Late Payment Finance Charge Policy Q&A

Rates are established on the basis that freight bills will be paid within the agreed upon credit terms. However, over the past several years, the percentage of freight bills paid beyond these credit terms has increased. The late payment finance charge is intended to encourage adherence to credit terms.

The finance charge will be assessed after payment of a freight bill at an annual rate of 12% or 0.0329% per day for each day the freight bill was past due. The date a freight bill is due is calculated as invoice date plus credit terms. The days past due will be calculated as due date minus the date funds were received by Union Pacific.

The due date for freight bills is calculated from the date the freight bill/statement is issued. For customers using positive pay (invoiceless), the date of issue is assumed to be one day after the date the waybill was tendered.

Yes. A summary invoice for the total late payment finance charges for all freight bills paid outside of credit terms will be issued each month. Along with the summary, we will also include the line item detail for each freight bill paid beyond credit terms.

A late payment finance charge invoice will be issued by the 10th of the month. The invoice will cover all freight bills paid late during the prior month.

Yes. The decision by a customer to use a third party does not eliminate the requirement for the payment to be made within the credit terms. The customer will be responsible for any finance charges that accrue due to the failure of the third party to process payments within Union Pacific credit terms.

Yes. Regardless of payment method, all payments made beyond credit terms are subject to the late payment finance charge.

See our Claims and Disputes information for further details.

If the dispute results in a correction to the freight bill it will not be subject to the late payment finance charge. If the dispute does not result in a correction to the freight bill, it will be subject to the late payment finance charge. However, the time that the freight bill was in dispute will be excluded from the finance charge calculation.

Customers should contact Union Pacific's Accounting Department at the toll-free number shown on the bill.