If a Package Is Returned to Sender Do You Get a UPS Refund?

if a package is returned to sender do you get a refund ups

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No. If a package is returned to sender, UPS does not refund the original shipping charge. Under the UPS Terms and Conditions of Service, a refused or undeliverable package comes back at the shipper’s expense, the original charges still apply, and the return trip is billed as a new shipment. You may still get money back in a few narrow cases: a late guaranteed air delivery, a billing error, or a loss or damage claim.

If you’re the buyer rather than the shipper, the answer is different. Your refund for an order that bounced back comes from the merchant, not from UPS. Our general guide to whether you get a refund when a package is returned to sender covers buyers and other carriers.

Table of Contents

What Does UPS’s Policy Say About Returned Packages?

If a package is returned to sender, do you get a refund from UPS?

Section 37 of the UPS Tariff/Terms and Conditions of Service sets out the rule. Shipments refused by the recipient, or undeliverable for any reason, are returned to the shipper at the shipper’s expense. That expense includes forwarding costs, return transportation charges and all other applicable charges, duties and taxes. The return is calculated as a newly started shipment from the original delivery address back to the return address, including surcharges.

The same section says all original charges continue to apply as if the package had been delivered. Undeliverable international shipments also carry an undeliverable shipment surcharge, and the UPS Service Guarantee doesn’t apply to packages returned as undeliverable. Some older articles claim UPS returns refused packages “without additional charge”. That is not what the current U.S. terms say.

SituationOriginal shipping refunded?Return trip billed?
Recipient refuses the packageNoYes, to the shipper
Bad or incomplete address, cannot be deliveredNoYes, to the shipper
Not picked up from a UPS Access Point within 7 calendar daysNoYes, to the shipper
Shipper requests a Delivery Intercept returnNoYes, plus the intercept charge
UPS loses or damages the packageThrough a claim, up to the declared valueNot applicable
Guaranteed air service delivered lateTransportation charges, on requestNot applicable

When Can You Get Money Back from UPS?

There are three routes, and each has its own deadline.

  • Service Guarantee refund. UPS guarantees on-time delivery for its domestic air services: UPS Next Day Air Early, Next Day Air, Next Day Air Saver and 2nd Day Air A.M. It also guarantees its main Worldwide Express and Saver services. If UPS fails to attempt delivery on time, it will credit or refund the transportation charges to the payer, on request. Fuel and other surcharges are excluded. Packages that end up returned as undeliverable don’t qualify, and neither do shipments delayed because the recipient refused or was unavailable.
  • Invoice adjustment. UPS might bill the return using the wrong weight or service, or charge you twice. A request for an invoice adjustment or a duplicate-payment refund must reach UPS within 180 days of the invoice, or the dispute is waived.
  • Loss or damage claim. A package might come back damaged, or never come back at all. For domestic shipments, UPS must receive notice of the claim within 60 days of delivery, or of the scheduled delivery date if it was never delivered, and the claim must be filed within nine months. International claims must be filed within 60 days. UPS limits its liability to $100 unless a higher value was declared.

Our guide to UPS claims and support covers the claim forms. If you ship for a business, reconcile returns against your end-of-day shipping records before you dispute a charge. Our guide on how to reprint a UPS end-of-day report shows where to find them.

Why Do UPS Packages Get Returned to Sender?

UPS package marked return to sender after a failed delivery

Most returns come from causes the shipper can control:

  • Address problems: A missing apartment or suite number, a wrong ZIP Code or a business that has closed. A P.O. Box address is another cause, since UPS’s terms say it doesn’t deliver to P.O. Boxes and charges an address correction.
  • Refusal: The recipient refused the package, for example because the order was unexpected, the box arrived damaged, or they didn’t want to pay a C.O.D. amount or import duties.
  • Failed attempts: UPS couldn’t complete delivery after its attempts. Our guide to how many times UPS attempts delivery explains what happens after each one. For C.O.D. packages, the UPS terms set the limit at three delivery attempts.
  • Uncollected at an Access Point: UPS can treat a package that isn’t picked up from an Access Point within seven calendar days as undeliverable.
  • Customs or content problems: International shipments can be refused at customs when the paperwork is wrong. Our guide to the UPS declaration statement covers the invoice wording that customs expects.

Blind shipments, which hide the true shipper’s identity, need special care. The return address still has to be one where UPS can actually deliver the package, as explained in our guide to blind shipments with UPS.

How Do You Request a UPS Refund or Credit?

  1. Work out which route applies. A late guaranteed delivery is a Service Guarantee request, a wrong charge is an invoice adjustment, and a lost or damaged package is a claim.
  2. Gather the evidence. You’ll need the tracking number, the shipping receipt or invoice, the declared value, photos of the package and contents, and proof of the item’s value, such as a sales invoice.
  3. Submit it through the right channel. File claims through UPS’s online claims process. Request guarantee refunds and billing adjustments through your UPS account or billing center, or through the platform that sold you the label.
  4. Keep the packaging. UPS can refuse a damage claim if the original packaging isn’t available for inspection.
  5. Follow up. UPS acknowledges a claim within 30 days and pays, declines or offers a settlement within 120 days. If it needs longer, it sends a written status update.

If you bought the label through a shipping platform, contact that platform first, since it holds the UPS account the label was billed to. If a large share of your shipments come back, look at the cost of a UPS business account alongside the return charges. The same applies to printing labels at a UPS location: repeated returns make every label cost more.

How Do You Track a UPS Return to Sender?

Cardboard shipping box with a return label on a doorstep, returned to sender

A UPS return to sender usually keeps the original tracking number, so you can follow it on ups.com or in the UPS app. Statuses such as “Returning to Sender” show that the return has started. Gaps between scans are normal while the package moves back through UPS hubs. Our explainer on how UPS scans packages shows where those scans happen.

The return trip moves at ground speed, depending on the distance back to you. Our guide to how long UPS takes to deliver gives the typical transit times. For tracking questions about returns with other carriers, see whether you can track a return-to-sender package.

How Can You Prevent a UPS Return to Sender?

  • Confirm the full street address with the recipient, including the apartment or suite number, before you print. Add their phone number so the driver can reach them.
  • Use USPS for P.O. Box, APO and FPO addresses, since UPS doesn’t deliver to them.
  • Tell the recipient the package is coming and whether a signature, C.O.D. payment or import duties will be due.
  • Pack in new or near-new corrugated boxes and label them clearly. Our UPS shipping label guide explains where the label and return address go.
  • If you spot an address mistake after the package has shipped, you can ask UPS to change or intercept it. Expect a charge for this, and note that intercepted shipments lose the Service Guarantee.

Every return trip is billed at the rate you pay, so a lower base rate also lowers the cost of the occasional return. ParcelPath is free to use and gives up to 85% off UPS and up to 89% off USPS. You can compare live UPS and USPS rates before you ship. For more on running a shipping operation from home, see our delivery services overview and our list of the best shipping services and solutions.

Frequently Asked Questions

Does UPS charge to return a package to the sender?

Yes. Under Section 37 of the UPS Terms and Conditions of Service, refused and undeliverable packages are returned at the shipper’s expense, including return transportation and other applicable charges, duties and taxes. The return is billed as a new shipment from the delivery address back to the shipper, and the original charges still apply.

If a package is returned to sender, do you get a refund from UPS for the original label?

No. UPS treats the outbound trip as service it provided, so the original charges stay in place when a package is refused or undeliverable. Money back from UPS is limited to late guaranteed air deliveries, billing errors corrected through an invoice adjustment within 180 days, and loss or damage claims filed on time.

Does the UPS money-back guarantee cover returned packages?

No. The UPS Service Guarantee refunds transportation charges only when a guaranteed service, such as Next Day Air or 2nd Day Air A.M., misses its delivery commitment. The UPS terms state that the guarantee doesn’t apply to undeliverable shipments returned to the shipper, or to delays caused by a recipient who refuses or isn’t available.

How long do you have to file a UPS claim for a damaged return?

For domestic shipments, UPS must receive notice of a loss or damage claim within 60 days of delivery, or of the scheduled delivery date if the package was never delivered, and the claim must be filed within nine months. International claims must be filed within 60 days. Keep the original packaging, since UPS may inspect it.

Sources

Part of our UPS Labels and Supplies guide. Related: UPS Shipping Label.