Stop Paying the 9.9% Late Invoice Fee
You already know FedEx and UPS rates are high.
But did you know there’s a hidden penalty quietly eating into your profits — one that could be adding 9.9% on top of every shipping dollar you spend?
Here’s the kicker: this isn’t for faster delivery, better service, or a VIP perk.
It’s simply a late payment fee.
That’s right — if you don’t pay your shipping invoice on time, FedEx and UPS tack on an extra 9.9% to everything on that bill:
Transportation costs
Fuel surcharges
Peak season fees
Additional handling charges
Why It Happens
Carriers set strict payment timelines, and if you miss them — even by a hair — they apply the penalty.
FedEx and UPS don’t factor in weekends or holidays as grace periods.
UPS invoices on a Saturday, which means the clock starts ticking before your office is even open.
This means that without a rock-solid payment process, you could be paying hundreds or thousands in unnecessary late fees each year.
How to Keep Your Money Where It Belongs
Audit Your Past Invoices
Go back 6–12 months and look for any “late payment” or “9.9% penalty” line items. You might be surprised at how often it appears.
Check Your Payment Terms
Make sure they align with your internal accounts payable schedule. If they don’t, negotiate or adjust your process.
Streamline Your Accounts Payable Process
Automate invoice approvals
Set payment reminders before the due date
Account for weekend or holiday invoice dates
Switch to ACH Transfers
Relying on mailed checks can slow things down and put you at risk for late charges. ACH payments move through the system quickly, keeping you on schedule and avoiding penalty fees. Fast, direct, and cost-efficient—ACH helps you protect your profits.
Talk to a Parcel Expert
An experienced consultant can help you find workarounds, negotiate terms, and uncover other hidden savings you may not even realize you’re missing.
Bottom Line
This isn’t about paying less for shipping — it’s about not paying for nothing.
By tightening up your payment process, you can stop letting carriers take an extra 9.9% from your bottom line.