UPS has rolled out a sweeping set of new fees and surcharges that will significantly impact parcel shippers across the board. These changes are not ideal—and the structure of the updates makes it nearly impossible to avoid without renegotiating your contract or mitigating impacts with strategic changes.
If you’re feeling overwhelmed, you’re not alone.These changes are hitting every shipper hard—but they don’t have to catch you off guard. With the right visibility and support, you can take back control.
New fees taking effect in 2025
- 2% payment processing fee: Effective May 19, 2025, a 2% fee will be added to most invoice charges. This applies to shipping and accessorial fees and replaces the former credit card surcharge.
- $25 check/wire payment fee: Beginning March 31, 2025, each check or wire transfer payment will incur a $25 fee. (ACH payments are exempt.)
- Increased late payment fee: Late fees will jump from 8% to 9.9% of the total past-due balance, including any existing late fees.
- General rate increase (GRI): A 5.9% average rate increase will apply across services, effective immediately.
- Accessorial increases: Expect higher charges on key services. For example:
- Daily on-route pickup: $9.90 → $10.50
- Saturday on-call stop: $6.00 → $6.50
- Fuel surcharge changes: Adjustments to fuel-based surcharges for UPS Ground and UPS Ground Saver® began March 24, 2025. These will fluctuate weekly with national fuel prices.
- New paper invoice surcharge: A new fee now applies for shipments requiring a paper commercial invoice.
What this means for you
UPS contract holders should review their Service Guide and Billing Terms, as some negotiated agreements may delay or exempt certain fees, though most standard agreements will see these changes as described
These fees can stack up fast—especially if your freight audit provider isn’t helping you modernize your parcel spend management.
But that’s the point: UPS is pushing shippers to digitize.
These new fees aren’t just about revenue for UPS. They’re signaling a shift: manual payments, paper invoices, and fragmented systems are no longer acceptable—and they’re charging you for the friction.
The only way to stay ahead is through data visibility paired with strategic operational guidance and negotiation readiness. That’s where loop customers have the edge.
How Loop can help
Our platform is built on data excellence, with fully digitized workflows, automated audits, and line-item-level visibility that makes these changes easy to track, understand, and address.
With Loop, you’re not scrambling to catch up. You’re already operating at the level UPS is demanding.
- No paper, no surprises: Loop ingests documents in any format and digitizes them automatically—eliminating the need for manual payments or paper invoices.
- Full visibility, down to the line item: We surface every fee—new or old—so nothing gets missed or misbilled.
- Predictive impact assessments: We analyze your historical data to show how the new fees will affect your business—and provide actionable recommendations.
- Always audit-ready: Loop doesn’t just track charges—we help you challenge them confidently and prevent repeat issues.
This is your opportunity to get proactive—not reactive.
Want to see the impact on your parcel spend?
We’ll show you exactly what the new fees mean for your business. Get a free impact snapshot based on 90 days of your historical spend.
