Confusion and Fear re: Move Update Compliance

Still confused about the Move Update requirement? Wondering what the consequences for not complying might be? This article will attempt to remove the confusion and fear that is gripping many over the Move Update requirement.

Move Update:
Think of it like your Mom or Dad telling you to eat your vegetables, you may not want to eat them, but you now realize that they are good for you. It’s the same thing here!

Move Update is the requirement that forces mailers of Automation Standard and Commercial First Class Mail™ to do something to make sure that your address lists are up to date when you mail.

Why?• Costs the USPS 2 Billion /Yr to Return/Dispose of Undeliverable mail
• 17% of Consumers and Businesses move every year – 45 Million!
• 24% of all mail have some kind of address problem
• 2.72% of mail is never delivered
• 17% of all mail is delayed
Or, to put this into hard numbers:
• 10 Billion Pieces are affected each year.
• 1.6 Billion are Returned
• 1.985 billion are Forwarded
• 6.0 Billion are Discarded

OK – So how do I comply?
You need to comply with a Pre-Mailing method within 95 days of your mailing and then you can keep your list current by utilizing a Post-Mailing method.

For most of us, the easiest way is to use an NCOA-Link product that will satisfy it quickly and easily. Most Mail management software packages have a NCOA-link solution.

For our Satori Bulk Mailer customers, when they run their lists thru this process, it actually does 5 things to improve the deliverability, all without the hassle of exporting and re-importing the data. Satori is a full service NCOA Provider and will update registered move data up to 48 months old.

Satori’s “Move Update” features:
CASS – 1st step to break the address down to its component parts, Standardizes and corrects the Physical part of the address to USPS specifications
DPV – Delivery Point Validation – Further corrects the address to the actual delivery point and reports back if the secondary address info (Suite #, Unit #, Apt #) is accurate, missing or wrong.
LACS-Link – Changes old Rural Routes into physical delivery address –Helps emergency service providers locate rural addresses.
Suite-Link – Adds or changes Secondary address information for Businesses – (Suite #, Unit #)

Move Update – Fixes the Personal portion of the address by changing the addresses based upon moves registered with the USPS.

Are there other ways I can satisfy the Move Update requirement?
Yes, there are “Post-Mailing” methods such as using Ancillary Service Endorsements, ACS, or One Code ACS (IMB). All of these Post Mailing methods require that the list has gone thru some other “Pre-Mailing” method within 95 days of the mailing, and then you can use these “Post-Mailing” methods to keep the list current.

Pre-Mailing Methods:
NCOA or NCOAlink
Directly Acquired addresses
First-Class Mail used with approved Ancillary Service Endorsement
Fast-Forward

Post-Mailing Methods:
Ancillary Service Endorsements – Correct your data after the fact
ACS
One-Code ACS (IMB)

Exceptions:
Using Alternative Address Formats like “Current Resident/Occupant” are exempt, but not very personal. If the data came directly to you within 95 days of the mailing, like thru your call center, BRM or web site, those addresses would be OK. There are also exceptions if you can prove that your lists are 99% accurate or that you have a "Legal Restriction" prohibiting you from updating the address without authorization.

If you are using a Presort service, they offer a service called Fast-Forward that can apply the DPBC and forwarding address while co-mingling your mail allowing you some presort savings. The drawback is that the information is applied after your mail piece has been created so the corrected information doesn’t directly update your records.

Is there a way for me to take advantage of Better Address Quality without big changes to our I.T. processes?
Yes Document Control Software, can capture your Print Image Files and manipulate them prior to printing. It is mind boggling to see all of the things DCS can be designed to do. Not only can DCS improve address quality but it can merge multiple print streams, change background overlays, add OMR marks for automation processing by a Folder Inserter, add the postage Indicia into the address block and can even include Mail Piece Verification to ensure that every piece makes it into the mailstream.

What are the consequences for not complying with Move Update?
The key thing to realize is that the penalty will be applied to the entire mailing, not just those addresses that fail Move Update. When you sign the 3602 Mailing statement acknowledges that … “who omits information requested on this form may be subject to criminal and/or civil penalties, including fines and imprisonment.” The calculations for failure to comply are a little confusing. It is based upon the percentage of your mail that exceeds the minimum 30%compliance threshold. This percentage is applied to the entire mailing at $.07 per piece.

For example: 5000 piece mailing with 500 COAs (change of address on file with the USPS NCOA system) only 20% (100) were up to date, leaving 400 (80%) un-corrected. In order to comply with Move Update no more than 30% of COAs (150) can have un-corrected addresses. Penalty rate is calculated by subtracting USPS threshold 30% from the 80% not corrected to arrive at percent of mailing subject to a penalty, in this case its 50%.

Apply 50% penalty rate to entire 5000 piece mailing to determine number of pieces subject to .07 penalty in this case 2500 or $175.00


What are the chances of getting caught?
It is getting easier all the time for the USPS to catch this as their focus is absolutely on reducing costs. UAA (Undeliverable as Addressed) and FOE (Forwarding Order has Expired) mail are the biggest areas they have identified to save money. The mail today is becoming “Intelligent” with mailer identification embedded in the IMB (intelligent Mail Barcode) and IBIP (Information Based Indicia Program) meter indicia (All Phase 6 meters) it won’t be hard to find or account for as computers will do the hard work.

So stay compliant with Move Update and your mailing performance will improve, just like a healthy body that eats right and exercises should. Hopefully this has diminished your fears and confusion regarding Move Update requirement, so eat your vegetables, they’re good for you!