Norfolk Southern Finance Charge Frequently Asked Questions
- Why is NS assessing finance charges?
- When will the finance charge go into effect?
- What are the NS credit terms and when does the clock start?
- How is the finance charge calculated?
- Will I receive finance charges on disputed bills?
- How can I dispute a bill?
- Will mail time be taken into consideration?
- Will I receive only one finance charge statement a month and where will this be mailed?
- What supporting information will be provided on the finance charge bill?
- Will finance charges be billed for miscellaneous charges?
- If I use a third party payment service, will I still be subject to finance charges?
- Who should I contact regarding the finance charge?
- What steps can I take to avoid these charges?
As with any business, we expect prompt payment for our services and the slow payment of these services causes us to bear increased costs. A finance charge encourages customers to either pay their bills within the credit terms or advise Norfolk Southern promptly of bills believed by the customer to be in error. Prompt notice of disputed bills allows both the customer and Norfolk Southern to more quickly and easily resolve the dispute.
The finance charge will begin on October 1, 2003. Any freight bill covering a linehaul move that is unpaid and undisputed beyond credit terms will accrue a daily finance charge. The first monthly bill will be produced on November 3, 2003 for finance charges accruing in October.
Norfolk Southern has credit terms of 15 days starting from the invoice date. Customers paying from their internal records (in the absence of a bill), should assume the NS freight bill would be generated a day after the waybill date or shipment tender date.
The finance charge is 12% annually (or 1% per month) pro-rated on a daily basis for each day the payment is beyond credit terms. At 12% annually, the daily rate is .0329% (12%/365 days). At the end of each month, the amount of the bill is multiplied by the daily rate (.0329%) and the number of days the bill is beyond terms to determine the monthly charge. For example, a bill for $1000 paid 15 days beyond terms would accrue a finance charge of $4.94. ($1000 x .0329% x 15 days.)
Once a bill is disputed, the finance charge is suspended for the duration of the dispute. If the bill is determined to be correct and returned to the customer for payment, it again begins to accrue daily finance charges but only from the time the dispute was found to be invalid.
Bills can be disputed on-line using eFreight Bill under accessNS on the NS website. You may also call, write, email or fax the dispute to the Customer Account Representative whose contact information (including name, telephone number, fax number, and email address) is shown on the bill.
No. The payment should be mailed in time to reach NS by the end of the credit period. The finance charge continues to accrue daily until NS receives the payment. The date the payment is made or postmarked is not considered the payment date.
The invoice for the finance charge will be produced on the first business day of the month and will include charges for bills past credit terms during the previous month. Each mailing address will receive one invoice for all finance charges arising for that address. The invoice will be mailed to the same address as the original freight bill.
The supporting detail will include pertinent information from the original freight bills (such as car number, shipment date) to allow the customer to identify each bill that was not paid within terms.
Not at this time; however, the credit period is the same for miscellaneous bills and these bills should be paid or disputed within credit terms.
Yes. Regardless of the payment or approval process, the payment must still be received by NS within credit terms to avoid a finance charge.
Your Customer Account Representative whose contact information (including name, telephone number, fax number, and email address) is shown on the bill.
The best way to avoid a finance charge is to promptly remit payment and include sufficient remittance advice to allow proper identification of payment. If you believe a bill is in error, contact your Customer Account Representative to ensure the finance charge is suspended until a resolution can be reached.
Customers who join our 14-day ACH (Automated Clearing House) draft plan are exempt from finance charges. For your convenience, the attached document provides additional information about the draft plan. If you have more questions or would like to enroll in the draft plan, please contact Aleyne Stroup at (404) 529-1123 or at email@example.com
Electronic billing and payment options can also help to minimize finance charges. To find out more about EDI freight billing, please contact Caye Hale at (404) 527-2567 or at firstname.lastname@example.org .
To find out more about Electronic Funds Transfer (EFT), contact Vivian Thomas-Jones at (404) 529-2126 or at email@example.com.