It is no secret that truckers have some of the most complicated invoices. Trying to keep up with everything and make sure that all of the payments are being made in a timely fashion can be a daunting task for any business. As a result, many trucking companies are turning to freight brokerages or third-party invoice services to handle their billing and invoices. With these services, truckers can rest assured that all of their billing needs are being taken care of professionally and quickly. But, before you sign up for a trucker invoice service, it is important to understand what additional costs you might be looking at.
Set-Up Costs
Many trucker invoice services require a set-up fee prior to using their services. This fee typically covers the cost of setting up the trucker’s account, which includes creating databases and software integrations. Depending on the invoice service, this set-up cost can range anywhere from $75 to $300.
Monthly Subscription Fees
Many invoice services charge a monthly subscription fee. This fee can be either a flat amount or vary based on the number of invoices that are sent out each month. Before signing up for a service, make sure you understand what the monthly subscription fee will be.
Transaction Fees
The transaction fees for trucker invoice services vary depending on the service provider. Generally, the fee can range from 0.5% to 2% per invoice issued. These fees are added to the total amount of the invoice that the trucker is responsible for paying.
Payment Processing Fees
Most trucker invoice services use either a third-party payment processing provider, or their own in-house payment processing system. Either way, there is usually an additional fee associated with the payment processing. The fees vary depending on the payment processor, ranging anywhere from 3.5% to 6%.
Invoice Late Fees
If a trucker fails to pay their invoice in a timely manner, they may be subject to a late fee. These late fees will be acquired by the third-party invoice service and will be charged to the trucker. The amount of the late fee can vary, but is typically in the range of 5% to 10% of the unpaid invoice’s total amount.
Filing Fees
If a trucker has to pay multiple invoices or has complicated billing needs, some invoice services charge a separate fee for filing and fulfilling different invoices. This fee is typically a fixed amount per invoice.
Returned Checks Fees
If there is an issue with a payment—such as a check bouncing or a credit card being declined—the invoice service may charge a fee. This fee is typically in the range of $25 to $50 and will be charged to the trucker.
Credit Card Acceptance Fees
If the invoice service allows for the acceptance of credit cards, there may be an additional fee for credit card processing. This fee is typically charged as a percentage of each transaction and can range from 2.5% to 4%.
International Wire Transfer Fees
If a trucker’s invoice needs to be paid in different currencies or from international customers, there may be additional fees associated with the international wire transfer. These fees can range from $25 to $50 and will be charged to the trucker.
Skip Tracing Fees
If a client does not pay an invoice, the invoice service may charge a fee to track down the client. This fee is typically in the range of $50 and is charged directly to the trucker.
Currency Exchange Fees
If a trucker invoices an international customer, they may be subjected to currency exchange fees. Depending on the invoice service, this fee can range anywhere from 1.5% to 5%.
Insufficient Funds Fee
If there is an issue with the customer’s payment—such as insufficient funds or a bounced payment—the invoice service may charge a fee. This fee can typically range from $25 to $50 and will be charged to the trucker.
Account Management Fee
For some invoice services, there is a separate fee for managing the customer’s account. This fee is typically a fixed amount and is charged to the trucker.
Check Printing Fee
Some invoice services offer check printing services for truckers. Depending on the service, this fee can range from $0.75 to $1.50 per check.
Credit Card Bridge Fee
In some cases, invoice services use separate payment processing platforms to bridge credit cards and ACH payments. This often involves an additional fee, which is typically in the range of 1.5% to 8%.
Idle Fees
Idle fees are charged whenever a trucker invoices a customer and is unable to collect payment within a certain amount of time. Depending on the service, this fee can range anywhere from $10 to $50.
Cancellation Fee
If a trucker decides to cancel their account with the invoice service, they may be charged an additional fee. This fee is typically in the range of $15 to $95.
Delivery Fees
Some invoice services offer additional delivery methods, such as direct deposit or overnight delivery. Additionally, delivery fees may also be charged for filing paperwork or invoices to the customer’s address.
Legal Fees
In some cases, invoice services may require legal paperwork like a contract or warranty documents. Depending on the situation, this could involve a legal fee.
Gratuity or Tip
Some invoice services ask that the trucker leave a gratuity or tip after the invoice has been processed as a “thank-you” for their services. This amount is typically at the discretion of the trucker.
Using a third-party invoice service is a great way for truckers to manage their invoices in a more efficient and timely manner. However, it is important to keep in mind that there may be additional costs associated with using this service. By understanding all of the associated fees, truckers can make sure that they are not overpaying, and that they are getting the service they need.