Understanding Payment Terms in LTL Select
This guide defines the available payment terms in the "Book Shipment" workflow and clarifies the functional difference between each option.
I. Outbound Payment Terms For Shipper Account Type:
Payment Term | Who Pays the Freight Charges? | How Rates Display in LTL Select | Key Restriction / Note |
Prepaid | The Shipper (Your account) is responsible. | Rates are visible and selectable on the Rates page. | This is the standard payment method. |
Collect | The Consignee (Receiver) is responsible. | Rates are hidden; only the "Book Now" option is shown. | Available for all carriers. |
Collect - Section 7 Signed | The Consignee (Receiver) is responsible. | Rates are hidden; only the "Book Now" option is shown. | Crucial: Relieves the shipper of liability if the consignee fails to pay. Subject to an additional carrier fee. Available for all carriers. |
Third Party | A designated Third Party (neither shipper nor receiver) is responsible. | Rates are hidden; only the "Book Now" option is shown. | NOTE: This option is only available for FedEx accounts. You will be prompted to enter the third-party information in the Finalize step 6. |
II. Inbound Payment Terms For Shipper Account Type:
When booking an Inbound shipment, you are acting as the Consignee (Receiver). This changes the way rates are displayed:
You WILL see rates: Because you are the responsible party for the charges (Collect or Collect - Section 7 Signed), the system allows you to view and select the specific carrier rates on the Rates page.
Fees Apply: "Collect - Section 7 Signed" is also subject to an additional carrier fee on Inbound shipments.
This provides you with full visibility into the costs you are agreeing to pay.
NOTE: Third Party Account Type (Bill To Account) is always bill to and does not have payment options. Below is an example of how your account will look if it’s a FedEx Third Party Account Type.
