Many customers pay their carrier invoices very quickly. The surprising fact is, this may end up costing more money in the long run. How is this possible? Read on …
FedEx is a bit special in how they view payments to their invoices and this has side-effects in the disputing process. If you read carefully in their terms, they see you paying your invoice as a way of finalizing your agreement to their services rendered. This means once an invoice is paid, FedEx is less likely to issue refunds for disputed packages. The results vary by situation, but we do see a decline in refunds issued by FedEx for packages from paid invoices compared with packages for new, unpaid invoices. Some packages may legitimately deserve refunds, but FedEx sees the paid invoice as a stamp of approval on the customer’s part.
Does FedEx ever issue refunds for packages on paid invoices? Sure they do, all the time … just a little less often than for packages on new, unpaid invoices.
We would never advocate paying your invoice late — late fees would increase your costs, and it’s wise to avoid paying at the last minute. We’re simply saying is there may be a hidden cost in paying your invoice “too early”.
Our suggestion: pay the invoice 3-5 business days before it’s due. This allows for plenty of time for disputing, and ensures you should avoid late fees. Of course we will continue disputing whether an invoice is paid or not.