What You Need to Know About the Latest UPS Price Increases and How They Affect Your Business

1. Fuel Surcharge Increases

Starting March 10, 2025, UPS has implemented a 0.5% increase in fuel surcharges for U.S. Ground Domestic, UPS SurePost, and U.S. Domestic Air services. Since fuel surcharges are adjusted weekly based on the U.S. Energy Information Administration’s average diesel and jet fuel prices, the surcharge can fluctuate, putting pressure on shipping budgets.

2. Invoice Fees: The Cost of Paperwork

Effective March 31, 2025, UPS will charge a $5 fee for each printed invoice sent to shippers or payers. This is a significant change for businesses that still rely on physical paperwork. To avoid this cost, companies are encouraged to switch to electronic invoicing, which remains free.

3. Payment Fees: A New Charge for Traditional Methods

In addition to the invoice changes, UPS has increased payment processing fees. Starting March 31, payments made by check or wire transfer will now have a $25 fee per transaction, while Automated Clearing House (ACH) payments remain exempt. This shift is part of UPS' efforts to move customers toward more digital payment methods.

4. Late Payment Fees: A Steeper Penalty for Delays

Late payment fees are also increasing. Starting March 31, 2025, the penalty for overdue payments will rise from 8% to 9.9% of the past-due balance. This includes any previous late fees that may have accumulated, adding additional pressure on businesses to keep payments timely.

5. Payment Processing Fees: Coming in May

Starting May 19, 2025, UPS will replace its 2% credit charge surcharge with a 2% Payment Processing Fee. This fee will be applied to most invoices, not just shipping costs.

The Bigger Picture: How Shippers Should Respond

Companies should evaluate how these fee increases affect their bottom line and consider steps to mitigate the impact, such as consolidating shipments, optimizing package sizes, and switching to more efficient payment methods.

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