ADDRESS Listsmove Update IS AUPDATING

DRAFT

WHY UPDATING

ADDRESS LISTSMove Update IS AUPDATING

ADDRESS LISTS IS A

SMART MOVE.

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OVER 40 MILLION

AMERICANS

change addresses annually

OVER 44 MILLION AMERICANS CHANGED ADDRESSES ANNUALLY IN 2002

Many of them are good customers of yours – consumers you value enough to send First-Class Mail. But not But not all of them told you they moved.

If you want to keep these customers, you’ve have got to make sure your mail is still reaching them.

That’s why it’s good business to update your lists now. If you plan on mailing at discounted First-Class postage rates, then you must have corrected them – within 180 days or 6 months before the mailing – by one of these USPS-approved updating methods:

Address Correction Anci

Address Change Service (ACS)

National Change of Address (NCOA)

FASTforward SM

Move Update Alternative Procedure (MUAP). Note: Not all mailers are eligible to use an MUAP. To use an MUAP eligible mailers must apply for and receive mailer-specific approval prior to using an MUAP to comply with Move Update.

That’s why it’s good business to understand the choices and the select the method (or methods) that are appropriate for your business.

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MOVE UPDATE

Move Update is a required process for updating names and addresses in order to obtain discounted rates.

Since July 1997, all addresses on discount-rate First-Class mailings must have been exposed to name and address correction – within 180 days before mailing by one of the four USPS pre-approved methods, or an approved alternative process updating method:

• Address Correction Ancillary Service Endorsements (ACR)
• Address Change Service (ACS)
• National Change of Address (NCOA)
• FASTforward™
• Move Update Alternative Process

In order to enter reduce (discounted) rate First-Class mail, the person entering the mail must certify, on the postage statement submitted, the addresses on the mailpiece have been updated by one of the five Postal Service approved methods within the past 180 days. The five Postal Service approved methods of updating mailing lists and complying with Move Update are described later in this document.

UPDATING CUTSREDUCES WASTE.

Every piece of every class of mail has onetwo things in common: the intended recipient and the the an address. When both are theat address is accurate and complete, the mailpiece can be delivered quickly and easily.

When either the recipient or the address is out of dateoutdated, inaccurate or incomplete the mailpiece could becomes Undeliverable Asas Addressed (UAA) – a waste of time, effort, and money for both mailers and the Postal Service. Mailpieces that must be forwarded to a new address as well as mailpieces that must be returned to the sender odisposed of by the USPS are UAA.

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Move UpdateAPPROVED MOVE UPDATE OPTIONS

ENDORSEMENTS

Since July 1, 1997, all mailers who have submitted First-Class Mmail at the presorted or automation rates have had to certifyied on the postage statement that they have used one (or more) of the USPS approved list-cleaning methods of updating the addresses used within the past 180 days or 6 months. First-Class Mmail sent at the full single piece rate is not required to comply with Move Update. Thus, the addresses on single piece First-Class mailpieces do not require have to have been updateing d prior to mailing; however, it is a good practice to make certain that your addresses are current, accurate and complete.

Mailers can use ancillary service endorsements (ASC) to (1) request an addressee’s new address and (2) provide the Postal Service with instruction on how to handle their undeliverable as addressed (UAA) mail.

The following endorsements may be used on First-Class Mail to initiate an updating method that meets the requirements for Move Update. To complete the updating process the mailers must have a process for applying the address changes it receives as a result of their use of the approved ancillary service endorsement (ASC).

• Return Service Requested. If UAA, the mailpiece is returned with a new address or reason for non-delivery; no charge.

• Address Service Requested.

Months 1 – 12: mailpiece forwarded; no charge; separate notice of new address provided; address correction fee charged.

Months 13 – 18: mailpiece returned with new address attached; no charge.

After month 18 or if undeliverable: mailpiece returned with reason for non-delivery attached; no charge.

A third endorsement option is available for First-Class Mail if it used in conjunction with electronic Address Change Service (ACS). (See next page for details.)

Change Service Requested. Separate notice of new address or reason for non-delivery provided; in either case, address-correction fee charged; mailpiece is not forwarded or returned, but is disposed of by the Postal Service.

For an address to meet Move Update requirement via the use of an Ancillary Service Endorsement, at least one letter or card must have been sent to the address with an approved ancillary service endorsement within 180 days of the reuse of the address in a reduced (discounted) rate First-Class mailing. Mailers should retain returned mailpieces and correction notices for two years in the event the Postal Service asks them to document they have met the Move Update requirement.

If you are already a meeting these new Move Update compliant standards, you have taken a positive step toward more reliable mail delivery. You are also protecting your postal discount availabilities.

But some mailers still aren’t sure of proper Move Update procedures or have yet to select and implement a Move Update process. We’ve outlined the basics in this brochure. And we’ve included sources for answers to specific questions you might have. If you have any other questions or need additional information concerning updating methods or the move update requirement, please refer to the Domestic Mail Manual, E130.3.3. or call the National Customer Support Center (NCSC) at (800) 238-3150.

That’s because we want all our customers to keep earning the best values in business mail while helping us provide the service they deserve.

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GETTING STARTEDADDRESS CHANGE SERVICE (ACS)

To qualify for discounted First-Class Mail postage rates, the addresses on all mailpieces submitted for discounted First-Class rates must have been updated using one of five USPS-approved methods of updating addresses within 180 days (or six months) of the use of the address. Mailers may need to experiment with several options to determine the most effective method or combination of methods to update their mailing addresses.

Mailers need to understand that compliance with the Coding Accuracy Support System (CASS) and/ or the Multi-line Accuracy Support System (MASS) does not constitute compliance with Move Update. While mail sent at discounted First-Class rates must use CASS-certified addresses or be processed on MASS-certified equipment, this requirement is separate from Move Update and compliance with one requirement does not constitute compliance with the other. Similarly, the fact that addresses may have been subjected to address element correction (AEC) or deliver point validation (DPV) to determine if the address is an actual USPS delivery address does not constitute compliance with Move Update. The use of AEC or DPV is not currently required for mail sent at discounted First-Class rates. Its use, however, is an excellent practice. These processes (CASS/MASS and DPV/AEC) are concerned with the accuracy and completeness of the physical locationaddress to which the mail is addressed, these processes do not address the issue of the person to whom the mail is sent. to the address. Move Update is concerned with identifying people have moved so that mail addressed to these people will not go to their old addresses.ACS offers an enhancement to the traditional manual address correction notification process (hard copies). It is used with endorsements, and provides Change of Address (COA) information or reason for non-delivery electronically. Each electronic notification costs 20¢. However, if manual notifications are requested, they are provided at the hard copy rate of 70¢ each. To participate, mailers must modify their envelope, address labels or address blocks to include an ACS participant code and keyline. A mailer-assigned keyline is required if the mailers wants to participate in the nixie service.*

With ACS, address correction notification may be scheduled as needed – daily, weekly, biweekly, monthly, or bimonthly. Under ACS, the USPS provides COA information on computer cartridge, CD-ROM, and the Website. By processing electronic input, mailers can expect to speed entry, reduce errors, and lower processing costs.

* Nixie service informs mailers when an address on the mailer’s lists is not deliverable as addressed for reasons other than a customer name.

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ANCILLARY SERVICE ENDORSEMENTS

Mailers can use ancillary service endorsements to request an addressee’s new address and to provide the Postal Service with instructions on how to handle Undeliverable As Addressed (UAA) mail. Depending upon the ancillary service endorsement used, First-Class UAA mail is (1) forwarded, (2) returned to sender, or (3) treated as dead mail to be disposed of by the Postal Service.

Return Service Requested. If UAA, the mailpiece is returned without charge with new address or reason for non-delivery.

Address Service Requested.

Months 1 – 12: mailpiece forwarded; no charge; separate notice of new address provided; address correction fee charged.

Months 13-18: mailpiece returned with new address attached; no charge.

After month 18 or if undeliverable: mailpiece returned with reason for non-delivery attached; no charge.

A third endorsement option is available for First-Class Mail if it is used in conjunction with electronic Address Change Service (ACS). (See next page for details.)

Change Service Requested. Separate notice of new address or reason for non-delivery provided; in either case, address-correction fee charged; mailpiece is not forwarded or returned, but is disposed of by the Postal Service.

Note: Mailers should also retain returned mailpieces and correction notices in the event the Postal Service asks them to prove they have met the Move Update standards.

A fourth ancillary service endorsement "Forwarding Service Requested" may not be used to comply with Move Update.

NATIONAL CHANGE OF ADDRESS (NCOA)

This option is available only through companies licensed by the Postal Service to offer this service. The mailer’s computerized list(s) is (are) matched with official Postal Service customer provided permanent COA orders received from individuals, families, and businesses within the past 4 years. These official records are updated and provided to NCOA licensees’ weekly. NCOA provides mailers with ZIP+ 4® codes plus two extra digits for delivery point barcoding and costs on an average as little as $2 to $5 per thousand addresses.

Before using the list processed through NCOA, the mailer must apply the address change. Because NCOA is used prior to mailing, it greatly reduces Undeliverable as Addressed (UAA) First-Class Mail, which reduces cost, for both the mail preparer mail and the Postal Service for re-handling those mailpieces. The “discount” for presorted and automation First-Class Mail is at least $50 per thousand and could be as high as $95 per thousand.

NCOA also provides mailers with documentation that shows a list was updated on a given date andthe Move Update requirements have been met if the address for which a move is indicated is updated.

Optional Ancillary Service Endorsement Locations

Ancillary service endorsements may be placed in any of following four places: (1) under the return address, (2) above the delivery address block, (3) to the left of the postage area, and (4) below the postage area as shown on the following diagram: (See Postal Bulletin Issue 21939 - February 13, 1997)

To coomply with Move Update a mailer using Ancillary Service Endorsements must in addition to applying an acceptable Ancillary Service Endorsement to a e mail piece going to each address to which the mailer sends mail. This process occurs once every 180 days or six months, apply the address change information provided by the USPS as a result of the application of an acceptable Ancillary Service Endorsement prior to sending

additional mail to that person at that address.

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ADDRESS CHANGE SERVICE (ACS)FASTforward™

There are two versions of FASTforward™. Use of either version complies with Move Update.

The Multiline Optical Character Readers (MLOCR) version allows users to comply with the Move Update requirements as they actually process mail provided the mail is automation-compatible. Licensed FASTforward™ MLOCR users must obtain an approved interface from their MLOCR vendors. As mail is run through the MLOCR, the system automatically checks names and addresses against an encrypted 4-year national postal database, containing only permanent COA records. If a change of address is applicable and imprints the correct address and barcode on the mailpiece.

The Mailing List Correction (MLC) version of FASTforward™ provides FASTforward™ licensees with the ability to update computer-based name and address mailing lists electronically prior to the creation of the mailpiece. This version also requires licensees to have a FASTforward™ interface that meets Postal Service specifications.

The new address information is obtained through a matching process of the name and address contained in the mailing list against the encrypted 13 months national database

of permanent COA records. Address change information is only provided for those records that have a matching name and an old address. In the event new address information is returned, the effective date of the move and the carrier information for the new address is also returned. This returned information must be used to update the mailing list. Address Change Service (ACS) offers an enhancements to the traditional manual address correction notification process (hard copies) provided thatby Change Of ASdressAddress (COA) information received via ACS is applied to the address record within 180 days of the reuse of the address by a mailer for First-Class presorted or automated mail. It is used with endorsements, and provides COA information or reason for non-delivery electronically by computer tape, cartridge, diskette or CD. Each electronic notification costs 20¢. However, if manual notifications are provided, they are provided at the hard copy rate of 70¢ each. To participate, mailers must modify their address labels or address blocks to include an ACS participant code (and keyline if the mailer wiheswants to participate in the nixie service1.).

With ACS, address correction notifications may be scheduled as needed – daily, weekly, biweekly, monthly, or bimonthly. And by processing electronic input, mailers can expect to speed entry, reduce errors, and lower processing costs.

1 Nixie service informs mailers when an address on the mailer's list is close to matching a USPS change of address record but not close enough to meet the strict USPS matching guidelines. The nixie codes provide the reason a match could not be made with the NCOA (see next page) file so that mailers can investigate the address record and provide necessary corrections. A no-match to the NCOA file does NOT return the new address - the Nixie service option only notifies the mailer that an address was close to matching but did not match a NCOA address. Nixies service also notifies a mailer when an address is undeliverable for a reason other than a customer move record.

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ALTERNATIVE PROCEDURES

In addition to the four methods of updating mailing addresses and complying with Move Update described above there are situations in which a mailer can use an alternative method to comply with Move Update. If in doubt, a mailer should discuss specific questions with the Postal Service.

LEGAL RESTRAINT

Some mailers claim there is a legal restriction that prevents them from incorporating Postal Service change of address (COA) information without direct notification from the addressee.

1. The mailers must request approval to use an alternate method of meeting the requirement. Unless the mailer is a federal, state, or local government entity, the request must be accompanied by citation of the specific legal restriction, including copies of the statutes and/or regulations.

1. If approved, the mailer must use the following alternate method:
2. Postal Service COA information must be obtained by one of the authorized methods (ACS, NCOA, FASTforward™, or ancillary service endorsement) no more than 180 days before the mailing.
3. For each address identified as a COA in 2.a., the mailers must contact the addressee within 30 days after receiving the COA information to request confirmation of the move in a format that will satisfy the mailer’s legal requirements. The form (written, telephone, electronic, etc.) of this contact is the mailer’s option. If written notification is used, it must be sent to the new address, and any enclosed reply piece must be barcoded.
4. All COA confirmations received in response to 2.b., must be incorporated in the mailer’s list within 30 days of receipt.
5. For two years, the mailer must retain documentation of this process, including dates on which each step was performed, number of COAs identified, number of confirmation requests, and evidence that demonstrates the updates have been incorporated into the list. Documentation must be made available to the Postal Service upon request.

Some mailers claim they can not use NCOA because of legal or corporate policy restrictions on the disclosure of their address lists.

These mailers should have no difficulty complying with the move update

requirement using on-piece endorsement or internal FASTforward™ matching