United Parcel Service (UPS) announced at the end of 2024 several changes to its billing fees and payment processing protocols to improve cost management and streamline operations. The updates were announced via email to clarify and seek comments from customers. The new fees range from a $5 upfront charge per printed invoice to a 2% processing fee on the cheapest shipping costs, and the labor fees are regularly calculated by shields services.
The issues will affect the cost of service, particularly for shipments with a high volume, such as those involving 1 million packages per day. As a result, shippers are now encouraged to switch to digital payment methods due to the necessity of securing their accrued credits. UPS has also implemented a system where February is treated the same as November when it comes to billing. This will make calculations easier.
The most significant changes include increases in payment fees. Starting on March 31, 2025, shippers charged a $5 fee per printed invoice copy. For those wanting to avoid it, businesses can opt for electronic payment methods that are entirely free, eliminating the need for a fee. This change is expected to stabilize from March 31 onward. In addition, shippers are now charged a $25 fee per transaction every month for payment by check or wire transfer. ACH payments will remain fully free in the U.S., regardless of the volume of the transaction.
Under the announcement, on May 19, 2025, a new fee of 2% will be added to the cost of each invoice charge related to package delivery, excluding shipping costs. This change is aimed at increasing the profit on more expensive shipping methods, such as U.S.运export and U.S. Ground Domestic flights. Additionally, it will apply to U.S. Domestic Air flights, with the way the processing fee is calculated being the lowest. This fee will have varying percentages based on the Due Date, with the highest percentages varying per week.
Over the next 18 months, the drużanan have also updated the gas fees. The first wave of changes is expected to come after March 10, 2025, with a new charge of 0.5% applied to the gas costs associated with U.S. ground flights, U.S.运export, and U.S. Domestic Air. This is a key measure UPS is taking to offset rising energy costs. While addressing these fee increases, shippers need to be prepared to calculate their accrued credits after March 10. This approach ensures companies can continue to comply with energy policies without bearing the additional costs.
The announced changes in UPS signaling to shippers are significant and will impact their billing procedures for the coming months. Implementing these fees requires a strategic approach, with shippers potentially considering switching to digital payment methods to avoid the extra expense. The implementation of the 2% processing fee on invoice charges will require careful planning to reduce drag on both their profit margins and their overall billing efforts.
In conclusion, these fee changes by UPS aim to stabilize the business environment and provide clarity on cost management. Shippers are encouraged to adapt and align their operations with these updated standards to ensure smooth progress.
