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FEDEX REFUNDSUPS REFUNDS

FedEx & UPS Late Fees

By Last updated on: December 17, 2020

As with all vendors, FedEx and UPS want to be paid in a timely manner. Since 2003, there has been a 6% UPS late fee penalty. Now, there will be a FedEx late fee penalty that matches UPS.

When do FedEx late fees apply? 

Beginning January 2021, FedEx will begin charging a six percent (6%) late payment fee to non-paying customers. Particulars concerning the late fee will be found in the January 2021 FedEx Service Guide. The FedEx late fee penalty will be in the Fees and Additional Information part.

FedEx late fees

When do UPS late fee penalties apply? 

UPS sets terms for the late payment fee in the UPS Service Guide. Late payment fees apply when payment is not received within 14 days of the invoice due date. The UPS late payment fee will equal six percent of the total past due balance. This includes, without limitation, any previously assessed but unpaid late payment fees. Thus, you can get a late charge for non-payment of your late fees.

A late payment fee is assessed only one time on each invoice that is fourteen days past due. Each late payment fee will be due and payable within seven days following the invoice’s arrival reflecting the fee assessment. The late payment fee is in addition to any collection costs incurred by UPS in the final collection of charges.

How do I avoid late penalties? 

Pay on time. However, sometimes it is not possible. So other options does a delinquent company have? Contact your representative and be proactive. Ask them to waive the fees to prevent further costs or debt. UPS will sometimes issue goodwill credits for late penalty charges. Call up the UPS billing department to request a goodwill credit. This often works when you paid for the invoice soon after the late penalty arrives on a current invoice.

Ordinarily, customer service representatives can issue credits for amounts under $500 without supervisor authorization. UPS wants to keep clients satisfied and can be very understanding. It will be interesting to see if FedEx late fees are treated the same way.

Also, this can be a concern when a company negotiates a new carrier agreement. Work a variance into the terms of your new agreement. Ask for a reduction of that six-percent penalty or billing terms longer than 14 days. Everything in a carrier contract is negotiable. You need to know what to ask for, you can also have Refund Retriever help. Application of FedEx late fees will be something to watch.

UPS Prepayment Plans

In addition, UPS offers two prepayment plans. A customer may prepay an amount equal to four weeks’ average billing. This installment remains on account to satisfy one month’s expected charges. Learn more directly from UPS here. There is a weekly and monthly prepayment plan available in addition to four types of payment.

  • Electronic Funds Transfer (Debit EFT): automatic debit from your bank account.
  • Electronic Funds Transfer (Credit EFT): payment electronically and automatically is withdrawn from a bank account
  • Check: sent through the US mail
  • Payment Card: American Express, Discover Card, MasterCard, & VISA

53.3 Late Payment Fee

For the Monthly Prepayment Plan, the Weekly Prepayment Plan, the Special Payment Plan, the Credit Extension Plan, and the Weekly Payment Plan, a late pay­ment fee will be assessed if the Shipper’s payment is not received by UPS by the invoice due date. Except as otherwise stated below, the late payment fee will equal six percent (6%) of the total past due balance of the Shipper’s invoice (including without limitation any previously assessed but unpaid late payment fees).

From the UPS service guide

FedEx late fees and UPS late fees are issues for many small parcel shippers. Make sure your accounts receivable departments pay attention to these guidelines. Refund Retriever can also help, our reports and analytics can identify these charges on a weekly basis.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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