Ever shipped a package only to see an unexpected “address correction fee” pop up on your invoice? You’re not alone. Address correction fees are among the most common—and most frustrating—shipping surcharges that businesses face.

An address correction fee is a surcharge that UPS and FedEx charge when they need to modify a package’s delivery address after it’s already entered their systems. These fees can reach $25 per package, adding up quickly if your business ships hundreds or thousands of packages per month.

Unfortunately, many shippers don’t realize they’re being charged these fees until they review their invoices weeks later, and by then, the damage is done. Understanding what triggers these fees and how to prevent them is essential for any business serious about controlling shipping costs.

In this blog, we’ll break down everything you need to know about address correction fees, including how much they cost, what scenarios trigger them, and strategies to avoid them altogether.

Key Takeaways:

  • An address correction fee is applied when a shipper enters an incorrect delivery address, and the carrier must make a correction to complete the delivery.
  • The most common triggers include incomplete addresses, typos, ZIP code mismatches, and incorrect street information that stem from manual data entry and outdated customer databases.
  • Prevention starts at the point of entry through address validation software, standardized data formatting, clean customer databases, and trained shipping teams who can spot issues before packages ship.
  • Parcel spend management technology provides the visibility and tools needed to monitor address correction fees in real time, identify systemic patterns, and recover inappropriately charged fees through carrier audits.

What Are Address Correction Fees?

Address correction fees are shipping surcharges that carriers impose when they must update or clarify delivery information after a package has been tendered. This might sound straightforward, but the implications for your shipping budget can be significant.

When you hand off a package to UPS or FedEx, you’re certifying that the address information is accurate and complete. If the carrier’s system detects an issue—whether it’s a missing apartment number, an incorrect street name, or a ZIP code that doesn’t match the city—they’ll attempt to correct it using their internal databases and delivery intelligence.

The correction happens automatically in most cases. Your package will still be delivered, but you’ll see a fee on your next invoice. From the carrier’s perspective, they’re providing an additional service by fixing your address data rather than returning the package as undeliverable.

The real risk lies in your shipping operation: incomplete data entry, outdated customer records, and manual address input processes can all lead to these costly fees accumulating over time.

How Much Do Address Correction Fees Cost?

Address correction fees vary slightly by carrier, but both UPS and FedEx charge substantial fees for this service. Shippers need to take note of fees per package versus per shipment. For fees per package, if you send three packages to the same incorrect address, you’ll be charged three separate correction fees. For high-volume shippers, this can translate to thousands of dollars in unexpected costs each month.

UPS Address Correction Fees 2025

As of 2025, UPS charges an address correction fee of up to $25 per package when it needs to modify delivery information. Here are the specific charges:

  • Address Correction – Air:  $23.50
  • Address Correction – Ground: $23.50
  • Address Correction (Maximum per Shipment): $164.50

FedEx Address Correction Fees 2025

FedEx applies similar pricing for address corrections across its service levels:

  • U.S. Package Services, International Package Services, FedEx International Priority Freight, FedEx International Economy Freight, FedEx International Deferred Freight: $24 per correction
  • U.S. Express Freight Services: $130 per correction
  • Maximum charge with FedEx Express Multiweight® Pricing: $168 per shipment
  • Maximum charge with FedEx Ground Multiweight® Pricing: $72 per shipment

The fees typically appear on your invoice under labels like “Address Correction” or “Delivery Address Correction,” though the exact terminology may vary depending on your carrier agreement and invoicing format.

What makes these fees particularly challenging is their retroactive nature. You won’t know you’ve been charged until after the package has been delivered and the invoice is generated—usually days or weeks after the shipment. This delayed feedback makes it difficult to identify patterns or root causes in your address management process.

For businesses shipping even modest volumes, address correction fees can quickly become one of the top five most expensive surcharges in their parcel spend.

5 Common Scenarios That Trigger Address Correction Fees

Understanding what triggers address correction fees is the first step toward preventing them. These charges aren’t random—they follow specific patterns based on how address data enters and moves through carrier systems.

1. Incomplete Addresses

Missing information is one of the most frequent culprits triggering address correction fees. When an address lacks apartment numbers, suite designations, building names, or unit identifiers, carriers must investigate and add the missing details. Multi-tenant buildings are especially problematic because the carrier knows the street address but needs additional information to complete delivery.

2. Incorrect Street Information

Typos in street names, wrong street types (Avenue vs. Street), or incorrect street numbers all trigger corrections. Even small errors—like “123 Main St” when the correct address is “123 Maine St”—require carrier intervention. These mistakes often stem from manual data entry or outdated customer databases.

3. Address Typos and Data Entry Errors

Simple typos can be costly. Misspelled city names, transposed numbers in street addresses, or extra spaces in address fields may seem minor, but they force carriers to decode and correct the information. These errors frequently occur during manual order entry, when customers self-enter shipping information.

4. ZIP Code Mismatches

When the ZIP code doesn’t correspond to the city and state provided, carriers must determine which element is correct and adjust accordingly. This commonly happens when customers move and provide their new street address but accidentally include their old ZIP code, or when e-commerce platforms auto-populate incorrect postal codes.

5. Rural Route and PO Box Issues

Rural addresses often require specific formatting that differs from standard street addresses. Missing rural route numbers, incorrect box numbers, or incomplete delivery instructions can all result in corrections. Similarly, PO Box addresses that lack proper formatting or box numbers will trigger fees.

How to Avoid Address Correction Fees

Preventing address correction fees requires a proactive approach to address management. The good news is that most of these fees are entirely avoidable with the right processes and tools in place.

Implement Address Validation at Point of Entry

The most effective prevention strategy is to catch address errors before packages enter the carrier system. Address validation software cross-references customer-provided addresses against official postal databases in real time. When a customer enters their shipping information on your website or your team inputs an order, the system immediately flags incomplete or incorrect addresses for review.

Standardize Your Address Data

Create consistent formatting rules for how addresses are entered and stored in your systems. This includes:

  • Requiring apartment/suite numbers as mandatory fields for multi-unit buildings
  • Using standardized abbreviations (St, Ave, Blvd) consistently
  • Implementing dropdown menus for states rather than free-text fields
  • Setting character limits that match carrier requirements
  • Validating ZIP codes against city and state selections

Standardization reduces human error and ensures that your address data meets carrier specifications before shipment.

Maintain Clean Customer Databases

Outdated customer information is a major source of address correction fees. Regularly audit and update your customer database, especially for repeat customers. When customers move or update their information, ensure these changes propagate across all your systems—from your CRM to your warehouse management system to your shipping platform.

Train Your Shipping Team

Even with technology safeguards, human oversight matters. Train your warehouse and customer service teams to recognize common address red flags, such as missing apartment numbers, unusual ZIP code patterns, or incomplete addresses. Empower them to reach out to customers for clarification before shipping rather than hoping the carrier will figure it out.

Parcel Spend Management Technology Can Help Streamline Shipping Processes

While prevention strategies are essential, even the most careful shippers will occasionally face address correction fees. This is where parcel spend management technology becomes invaluable—not just for preventing fees, but for identifying patterns and recovering costs when corrections do occur.

Modern parcel spend management platforms provide visibility into every surcharge on your invoices, including address correction fees that might otherwise go unnoticed. At Reveel, we help shippers:

  • Monitor shipping data in real time – Flag potential address issues before packages leave your facility, allowing you to correct problems immediately rather than discovering them weeks later on an invoice
  • Identify patterns and root causes – Analyze address correction fees over time to spot trends across sales channels, regions, customer segments, or warehouse locations, so you can target improvement efforts where they’ll have the greatest impact
  • Audit and recover inappropriately charged fees – Review address correction charges to ensure carriers applied them correctly, then dispute and recover fees that were charged inappropriately

By combining prevention, visibility, and recovery, parcel spend management technology transforms address correction fees from an invisible budget drain into a manageable, controllable cost.

To prevent future losses and make smarter shipping decisions, request a demo with our team today!