Carrier Terms Intermediate

Service Guarantee

Also known as: Money-Back Guarantee, Delivery Guarantee, On-Time Guarantee

Definition

A service guarantee is a carrier’s commitment to deliver your package by a specified date and time. If the carrier fails to meet this commitment, you may be entitled to a refund of shipping charges.

Carriers with Service Guarantees

UPS

Guaranteed services:

  • UPS Next Day Air Early (8:00 AM)
  • UPS Next Day Air (10:30 AM/12:00 PM)
  • UPS Next Day Air Saver (End of day)
  • UPS 2nd Day Air
  • UPS 3 Day Select
  • UPS Ground (day-definite, not time-definite)

FedEx

Guaranteed services:

  • FedEx First Overnight (8:00 AM)
  • FedEx Priority Overnight (10:30 AM)
  • FedEx Standard Overnight (3:00 PM)
  • FedEx 2Day
  • FedEx Express Saver
  • FedEx Ground (day-definite)

USPS

Limited guarantees:

  • Priority Mail Express (next day by 6 PM or 2 days)
  • Other services: Not guaranteed

What’s Covered

Typically guaranteed:

  • Transit time to destination
  • Delivery by specified date/time
  • Full shipping cost refund

Claim conditions:

  • Must file within specified timeframe
  • Shipping address must be correct
  • Package must meet service requirements
  • Must have proof of late delivery

Guarantee Exclusions

Common exclusions:

  • Weather delays
  • Natural disasters
  • Customs delays (international)
  • Incorrect addresses
  • Recipient not available
  • Security delays
  • “Acts of God”

Service suspensions:

  • Peak season (sometimes suspended)
  • COVID-19 suspended guarantees
  • Extreme weather events
  • Holiday periods

Filing a Guarantee Claim

UPS

  1. Note late delivery from tracking
  2. File claim within 15 days
  3. Submit via UPS.com or call
  4. Receive credit to account

FedEx

  1. Document late delivery
  2. File within 15 days of invoice
  3. Call 1-800-463-3339 or use online form
  4. Receive credit or refund

USPS Priority Mail Express

  1. File within 30 days
  2. Go to local post office
  3. Complete claim form
  4. Receive postage refund

Guarantee Timeframes

Service Guarantee
Overnight Early AM By 8:00-8:30 AM
Overnight Priority By 10:30 AM
Overnight Standard By 3:00-4:30 PM
Overnight Saver By end of day
2-Day By end of day
3-Day By end of day
Ground Day-definite only

Note: Times vary by destination. Check carrier for specific commitment.

Tracking Guaranteed Delivery

What to monitor:

  • Committed delivery date/time
  • Actual delivery scan
  • Any exception notices
  • Service suspension announcements

Tools:

  • Carrier tracking pages
  • Third-party tracking tools
  • Shipping software alerts
  • Automated claim filing services

Maximizing Guarantee Value

Proactive Steps

  1. Verify guarantee applies to destination
  2. Confirm no service suspensions
  3. Document shipped date/time
  4. Track actively for delivery

When Late Delivery Occurs

  1. Screenshot tracking showing late delivery
  2. Note guaranteed vs. actual time
  3. File claim immediately
  4. Keep records for verification

Automated Claim Services

Third-party services:

  • Monitor all shipments automatically
  • File claims on your behalf
  • Recover refunds you’d miss
  • Typical fee: 25-50% of recovered amount

DIY approach:

  • Review tracking daily
  • File claims manually
  • Keep spreadsheet of claims
  • More work but keep 100%

Business Considerations

When to use guaranteed services:

  • Time-sensitive deliveries
  • Customer SLAs at stake
  • High-value orders
  • Promotional deadlines

Cost vs. guarantee:

  • Premium for guarantee
  • Factor in refund potential
  • Compare guaranteed vs. non-guaranteed
  • Value of certainty to customer
Ready to ship? Compare carriers side by side
Try Free