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Understanding the Fine Print of FedEx & UPS Guaranteed Service Refunds

By Last updated on: June 27, 2023

FedEx & UPS Guaranteed Service refunds are part of a smart shippers toolbox. Shipping is an essential part of business operations for small and large companies. In fact, FedEx and UPS collectively ship billions of packages each year. Additionally, this number is rising as each day passes. Keeping this in mind, it’s no surprise that these shipping giants don’t offer easy-to-read and easy-to-discover details on their guaranteed service refunds.

UPS refers to these as GSR. FedEx refers to these as the money-back guarantee. After all, they’re in the business to make money, and when offering GSRs, they risk losing more than they know they could otherwise keep. Don’t let this reality blind your efforts, however, in capturing your GSRs when deserved.


Consider the below to help understand the fine print details of FedEx and UPS guaranteed service refunds.

Money-Back Guarantee… Yes or No?

For most services FedEx and UPS provide, there is a free, money-back guarantee. Additionally, it’s essential to recognize that among the fine-print details attached to these guarantees include if FedEx or UPS makes a delivery later than their time commitment. If this happens, the shipper will receive a credit for the shipping charges. 

The catch? Too often, this is not identified by the shipper, and thus, the refund is never received. In other words, it’s essential to understand that these late package refunds are only provided upon request. In other words, while FedEx and UPS offer money-back guarantees, they are not automatic. This is why the shipper must take the initiative in these efforts. Namely, the shipper must take action to capture these refunds. Shippers can confidently capture refunds by introducing an automated refund service into your shipping strategy, such as the one explained here. Refund Retriever allows businesses to ship without managing the fine print details of their deliveries themselves.

Like most things in life, there are exceptions to every rule. And this holds true for GSRs, as well. Among the exceptions for both FedEx and UPS include the following:

The fine print…

SmartPost, SurePost, or Mail Innovations

FedEx Ground Economy, UPS Surepost, and UPS Mail Innovations are shipping methods between FedEx or UPS and the US Postal Service. An example is if FedEx or UPS picks up your order from a warehouse and delivers it to your local post office. Subsequently, USPS continues with the shipment right to your doorstep. There is no guarantee on these services.

15-Day Time Limit to Claim Late Package Refunds Exceptions

Shippers have a time limit to claim a service guarantee failure. For FedEx, this is within 15 calendar days of the invoice date. For UPS, this is within 15 calendar days from the scheduled delivery date. These fine-print details are ones you don’t want to ignore. Thus, incorporating an automated refund service can help you monitor this. Explore more here.

External Factors Beyond FedEx and UPS Control

Weather delays, customs delays, and factors not in a carrier’s control will influence a shipper’s refund. While delays may occur, a GSR refund is not available.

Finally, when a refund is issued, it will show up as a credit on your FedEx or UPS invoice. Thus, this will reduce your future spending with each carrier, alleviating your shipping spend.

FedEx & UPS Service Refund Credits

FedEx credits will appear on the original invoice in the adjustment history. Credits will lower the amount owed on the invoice. If payment has been made, the refund will be issued in the same manner as paid.

UPS credits will appear on the next UPS invoice.

Get your FedEx & UPS Guaranteed Service Refunds

With an improved understanding of GSR and the confidence you need to take action in capturing your refunds when deserved. There is no excuse for businesses to shy away from losing money. Reduce your shipping spend and gain profit with the help of an automated refund service. In conclusion, this allows your business to strengthen its shipping strategy along the way. Click here to learn more about FedEx money-back refunds or UPS guaranteed service refunds.

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 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 or call (800) 441-8085 for more information.

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