Chargebacks for Consignee Billing Shipments

Annual rate increases on accessorial charges from FedEx and UPS come as no surprise — but that does not make them any easier to comprehend. On trend with the last few years, both carriers continue to impose their unpredictable pricing policies upon their customers, the small parcel shipper.

Defined

The UPS Consignee Billing Program is a contractual offering that applies to shipment origins and destinations only within the United States and Puerto Rico. Service to and from Canada and the United States, including Puerto Rico, is also available for Ground and Express Services.

A consignee is a UPS customer who has agreed to pay your shipping charges. This payment method allows you to bill the charges for a specified shipment to a designated consignee.

The concept behind this policy is as follows:

 When a shipper ships a package to an unauthorized consignee, and; in the event of non-payment by the consignee or third party — the original shipper will be billed a refusal fee per package in addition to the original shipping charges. This refusal fee will be charged accordingly for a missing or invalid account number for the bill-to-party, or when the account number is for a receiver or third party who fails to pay the shipping charges, or when the package is shipped to an unauthorized consignee.

This fee is $15.90 as of 2018, only expected to upsurge every year.

Take Charge of Your Charge-backs

Having a solid grasp of your shipping logistics will allow you to identify unexpected charges from your carrier, ultimately providing a better framework to prevent them altogether.

LJM Group offers two specialized reports tailored to help you detect these charges with ease. Our Charge-Back Listing and Charge-Back Summary provide detailed information about packages that were shipped by you and were intended to be billed to the receiver or third party. Remember, if the payer (consignee) refused charges, or an invalid or suspended account number was given, UPS will rebill your account.

Contact LJM Group today for the parcel intelligence you need to take charge of your charge-backs.