The cost to the USPS for undeliverable mail was 1.58 Billion dollars in 2007 and they are doing everything possible to reduce the number to keep postage rates as low as possible.
So what is NCOA? NCOA stands for National Change of Address. When someone moves and they fill out a change of address form to forward their mail, the information they provide is entered into a national database so that incoming mail can be redirected and equally important, mailers are able to update their mailing lists before they mail, rather than letting the USPS forward the mail. When we talk about doing an NCOA for our customers, we mean taking your list and comparing it to the national database of people who have moved and then updating your list with the new information. You reduce your undeliverable mail and the intended recipient gets their mail when you planned.
Why do I need to know about NCOA? The USPS has required that mailers keep their lists updated when mailing at Discounted First Class(Presort First Class) rates since 1997. Their reasoning is that they don’t want to incur the cost of forwarding your mail if they allowed a discounted rate to mail your project. Effective November 23, 2008, the USPS now requires that all Presorted Standard and Non Profit mailings also meet the update requirements. The USPS has several options for the mailer to use to meet their update requirements. By the way, the USPS calls this update requirement a “Move Update Requirement”.
Move Update states that you have used one of the following mechanisms for the list you wish to mail at least every 95 days.
The first option is NCOA. We already talked about it above but there is a small cost per address to process the list to meet this requirement. We can provide you with the address changes so you can update your list for the future.
The second option is called an “Ancillary Service Endorsement”. You’ve seen these before. “Address Service Requested” and “Return Service Requested”, printed on the mailpiece, usually under the return address. Each option provides a different level of service from the USPS and there is a cost per piece returned that is a minimum of 50 cents/piece and can be considerably more, depending on how long the person has been gone from the old address and the weight of the mailpiece. If you haven’t updated your list recently, we do not recommend this method because you will likely incur a huge cost for pieces returned. You are much better off doing the NCOA option first and then using a Service Endorsement next time. Don’t forget, you have to meet the requirement at least 95 days from the mailing date.
There is one variation on a theme that is great if you are a frequent mailer. Another Ancillary Service Endorsement is available that allows you to get the address change information at a much lower cost. It involves obtaining a special code for your mailings and then when we prepare your mail we apply a code to the mailpiece that allows the USPS equipment to read it when processing your mail. The USPS then provides the info to you electronically. The USPS charges a much lower per piece cost for this service. We can assist with setting you up with the USPS if you feel this is a good fit for your mailing frequency. You need to allow a couple of weeks to get this set up prior to mailing.
If you love pain and suffering, we invite you to read the entire USPS information on the Move Update, copied from the USPS publication noted below. You can also find all such publications at: http://pe.usps.com/
December 4, 2008
507d, Ancillary Service Endorsements
The Move Update standard is a means of reducing the number of mailpieces in a mailing that require forwarding or return by the periodic matching of a mailer's address records with customer-filed change-of-address orders received and maintained by the 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), FASTforward, and ancillary service endorsements except for Forwarding Service Requested. Alternative methods that require separate approval also are offered for First-Class Mail mailings. 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 First-Class Mail or Standard 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 Standard Mail rates will be required to meet the Move Update standard.
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. Mailers add a unique mailer identification code to the address area of their mailpieces to identify them as ACS participants.
ACS may be used on any class of mail to qualify the addresses in a mailing list that is also used for First-Class Mail mailings. First-Class Mail mailers who are ACS participants may use the ancillary service endorsement "Change Service Requested" to receive an electronic notice of the change-of-address information and prevent the mailpiece from being forwarded to the new address or returned to the sender. Electronic notices can be obtained on a variety of electronic media.
Per electronic notice (or manual notice for electronic option customers) issued:
Per automated notice issued (with OneCode ACS and Intelligent Mail barcode):
A mailer may determine the frequency with which to use an ancillary endorsement and ACS participant code, as long as the mailer can certify that each address in a First-Class mailing has been updated for customer moves within 95 days before the mailing date.
ACS is available for First-Class Mail, Periodicals, and Standard Mail. ACS is available monthly, weekly, or more frequently, depending on the needs and ACS volume of the mailer. ACS via electronic notification is not available from all post offices.
See example of an ACS code in Quick Service Guide 708 , Optional Information Lines.
Benefits:
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 on tape or disk against the computerized information. If a match is made, NCOALink can correct the address before it is printed.
Benefits:
For more information about NCOALink, including a list of licensees, see Postal Explorer ( pe.usps.com ) > Address Quality > Address Management Services > Move Update >
NCOA Link Systems.
The FASTforward system consists of a Postal Service-owned and user-licensed computer system containing FASTforward name- and address-matching software and a change-of-address database. The FASTforward database is updated weekly.
Multiline optical character readers (MLOCRs) - Licensed FASTforward MLOCR users must obtain an approved interface from their MLOCR vendors.
For a list of FASTforward licensees, see Postal Explorer ( pe.usps.com ) > Address Quality > Address Management Services > Move Update > FASTforward > Licensees.
Benefits: When FASTforward is used in conjunction with either MLOCR (and/or RVE) processing, mailpieces avoid the delays associated with traditional mail forwarding.
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 and Standard Mail service to initiate this updating method:
Address Service Requested: 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 (manual $0.50, electronic, see page one).
• Months 13-18: for First-Class Mail, the mailpiece is returned with the new address attached at no charge. For Standard Mail, the mailpiece is returned at a weighted fee. The weighted fee is 2.472 times the applicable single-piece First-Class Mail or Priority Mail postage.
• After month 18 or if undeliverable at any time: the mailpiece is returned with reason for nondelivery attached at no charge.
Return Service Requested: 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. Standard Mail is returned at either the single-piece First-Class Mail 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: 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: 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 discounted 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.