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The Ins and Outs of Ancillary Service Endorsements
Spring 2005

   The US Census Bureau estimates that up to 20 percent of Americans move every year. That means that up to a fifth of your mailing list could become obsolete every year. A good way to keep up with customers or help clean your database is to use the Postal Service's Ancillary Service Endorsements.

   The United States Postal Service offers the same mail forwarding services automatically received on first class mail for bulk mail. However, there are a number of options when it comes to Ancillary Service Endorsements. It is important to understand the different costs and services associated with each endorsement.

   According to the USPS, an Ancillary Service Endorsement consists of one keyword: "Address", "Return", "Change" or "Forwarding" followed by the two words "Service Requested". The endorsements are the same for all classes of mail, but the treatment and cost differ by mail class. It is important to know the difference between each of these endorsements to ensure the service is correct for your goals.

   Address Service Requested. This endorsement forwards mail to a new address for the first year at no charge for first-class and standard mail. From 13 to 18 months after a change of address, mail is returned to sender with new address attached. There is no charge for this service for first-class mail, but there is a weighted fee charge for standard mail. Then, after 18 months the mail piece is returned to sender with reason for nondelivery. Again, there is no charge for first-class mail but a weighted fee charge is applied to standard mail.

   Return Service Requested. This endorsement does not forward mail. Instead it returns all undeliverable mail to the sender with new address notification or the reason for nondelivery attached. This can be helpful if a list includes a number of incomplete addresses that may be correct, but not complete enough to standardize for postal discounts. This endorsement is free of charge for first-class mail. Standard mail is returned to sender with the appropriate single-piece, first-class mail rate.

   Change Service Requested. With this endorsement, mail pieces are not actually returned to the sender. Instead, mailers receive electronic notices of new address information or the reason for nondelivery. There is a $.20 charge for each electronic notice regardless of mail class. 		Manual notices are available for standard mail and package services for $.70 each. Manual notices are not available for first-class mail. Change Service requested is helpful for mailers with old lists who can't or don't want to deal with the influx of returned mail they are sure to receive. However, at $200 per thousand, National Change of Address (NCOA) processing may be faster, cheaper and more accurate.

   Forwarding Service Requested. This endorsement is similar to "Address Service Requested", however new address notification is only provided with returns. The mailer will see virtually no difference in the two endorsements because the main difference is on the receiving end. With "Forwarding Service Requested", mail pieces are forwarded for the first 12 months at no charge for first-class and standard mail. After a year and up to 18 months after a change of address, mail is returned to sender with new address information. This comes at no charge for first-class mail, but standard mail is charged a weighted fee. Then, after 18 months, mail is returned with reason for nondelivery. Free of charge for first-class mail; weighted fee charge for standard mail.

   Clearly discuss your goals with your mailer before using an Ancillary Service Endorsement to make sure you use the right endorsement for the right class of mail. If it's important to physically receive undeliverable mail, steer clear of "Change Service Requested". Likewise, don't use "Return Service Requested" if you want mail forwarded to new addresses. "Address Service Requested" is provided free of charge for all first-class mail, but standard mail incurs a weighted charge at times. If you are expecting a lot of returned mail or are mailing heavy pieces, it may be more cost effective pay more postage upfront than to incur more charges later.

   The USPS has strict regulations for proper formatting and placement of service requests. Talk to your mailer before utilizing these services. If the endorsement cannot be seen or understood, you might not receive the service requested.