As with all vendors, FedEx and UPS want to be paid promptly. The current FedEx late fee is 8%, and the UPS late fee is 8%. However, UPS will increase the late payment fee to 9.8% and apply fees to check payments and paper invoices. Let’s dive into these additional shipping fees.
Estimated reading time: 4 minutes
FedEx Late Payment Fee – 2025: 8%
The invoice date begins the credit term cycle, and payment is due within 15 days from the invoice date. A late payment fee will be assessed if your payment is not received by FedEx by the invoice due date. The late payment fee will equal 8% of the total past-due balance of any invoice that is past due. Failure to keep your FedEx account current will result in your account being placed on cash-only status. This status may impair your ability to use our services, delay your shipments, and may result in the loss of any applicable discounts
FedEx 2025 Service Guide
When do FedEx late fees apply?
Beginning in January 2021, FedEx began charging non-paying customers a six percent (6%) late payment fee. The FedEx late fee penalty will be included in the Fees and Additional Information section.
UPS Late Payment Fee – 2025: 8% to 9.9%
The UPS late payment fee will equal six percent of the 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.
When do UPS late fee penalties apply?
UPS sets terms for late payment fees in the UPS Service Guide. Late payment fees apply when payment is not received within 14 days of the invoice due date.
A late payment fee is assessed only once on each invoice fourteen days past due. Each late payment fee is 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.
2025 UPS Payment Changes
Effective March 16, 2025
Paper Commercial Invoice Services Surcharge: A fee of $10.00 per shipment will be applied to the shipper when the commercial invoice is not provided by the shipper in digital form using UPS Paperless Invoice services before the processing of the commercial invoice by UPS
Effective March 31, 2025:
- Print Invoice Fee: A fee of $5.00 per invoice copy will apply for each printed copy of a UPS invoice sent to shippers or other payors.
- Check Fee and Wire Fee: Payments made by check or wire transfer on or after March 31, 2025, will be assessed a fee of $25.00 per payment. This fee will not apply to ACH payments.
Effective May 18, 2025:
- A Payment Processing Fee equal to 2% of all other invoice charges will be added to each invoice.
- The Credit Card Surcharge will no longer apply.
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 (8%) 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
How do I avoid late penalties?
Pay on time. However, sometimes it is not feasible. So, what other options does a delinquent company have? Contact your representative and be proactive. Ask them to waive the fees to control further costs or debt. UPS will sometimes issue goodwill credits for late penalty charges. Call the UPS billing department to request a goodwill credit. A UPS goodwill credit will often work when you pay for the invoice soon after the late penalty arrives on a current invoice.
Ordinarily, customer service representatives can issue credits for charges under $500 without supervisor authorization. UPS wants to keep clients satisfied and can be very understanding. It will be interesting to see if FedEx’s late fees are treated similarly.
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.
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 weekly.
