Understanding Third Party Billing and How to Avoid Unnecessary Charges
Curly, Moe and Larry. Red, white and blue. Chocolate, vanilla and strawberry. Some of the best things in life come in threes. But what about billing to a third party shipper? UPS has announced a new Third-Party Billing Service Surcharge, effective January 4, 2016. We’ve broken down what impact this could have for your business, plus tips on how you can possibly avoid this surcharge.
How much is this new surcharge?
The Third Party Billing surcharge will be 2.5% of the total charges of all packages that are billed to a third party.
Wait, what is third party billing?
Third party billing is a feature you can use if you need to bill someone for the shipment that is not yourself OR the receiver.
How do I avoid this surcharge?
Do NOT select the “Bill Third Party” option if you want to bill the receiver or sender. Oftentimes, customers mistakenly select the “Bill Third Party” option in Unishippers Express Manager, on ups.com or on a manual shipping document when they need to bill the receiver. UPS will charge the new surcharge, even if the sender or receiver address matches the third party account number that you provide. To avoid unnecessarily paying this new surcharge, always double check the information that you enter on a shipping document – if either the sender’s or receiver’s account number is who you are billing, select “Bill My Account” or “Bill Receiver” instead.
But, I actually really do need to bill a third party. So what about me?
If the third party that you are billing is someone that you bill to or ship to frequently, there are some customized billing options that Unishippers may be able to provide for you to help you avoid the additional surcharge. Please contact your Unishippers office for more information.
So don’t despair – keep your love of trios! Unishippers is here to help and keep your shipping costs in check in 2016 and beyond.