The short answer
The right late delivery refund service files every eligible FedEx and UPS claim inside the carrier's 15 day window, charges you only from refunds it actually recovers, sets up in minutes without changing how you ship, and shows you proof that each credit landed on your account. For mid market shippers, it also pays to choose a partner that can lower your rates, not just recover refunds.
Why late delivery refunds go unclaimed
FedEx and UPS offer money back guarantees on many of their services. If a covered package arrives after its committed delivery time, even by a minute, the shipper can request a refund of the transportation charges.
The catch is that the carriers don't issue these refunds on their own. Someone has to compare every delivery against its commitment, check for exceptions, and file the claim before the deadline. For UPS, that's 15 calendar days from the scheduled delivery date. For FedEx invoiced shipments, it's 15 calendar days from the invoice date.
At a few hundred packages a week, nobody on your team has time for that. So the refunds quietly expire, and you keep paying full price for service you didn't get.
What to look for in a late delivery refund service
1. How the fee works
Most refund services are paid from the refunds they recover, so you never pay out of pocket. Ask exactly what the percentage is, whether it changes with your shipping volume, and whether there are setup, monthly or cancellation fees on top.
2. Contract terms
Refund recovery shouldn't lock you in. Look for a service you can stop at any time.
3. Setup time and what access is needed
Good services connect to your existing FedEx and UPS accounts and start working without changes to your warehouse, labels or shipping software. Ask how long setup takes and what access you need to grant.
4. Carrier and service coverage
Not every service level carries a guarantee, and carriers adjust their guarantees over time. Confirm which FedEx and UPS services the provider checks, and whether it covers both domestic and international shipments.
5. Speed
With a 15 day window, timing matters. Ask how quickly late packages are identified and claims are filed after each invoice.
6. Proof that credits landed
A filed claim isn't money in your account. The service should confirm that each refund was actually credited by the carrier and show it to you package by package.
7. Reporting
You should be able to see what was late, what was refunded, and what was ineligible and why. Clear reporting also shows you which lanes and services fail most often.
8. What else they can save you
Refunds typically recover a small slice of your shipping spend. The bigger savings usually come from your carrier contract itself: discounts, surcharges and minimums. A partner that handles both can do far more for your bottom line.
The three types of providers you'll find
Refund focused tools. Software built mainly to find late packages and file claims. Fast and hands off, but usually stops at refunds.
Post purchase platforms. Tools that bundle refunds with order tracking, returns and delivery notifications. A good fit if you also want to manage the customer experience after the sale, but you may pay for features you don't need.
Full service shipping cost partners. Firms that pair automated refund recovery with carrier rate negotiation and expert led invoice review. The best fit for mid market shippers who want to lower total shipping costs, not just recover refunds.
Questions to ask before you sign up
- What percentage do you take, and is it the same at every volume?
- Are there setup, monthly or cancellation fees?
- Is there a contract for the refund service?
- How long does setup take, and do I need to change anything about how I ship?
- Which FedEx and UPS services do you check?
- How fast do you file after each invoice?
- How do I see which refunds were actually credited?
- Can you also help me lower my FedEx and UPS rates?
How ShipPlug handles late delivery refunds
ShipPlug automatically finds every late FedEx and UPS delivery on your invoices and files the refund claim for you, inside the carrier's window. Packages that arrive even one minute late qualify, on both domestic and international shipments.
- Setup takes under 3 minutes. Connect your FedEx or UPS account and ShipPlug handles the rest.
- No contracts on refunds. Stop anytime.
- No upfront cost. We only get paid from the refunds we recover.
- No change to how you ship. Keep your carriers, your software and your process.
ShipPlug also helps businesses lock in lower FedEx and UPS rates through carrier contract negotiation, with clients saving an average of 30% on their rates. Our team brings more than 50 years of combined carrier experience to every negotiation.
Frequently asked questions
Do FedEx and UPS refund late deliveries automatically?
No. Both carriers require the shipper to request the refund. If no one files the claim within the deadline, the refund is lost.
How long do I have to claim a late delivery refund?
For UPS, 15 calendar days from the scheduled delivery date. For FedEx invoiced shipments, 15 calendar days from the invoice date. FedEx shipments paid by credit card or in advance use the ship date instead.
What does the refund cover?
The refund covers the transportation charges for the late package on a guaranteed service. Some fees and surcharges may not be included, depending on the carrier's terms.
Does every FedEx and UPS service have a money back guarantee?
No. Coverage depends on the service level and destination, and carriers can change or suspend guarantees. A good refund service checks only shipments that are currently eligible.
Is a refund service worth it for a mid market shipper?
If you ship hundreds of packages a week, late deliveries add up quickly, and filing claims by hand inside a 15 day window isn't realistic. A service paid only from recovered refunds costs you nothing when there's nothing to recover.
Start recovering your late delivery refunds
ShipPlug finds and files every eligible FedEx and UPS refund automatically, with no contract and no upfront cost. Book a demo to see how much your late deliveries are worth.
