Guide
Short pay and chargebacks: read the remittance, then dispute
A payment lands for less than the invoice. Sometimes the reason is on the remittance. Sometimes it is a single vague line. Either way the clock on your dispute may already be running. This guide shows how to sort the gap and answer it.
In short
- Match the payment to the invoice line by line. Name every dollar of the gap and the reason given for it.
- Sort each deduction: agreed in advance, based on paperwork you can fix, or one you dispute with proof.
- Dispute in writing, one message per load, with documents attached. Do not argue by phone alone.
- Your contract sets how long you have to dispute. Read it today, not after the first short pay.
Where the money went
A short pay is the invoice total minus what arrived. The remittance, sometimes called a payment advice or statement, is the broker's explanation. It may list deductions by code, by note or not at all.
The figure shows an invented load. The invoice was $2,640. The broker paid $2,305. Three deductions, marked A, B and C, explain the whole gap. Once each has a name, each can be answered on its own.
If the remittance gives no reason, ask for one in writing before you do anything else.
Common deduction types, in general terms
Names differ by broker. Your agreement says which of these are allowed.
| Type | What it usually means | First response |
|---|---|---|
| Accessorial rejected | Detention, lumper or similar line not approved | Send the rate con terms and the proof for that line |
| Late delivery | Broker says the load missed its window | Send the appointment and the POD with the delivery time |
| Missing paperwork | BOL, POD or rate con not matched to the invoice | Ask which document is missing, then resend with proof of sending |
| Rate adjustment | Broker pays a different rate than your invoice | Compare against the latest signed rate con revision |
| Cargo or damage hold | Money held pending a claim | Ask for the claim in writing and the release terms. Get legal advice if the amount is large |
| Fee or advance | Quick-pay fee, advance repayment or similar | Check it against what you agreed. Dispute only what you did not |
| Duplicate or offset | Broker thinks it paid before, or nets against another load | Ask which load it nets against and send both invoices |
Six steps from remittance to resolved
Match
Put the remittance next to the invoice. Tie out every line and the total.
Name
Write each deduction as a line: amount, label used by the broker, and your read of it.
Check the contract
Is the deduction allowed by the rate con or broker agreement? Note the dispute window.
Gather proof
Rate con revision, BOL and POD with times, receipts, driver messages and your original send record.
Dispute in writing
One message per load. Name the line, state the amount, attach the proof, ask for payment or a written reason.
Track
Record the date, the contact name and the reply. Follow up on a set date.
Want a second pair of eyes on short pays? See which of your last 20 loads were paid under the rate con.
Worked example EXAMPLE VALUES
Invented load. Invoice: linehaul $2,400.00 + fuel surcharge $150.00 + lumper $90.00 = $2,640.00. Payment received: $2,305.00.
| Item | Amount | Our answer |
|---|---|---|
| A. Lumper removed | $90.00 | Receipt was missing. Resend it |
| B. Late delivery | $145.00 | POD shows delivery inside the window. Dispute |
| C. Paperwork fee | $100.00 | Ask which document. Not in the rate con. Dispute |
| Total gap | $335.00 |
All numbers invented. If A and B are fixed, $235.00 returns. If C is also reversed, $335.00 returns. No outcome is guaranteed.
A plain dispute message
Keep it factual. Do not threaten, do not guess at motives, and cite the contract, not feelings. We are not lawyers. For large holds or claims, ask one.
The response window
Many brokers set a number of days to dispute a payment or bill an extra, counted from delivery or from the payment date. The number, and what counts as a valid dispute, sits in your broker agreement or rate con. verify your agreement, and a lawyer if the amount is large.
Put the date on a calendar the day a short pay arrives. A good claim sent after the window may get no answer.
Habits that prevent short pays
- Compare every rate con revision to the invoice before sending.
- Send POD and BOL with the invoice, and keep the send record.
- Put each accessorial on its own line with proof attached.
- Log every short pay with load number, broker, amount and reason.
- Look for repeat patterns by broker. The same deduction twice is a pattern.
Questions
Can a broker deduct without telling me?
It depends on your agreement. Some allow set-offs, many require notice. Read the deduction and set-off wording. If it is unclear, ask a lawyer.
Should I call or write?
Call if it speeds up the answer, then confirm in writing the same day. The written message is what you can attach later.
What if the remittance has no reason?
Ask for one in writing and give a date. Keep the request. A deduction with no stated reason is easier to challenge.
Does my factor handle this?
That depends on whether you factor with recourse and what your factoring agreement says. Ask your factor who disputes, and by when.
Is a cargo claim hold a short pay?
It looks like one, but it is a separate matter. Ask for the claim in writing and the release terms. We are not claims adjusters.
Related: rate con and invoice mismatch, broker payment delay, invoice aging, invoice aging tool, rate con vs invoice, broker not paying, bad broker cost calculator.
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