What is a "Shipping Refund" and Why Do Carriers Keep It Secret?
Author
Josue Tello
Date Published
Did you know that FedEx and UPS likely owe you money right now?
It sounds too good to be true, but it is a built-in part of the service agreements you signed when you opened your account. It is called the Money Back Guarantee (MBG) or Guaranteed Service Refund (GSR).
The Promise
When you pay for shipping—especially premium services like Next Day Air or Priority—you are paying for a specific delivery time. The carrier promises: "We will get this package there by 10:30 AM."
The deal is simple: If the package is late—even by 60 seconds—the shipping charge should be free.
The Reality: The "Ask" Loophole
Here is the catch. While the refund is "guaranteed," it is not automatic.
Carriers do not voluntarily credit your account when they mess up. They rely on the fact that you are too busy to check every single tracking number. Billions of dollars in eligible refunds go unclaimed every year simply because shippers don't ask for them.
What Else is Refundable?
It isn't just late deliveries. You can often claim refunds for:
Duplicate Billing: Being charged twice for the same tracking number.
No Proof of Delivery: If the driver drops it but doesn't scan it properly.
Manifested but not Shipped: Labels you created but never used (voiding these is crucial).
Don't Leave Money on the Table
This isn't "found money"—it is your money. You paid for a service that wasn't performed. PigeonAI exists to ensure you understand exactly what you are owed.