Chargebacks and Rebills on Your Parcel Spend

chargeback and rebills

What is the Difference Between a Chargeback and a Rebill?

A Chargeback and a Rebill are basically the same thing. UPS calls them "chargebacks" whereas FedEx calls them "rebills." Whatever you like to call them, they can cost you a lot of money, especially if you ship a lot of packages on other companies account numbers. 

A chargeback/rebill occurs when you are the shipper of record, and ship on someone else's account (Collect or Third Party), but then that company or person decides, for any reason, the dispute the charge. After they decline to pay the shipping cost, the carrier then charges you, the shipper of record, because they need to charge someone. Additionally, if the account you used is on credit hold with the carrier, they will also reverse the charges to the shipper of record.

The Result: you have been charged for a shipment that you had expected to pay nothing for. It is very easy for this type of cost to slip through the cracks, and they can really add up! These costs often come back to you weeks or even months after you shipped, so you're not expecting a charge. That can really affect your budget.

What Causes a Chargeback?

There are many reasons why you might receive a chargeback, including but not limited to: 

  • The receiving account disputes the charge / refuses payment.
  • The person that gave you the account could not be identified.
  • The account number used was incorrect or invalid.
  • The party responsible for paying the bill is on credit hold with the carrier.

If your customer is repeatedly charging back on their shipments, you are left to foot the bill every time! 

Sometimes, chargebacks are a result of a deeper-rooted issue, which is that your customer might be having cash flow problems.  You want to bring this issue to the attention of your accounting team so they can determine if you should be sending your orders to them anymore because if they're not paying the carrier then how are they going to pay you?

Again, chargebacks are easy to miss and if it is a reoccurring issue, your basically throwing money out the door! Stop wasting money on your parcel spend and take control of your data. If you ship a lot on other companies accounts, contact us at Parcel BI today and try our free demo to see how our tools work with your data!

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