How to Get USPS Discounted Postage Rates and Stay Compliant
Streamworks Blog

For businesses and mailing companies that use direct mail campaigns, getting discounted postage rates is important. This helps control costs for First-Class Mail® and Marketing Mail™. Mailing companies help businesses use USPS incentives and address update solutions. This helps them improve their campaigns and keep mailing lists accurate. To enjoy these savings, the USPS® asks mailers to update their mailing lists. This must be done within 95 days before the mailing date. There are three types of USPS-approved move update methods—NCOALink, Address Change Service (ACS), and Ancillary Service Endorsements (ASE)—that mailers must use to stay compliant and qualify for discounted postage rates. This step ensures that mail is directed to accurate, up-to-date addresses, reducing waste and improving delivery efficiency.
Introduction to USPS Services
The United States Postal Service (USPS) provides a range of mailing services. These services help businesses connect with their customers easily and affordably. Whether you’re sending First-Class Mail for important documents or leveraging USPS Marketing Mail to reach a broader audience, the Postal Service provides flexible options to support your marketing goals. Each year, USPS introduces new promotions and incentives designed to help businesses maximize the impact of their mailings. For example, the 2025 Promotions Calendar features innovative programs like the Tactile, Sensory, & Interactive Mailpiece Engagement Promotion and the Integrated Technology Promotion. These initiatives encourage mailers to incorporate advanced technology—such as NFC technology, Video in Print (ViP), Augmented Reality (AR), and Mobile Shopping—into their mailpieces, making them more interactive and engaging for recipients. In addition to leveraging technology and promotions, businesses must ensure that all required USPS forms are properly filled out and attached to their mailings to meet preparation and processing requirements.
By taking advantage of these USPS promotions, businesses can not only qualify for discounted postage rates but also enhance the customer experience and increase their return on investment. Whether you’re looking to boost response rates, support your brand, or simply ensure your mail is delivered efficiently, USPS services and technology-driven promotions offer valuable tools to help your business succeed in today’s competitive marketplace.
Mail Classification and Preparation
Proper mail classification and preparation are essential steps for any business aiming to stay USPS compliant and qualify for discounted postage rates. The way you classify your mail—whether it's First-Class Mail, USPS Marketing Mail, or Priority Mail—determines the services, delivery speed, and pricing available for your campaign. Each mail class has specific requirements for addressing, barcoding, and sorting, which must be met to take advantage of automation discounts and ensure timely delivery.
To prepare your mailpieces for maximum efficiency, it's important to use accurate address information, apply the correct Intelligent Mail barcode, and follow USPS guidelines for sorting and bundling. Automation-friendly mailpieces not only reduce processing costs but also improve delivery performance and tracking capabilities. By investing in address hygiene and leveraging USPS-approved technologies, businesses can streamline their mailing process, minimize undeliverable mail, and maintain eligibility for valuable postage discounts.
Staying up to date with the latest USPS standards and utilizing available resources—such as the USPS Promotion Guidebook and online support—will help your business maintain compliance, reduce costs, and achieve better results from every mailing campaign.
Post Office Requirements and Guidelines
To maintain USPS compliance and qualify for discounted postage rates, mailers must adhere to specific requirements and guidelines set by the Postal Service. This includes using approved move update methods, such as NCOA, ACS, and Ancillary Service Endorsements like Address Service Requested and Change Service Requested. Mailing lists must be processed on a regular basis to ensure that address information is current and accurate, and mailers are responsible for updating their records with the latest data provided by the USPS.
The USPS offers a variety of resources to help mailers meet these requirements, including the PostalPro website and the Guide to Move Update. These tools provide detailed instructions on processing, endorsement usage, and compliance standards. By following these guidelines, mailers can ensure that their mail pieces are delivered efficiently, avoid penalties for non-compliance, and maintain eligibility for valuable postage discounts. Staying up to date with USPS requirements is essential for any business that relies on direct mail to reach its customers.
Discounted Postage Rates and Benefits
Mailers who implement move update methods like NCOA and ACS not only stay compliant with USPS regulations but also unlock significant benefits, including access to discounted postage rates for First-Class Mail and USPS Marketing Mail. By maintaining accurate address information and reducing undeliverable mail, businesses can lower their mailing costs and improve the return on investment for their direct mail campaigns.
In addition to cost savings, mailers may qualify for special USPS incentives and promotions, such as the Earned Value Promotion and the Color Transpromo Promotion, which reward innovative and effective mailing practices. Resources like the Mobile Shopping Promotion Guidebook and the Informed Delivery Promotion Guidebook provide further opportunities to enhance customer engagement and maximize the impact of each mailing. Ultimately, using move update services helps mailers deliver more accurate, targeted, and effective marketing messages—benefiting both businesses and their customers.
The USPS® provides three approved methods for updating mailing lists. Here’s an overview of each:
1. National Change of Address (NCOA®)
The National Change of Address (NCOA®) system is a vital resource provided by the United States Postal Service (USPS) to help businesses and mailers keep their address records up to date. This comprehensive database contains approximately 160 million permanent change-of-address records, reflecting updates filed by individuals, families, and businesses across the country. By regularly processing mailing lists through the NCOA system, mailers can match their address information against the latest USPS records, ensuring that mail pieces are delivered to the correct address—even when recipients have moved.
Using NCOA is a cost-effective means of reducing undeliverable mail and the expenses associated with returned or misdirected mailings. The database is updated on a regular basis, so mailers can rely on the most current address information available. This not only helps businesses maintain compliance with USPS regulations but also improves the efficiency and effectiveness of their direct mail campaigns. By leveraging the NCOA service, mailers can be confident that their mail is reaching its intended recipients, minimizing waste and maximizing the impact of every mailing.
2. Ancillary Service Endorsements
Ancillary service endorsements are printed instructions located near the address block on mail pieces. These endorsements direct how undeliverable mail should be handled, allowing mailers to receive forwarding and address correction services from USPS®.
The available endorsement lines include:
- Address Service Requested: Forwarding and notification of the new address; return to sender when undeliverable.
- Return Service Requested: No forwarding; returned with a notification of the new address.
- Change Service Requested: No forwarding or return; USPS® Form 3547 is sent with the new address information.
- Forwarding Service Requested: Forwarding to the new address; returned to sender if undeliverable.
Note: Some of these services may incur additional fees. Choose the endorsement that best fits your mailing strategy and budget.
3. Address Change Service (ACS™)
The Address Change Service (ACS™) provides electronic notifications of address changes as mail is processed. To use ACS™, mailers must register with USPS® and obtain a unique identification code printed on all ACS™ mailpieces to track and manage address updates.
There are three ACS™ types:
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Traditional ACS™: Requires an ancillary service endorsement and an alpha-participant code on each mailpiece.
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OneCode ACS™: Uses the Intelligent Mail Barcode (IMb™) with an ancillary service endorsement printed on the mailpiece.
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Full-Service ACS™: Offers basic and advanced options, leveraging IMb™ technology for enhanced tracking and reporting.
Compliance Is Key
Updating your mailing file and the original database is vital for any method you choose. This ensures ongoing compliance and prevents additional postage fees due to outdated information. If your mail is addressed to “Current Resident,” “Or Current Resident,” “Current Occupant,” or similar designations, these pieces are exempt from the address update requirement.
Non-compliance risks higher postage fees, leading to inefficient campaigns and wasted resources. By adhering to USPS® requirements and utilizing tools like NCOA®, ancillary service endorsements, or ACS™, you can maintain mailing accuracy, reduce costs, and maximize the effectiveness of your campaigns.
Ready to Optimize Your Mailing Lists?
Streamworks offers a comprehensive Data Hygiene Package to ensure your mailing lists are accurate, deliverable, and compliant with USPS® standards.
Our services include:
- CASS™: Updates addresses with ZIP+4 and delivery point codes, enhancing delivery accuracy.
- LACSLink™: Matches and updates addresses that have been converted, modified, or changed due to USPS® adjustments.
- SuiteLink®: Appends secondary (suite) information to business addresses, ensuring completeness.
- Delivery Point Validation™: Verifies that an address is deliverable, confirming that it can successfully deliver mail. This process is the final step in CASS™ certification.
- NCOALink®: Accesses the NCOA® database containing moves within the past 18-48 months to identify and update address changes.
By leveraging these tools, our Hygiene Package ensures that your mailing lists meet USPS® requirements while maximizing deliverability and reducing costs.
Contact us today to learn more and get started!