Breaking Down the New 2% UPS Payment Processing Fee

Christine Basile

April 17, 2025

Content Summary

UPS introduced a new 2% payment processing fee effective May 19, 2025, replacing its former credit card surcharge and expanding the charge to most invoice amounts, not just credit card payments. This change is part of a broader set of billing updates, including fees for printed invoices, check or wire payments, and increased late payment penalties, which together can significantly impact a shipper’s cost structure. Shippers using digital ACH payments through the UPS Billing Center may avoid the 2% fee, though individual agreements may vary. Understanding and tracking these fee changes helps businesses minimize unexpected costs and adjust their logistics and payment strategies accordingly.

Effective May 19, 2025, UPS will implement a new Payment Processing Fee—equal to 2% of all invoice charges. This change also marks the official end of the short-lived Credit Card Surcharge, which is being retired in name, but not in effect.

This update is part of a broader wave of billing-related changes announced by UPS. While all of the updates tend to increase costs, the 2% processing fee may have the greatest impact on shippers’ bottom lines—especially those who assumed they were exempt.

Here’s what’s changing, what it means, and what you can do about it.

The Key Change: A 2% Fee—Now Broader in Scope

UPS is essentially replacing its credit card surcharge with a newly named Processing Fee. While it may appear like a reclassification, the real impact is in its broader application:

• The fee applies to more payment types, not just credit cards

• It may impact shippers who previously negotiated credit card surcharge waivers

• It’s being framed as a processing requirement, rather than a surcharge

If you’ve previously secured a waiver for the credit card surcharge, it’s worth confirming whether this new 2% processing fee applies to you. We recommend reaching out to your UPS rep— or contacting Lojistic—for clarity on your specific situation.

Payment Methods That Will Trigger the Fee

Based on direct confirmation from UPS representatives, here’s how payment methods are treated under this new policy:

• Subject to the 2% Processing Fee:

• Credit card payments (online, by phone, etc.)

  • Check payments
  • ACH payments made outside of the UPS Billing Center (treated as wire transfers)

• Not Subject to the Fee:

• ACH payments made through the UPS Billing Center portal. Note: ACH payments made through the UPS Billing Center appear to be exempt from the 2% fee, according to UPS's site. That said, some shippers have reported still being charged the fee, suggesting that UPS might make exceptions based on individual agreements. It’s worth double-checking your invoice or contacting your representative if something doesn’t look right.

What Else Is Changing

While the 2% processing fee is the headline, here’s a quick look at other invoice and billing changes UPS has announced in 2025, in addition to the annual GRI:

• March 10, 2025:
  • Changes to fuel surcharge rates for U.S. Ground Domestic and UPS Ground Saver®
• March 17, 2025:
  • $10 fee for commercial invoices not submitted via UPS Paperless® Invoice
• March 31, 2025:
  • $5 fee per printed invoice copy
  • $25 fee per payment made via check or wire
  • Late payment fee increase from 8% to 9.9%
• May 19, 2025:
  • 2% Payment Processing Fee applied to all invoice charges
  • Retirement of the Credit Card Surcharge

Regions That Were Exempt

This is more than just a fee swap. By rebranding the original credit card surcharge and expanding its scope, UPS may have opened the door to applying the 2% fee more broadly—potentially even in areas where credit card surcharges are restricted, such as Connecticut, Massachusetts, and Puerto Rico.

What Can Shippers Do?

Some companies may choose to simply absorb the fee. But others—especially those who had previously negotiated credit card surcharge waivers and are unsure how those agreements apply under the new fee structure—might want to explore their options, push back, or request new concessions in return.

The first step is knowing whether and how this change affects you. That’s where having visibility into your billing data and fee structures becomes essential.

How Lojistic Helps

At Lojistic, we help companies quickly identify how changes like this one impact their shipping costs. Our platform makes it easy to:

• See surcharges, fees, and invoice details across carriers
• Spot unexpected billing changes
• Track carrier performance and accountability
• Run side-by-side comparisons across time periods

For companies already using Lojistic’s +PAY service, we’re working closely behind the scenes to assess how these changes affect your billing—and to help you respond strategically.

If you’re unsure how this change affects your business, or you want help evaluating your options, contact our team.

Stay Updated

As UPS rolls out these changes, we’ll continue to update this post with any new information we receive—especially around how the new fee is being applied in cases involving previously negotiated waivers. Bookmark this page or check back soon for the latest updates.

Author

Christine Basile

Christine Basile brings over two decades of hands-on experience in shipping and supply chain operations, with a career spanning 3PL, shipper, and carrier-aligned organizations. She has held strategic leadership roles at Apple, Kenco Group, AutoZone, and RR Donnelley, where she negotiated and managed contracts totaling over $1.3 billion in annual shipping spend.

Her background in building scalable shipping strategies, leading RFPs, and implementing enterprise-wide cost control initiatives makes her a trusted advisor to shippers of all sizes navigating an increasingly complex logistics environment.

As Director of Rate Services at Lojistic, Christine applies her deep expertise to help clients reduce costs, streamline operations, and optimize performance across their shipping networks.