GSR & NPOD: The Facts

by LJM Group

Guaranteed Service Refunds (GSR) and No Proof of Delivery (NPOD)

As you may know, UPS and FedEx both offer a GSR (Guaranteed Service Refund) for most classes of service. This includes UPS Ground, UPS Next Day Air, UPS 2nd Day Air, UPS 3 Day Select, and even UPS Freight.

Guaranteed Service Refund status is indicated by a note in the Shipment Progress section on the Tracking Detail page. Service refunds are available in select countries. Both Carriers also require a delivery scan to document the process.

If their service standard is not met (on-time delivery), or if the package is lost or does not contain a valid delivery scan, you are entitled to a refund.

  • A Lost Package is a package that does not have a Delivery Status on the tracking site.
  • You can only begin the “Lost” claims process if there is no Delivery Status and the package is in an “in transit” state.
  • If the package has a “Delivered” status, and the package was “damaged upon delivery,” you can claim for a GSR of a Damaged Package.

The UPS Process

Upon becoming aware of the lost or damaged packages, UPS (and FedEx) will find the package or provide reimbursement for the replacement or purchase cost, whichever is less. (Usually up to $100.00 plus the cost of shipping).

1. Report the Missing UPS Package

  • UPS requires the shipper to report any lost packages.
  • Wait 24 hours AFTER the delivery window.
  • Once the report is received, UPS will perform a package search.
  • Package searches can take up to 10 business days

2. UPS Authorizes the Claim

  • If the package is not located, a Damage/Loss claim letter will be sent to the shipper, via email, fax, or post.
  • If the package is found, UPS will not approve the claim and will route the package to the recipient. UPS will notify you when the package is delivered.

3. Document Review

  • UPS requires documents that determine the value of the contents of the package. This may include an invoice or purchase order, and proof of mailing. (Make sure you keep copies of your documents).
  • UPS will determine the potential value of the package contents and verify that the product falls within the guidelines of their terms for a GSR.
  • UPS will contact you if they refuse the claim.

4. UPS Pays the Claim

  • Once the claim has been approved, UPS will refund the shipper.
  • UPS will pay either the replacement cost or purchase cost, whichever is less.
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