Key Takeaways
- UPS offers a Service Guarantee with full shipping refunds for packages delayed by even 60 seconds, but you must file within 15 calendar days of the scheduled delivery date.
- Businesses miss out on $3 billion in unclaimed shipping refunds annually due to complex filing requirements, strict deadlines, and the time-consuming manual claims process.
- Not all UPS services qualify for refunds. Check if your service has a guarantee, verify you haven’t signed a waiver, and be aware of peak season exclusions and weather-related exceptions.
- Lost or damaged package claims have a 60-day filing window and require detailed documentation, including tracking numbers, proof of value, photos, and invoices.
- Automated refund recovery tools like LateShipment.com can increase claim success rates by continuously monitoring shipments, filing claims before deadlines, and handling the complex paperwork, saving time and recovering more money.
Shipping with UPS is usually boring in the best way. You print the label, pick it, pack it, and ship it; it moves, it shows up, and everyone forgets about it.
Until it doesn’t and is delivered later than its intended schedule.
According to LateShipment.com’s 2025 State of E-commerce Holiday Shipping Report, UPS’ Ground service experienced a 6.81% delay rate during January–October 2025, with delay rates of 7.62%, 7.21%, and 6.44% for the Next Day Air, 2 Day Air, and 3 Day Select services. With millions of shipments tracked and analyzed, it is evident that delays are a structural risk rather than a one-off anomaly.
But here’s the kicker: you might be entitled to a refund from UPS, and you might not even know it!
Businesses are missing out on a whopping $3 billion in shipping refunds every single year. That unclaimed cash is sitting right there with UPS, just waiting to be claimed.
However, the conditions, process, and everything around refunds make filing claims with carriers such as UPS easier said than done. But we’re here to help. This guide walks you through what UPS refunds are, what actually qualifies, and how to file a claim that has a real chance of getting approved.
Understanding the UPS Refund Policy
UPS offers a Service Guarantee that promises on-time delivery for many of its services, including UPS Ground, UPS Next Day Air, and UPS 2nd Day Air. If your package is late, even by 60 seconds, you’re eligible for a full refund of your shipping costs.
Here are a few things to remember about the UPS Refund Policy. Refunds may not be valid in these cases:
- Not all UPS services (e.g., UPS SurePost) are eligible for the Service Guarantee. Check if the shipping service you’ve opted for is eligible under the Service Guarantee.
- Your agreement with the carrier can prevent you from claiming credits. Make sure you haven’t signed a Service Guarantee waiver and given up your right to claim refunds
- The delivery issue happened outside of UPS’s control (weather-related delays, customs issues, etc.).
- The shipment is sent around the holidays when there are peak season exclusions (UPS temporarily turns off the Service Guarantee due to high shipping volume that strains their performance).
- For lost packages: Provide proof of shipment, item description, declared value or coverage information, and commercial invoices for international shipments. For damaged packages: Include photos of the damage and packaging details along with proof of value (receipt, invoice, order confirmation). Clear and complete documentation helps avoid delays in processing your refund claim. The more evidence you provide upfront, the faster UPS can make a decision.
Limitations
- Claim filing window: 15 calendar days from the scheduled delivery date for late deliveries, 60 days for domestic shipments, and 21 days for international shipments for lost and damaged claims.
- Not all services are covered (e.g., UPS SurePost)
- Peak season exclusions apply (typically October through mid-January)
- Service guarantee waivers may be in effect in your contract
- Only transportation charges are refunded (surcharges may not be included)
Common Exceptions to the UPS Service Guarantee
- Weather-related delays and natural disasters
- Customs clearance delays for international shipments
- Incorrect or incomplete address information
- Recipient unavailability or refused delivery
- Events beyond UPS’s control (strikes, civil unrest, government actions)
- Packages shipped from UPS Store locations (must file directly with the store)
- Additional handling or large package surcharge issues
How to Claim a UPS Refund
Ready to claim your refund? Here’s a step-by-step overview of how to file a UPS refund claim:
1. Gather Your Information
Before you start, make sure you have all the essential details handy, including UPS tracking information. This includes:
- Tracking Number
- Shipping Date
- Package Weight
- Package Contents
- Proof of Value
2. Initiate Your Claim
You have two options for starting your claim:
Online: Head over to the UPS website and log in to your account. If you don’t have an account, you can file as a guest. Navigate to the claims section and provide all the required information about your shipment.
Phone: Call UPS claims support at 1-800-PICK-UPS (1-800-742-5877) and select the option for refunds. Be prepared to provide the same information as you would online.
3. Claim Review and Resolution
Once you’ve submitted your claim, UPS will review it. This typically takes 8 to 10 business days. During this time, they may contact you for additional information or documentation. You can watch over the status of your claim online through your UPS account or by contacting their support team.
4. Receiving Your Refund
If your claim is approved, UPS will notify you. They may request payment documentation to process the refund. Once they have everything they need, you can expect to receive your refund within approximately 3 business days.
Why Manually Claiming Refunds Doesn't Cut It
Manually claiming refunds is great if you’re shipping less than 20 parcels a month. But if you’re someone with a scalable shipping volume, filing claims for hundreds and thousands of shipments is nearly impossible. Here’s why:
Challenges of Manual Refund Claims:
- Time-Intensive Process: Tracking each shipment, identifying delays, and filing individual claims can take hours per week for high-volume shippers
- Strict 15-Day Deadline: Missing the filing window means losing your refund—and with hundreds of shipments, it’s easy to let some slip through
- Complex Documentation: Each claim requires detailed tracking information, proof of shipment, and supporting documents. Multiply this by hundreds of packages
- Hidden Eligibility Issues: Service guarantee waivers, peak season exclusions, and exception clauses can disqualify claims; knowing which ones apply requires constant monitoring
- Manual Error Risk: One incorrect tracking number, wrong date, or missed detail can result in claim rejection
- Inefficient Resource Allocation: Your team’s time is better spent on core business activities rather than chasing refunds from carriers
How LateShipment.com Automates Your Refund Recovery
- Continuous Monitoring: Our system automatically tracks all your UPS shipments in real-time, identifying late deliveries, billing errors, and service failures across your entire shipping volume
- Automatic Claim Filing: Claims are filed instantly when eligible shipments are detected—no manual work required. We ensure every claim is submitted well before the 15-day deadline
- 50+ Service Failure Detection: Beyond late deliveries, we identify lost and damaged shipments and billing errors, including dimensional weight adjustments, residential surcharges, address correction fees, and more
- Comprehensive Documentation: All required documentation is gathered and submitted automatically—tracking numbers, proof of shipment, delivery records, and invoice details
- Smart Eligibility Screening: Our algorithms know when service guarantees are active, when peak season exclusions apply, and which claims have the highest success rates
- Direct Credit to Your Account: Approved refunds are credited directly back to your UPS account—typically within 3-5 business days of approval
- Transparent Reporting: Access real-time dashboards showing all filed claims, approval status, total refunds recovered, and shipping performance analytics
- Zero Upfront Cost: We only charge a percentage of successfully recovered refunds—if we don’t recover money, you don’t pay anything
Results You Can Expect
- Average 15-20% savings on total shipping costs
- 99% claim filing accuracy with no missed deadlines
- Typical recovery of $3,000-$50,000+ annually, depending on shipping volume
- Complete visibility into carrier performance and cost optimization opportunities
Frequently Asked Questions on UPS Refund Claims
What does UPS refund if my package is late?
Yes, if your UPS package is late, even by 60 seconds, you are eligible for a full refund under their Service Guarantee, provided your shipment meets the requirements.
How soon will I get my refund after UPS approves it?
Approved refunds typically post within 3 business days of approval. For account holders, the refund usually appears as a credit adjustment on your current or next UPS invoice rather than a direct payment to your original payment method.
Does UPS refund shipping costs for weather delays?
Generally no. Weather-related delays and other events outside of UPS’s control are common exclusions under the Service Guarantee. However, exceptions may exist depending on how UPS classifies the specific disruption. It’s always worth filing a claim to see if the weather exception applies to your shipment, but weather delays are typically a significant hurdle to refund approval.
Why was my UPS refund claim denied even though tracking shows it was late?
Common reasons for claim denial include:
- The package was not actually late under the officially committed delivery time for that specific service level
- A service guarantee waiver or suspension was in effect (check your contract)
- Peak season exclusion applied (typically early October through mid-January)
- The delay was attributed to weather, customs clearance, incorrect address, or recipient unavailability
Do I need receipts for a lost package claim?
Yes, for a smooth claim process. UPS requires proof of value—typically a receipt, invoice, order confirmation, or sales invoice. The claim payout is tied to the declared value at the time of shipping and UPS’s coverage rules. Without proper documentation, your claim may be denied, or you may receive only a partial refund.
Can I get a refund for billing errors like incorrect dimensional weight pricing or duplicate charges?
Yes, billing error refunds are available for common invoice mistakes, including:
- Duplicate charges (same package billed twice)
- Address correction fees were applied incorrectly
- Residential surcharge errors (commercial address billed as residential)
- Fuel surcharge misapplications
- Saturday delivery fees were charged incorrectly
- Incorrect dimensional weight pricing due to inaccurate package measurements or rounding errors
You can contest these charges through the UPS claims process with supporting documentation such as shipping invoices, proof of correct dimensions/weight, and delivery records.
Should my business automate UPS refund claims?
If you ship frequently (more than 20 packages per month), manage multiple shipping accounts, or consistently miss filing deadlines, automation is highly valuable. Automated tools like LateShipment.com detect late deliveries and billing errors across all shipments, file claims before deadlines expire, verify that credits actually post to your account, and provide consistent recovery without manual effort. The real value is eliminating missed opportunities and freeing up your team’s time.
