avoid Move Update penalties, such as communicating with vendors to ensure an approved method is being deployed. This is where NCOALink is helpful because it takes place pre-mailing. If updating those addresses pre-mail is not an option, sending those pieces at the full First Class postage rate is a good alternative solution.
Additionally, enhancing your business model to develop manual or IT systems and procedures to ensure proper updating of the mailing list is a must. Offering customers reports that showcase inaccurate mailings assures them that you are doing everything you can to help lower the risk of non-compliant mail slipping into the mailstream.
Adopting these practices now will be beneficial in the future because the USPS implements new regulations and requirements regularly. As a print and mail provider for businesses responsible for mailing out large quantities of communications, it is important to stay ahead of the curve to avoid being impacted by this update and any that occur in the future. PI
About the Author
Harry Stephens is president, CEO and founder of DATAMATX, one of the nation’s largest privately held, full-service providers of printed and electronic billing solutions. As an advocate for business mailers across the country, Stephens is actively involved in several postal trade associations. He serves on the executive board of the Greater Atlanta Postal Customer Council, Major Mailers Association, PCC Advisory Committee and the National Postal Policy Council. He is also president of The Imaging Network Group, an association for electronic service bureaus.
The Move Update examines whether mailers are appropriately and effectively updating their members’ addresses in accordance to the National Change of Address (NCOA) database. Mail must have been processed using an accepted Move Update method within 95 days of the change of address form being filed.
Let’s examine the various accepted methods and go into further detail on what these new standards mean to your business.
While there are four approved methods that can be used to comply with the Move Update standards, the most common among printers that are also involved in mailing is the NCOALink. This software makes change-of-address information available to all mailers in an effort to eliminate undeliverable mail prior to entering the mail stream. The Ancillary Service Endorsement (ASE) method is also utilized by many printers, and refers to the wording added on the front of a mail piece telling the USPS how to handle the mail if deemed undeliverable as addressed at the time of mailing.
The penalties associated with the Move Update can be substantial to your customers’ businesses. Non-compliant mail is assessed at $0.07 per piece, applied to the entire mailing for Standard mail and at a single-piece rate for the entire mailing for First Class mail. The USPS offers some leniency, not assessing penalties if fewer than five errors are found during verification, or if 70 percent or more of the addresses with change of address forms filed have been updated.
The time to worry is if more than 30 percent of the addresses that should have been updated were not, as the mail now becomes non-compliant. For example, someone with a 1,000-piece mailing with 100 moves on file must update at least 70 of the pieces with the new addresses. If they only update 60 of the 100 pieces, then they fall below the 70 percent threshold by 10 percent and, therefore, 10 percent of the entire mailing will be assessed with the $0.07 per piece charge.
Ultimately, the costs associated with the compliance are variable and depend on the size of the mailing being distributed by each mailer. Once the penalty is assessed, there is the option to pay the additional fees or withdraw the entire mailing, both of which are costly.
The USPS holds the mailing agent accountable for Move Update compliance, which means that the bulk mail acceptance clerk will turn to your company for the decision to pay the penalty or remove the mailing completely. It is important to communicate with your customers and remind them of the need to update their mailing lists as change of address forms become available. While having this conversation, it is important to develop a policy on paying penalties or withdrawing the mailing so you are prepared should the bulk mail acceptance clerk contact you.
As a print provider, customers count on you to be current on the most recent trends, and in possession of the necessary technology to help them avoid additional fines. There are multiple steps that can be taken to avoid Move Update penalties, such as communicating with vendors to ensure an approved method is being deployed. This is where NCOALink is helpful because it takes place pre-mailing. If updating those addresses pre-mail is not an option, sending those pieces at the full First Class postage rate is a good alternative solution.
Additionally, enhancing your business model to develop manual or IT systems and procedures to ensure proper updating of the mailing list is a must. Offering customers reports that showcase inaccurate mailings assures them that you are doing everything you can to help lower the risk of non-compliant mail slipping into the mailstream.
Adopting these practices now will be beneficial in the future because the USPS implements new regulations and requirements regularly. As a print and mail provider for businesses responsible for mailing out large quantities of communications, it is important to stay ahead of the curve to avoid being impacted by this update and any that occur in the future. PI
About the Author
Harry Stephens is president, CEO and founder of DATAMATX, one of the nation’s largest privately held, full-service providers of printed and electronic billing solutions. As an advocate for business mailers across the country, Stephens is actively involved in several postal trade associations. He serves on the executive board of the Greater Atlanta Postal Customer Council, Major Mailers Association, PCC Advisory Committee and the National Postal Policy Council. He is also president of The Imaging Network Group, an association for electronic service bureaus.
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