How do AfterShip Protection charge for the premiums and pay for claims?
AfterShip Protection is a free service for merchants.
Because AfterShip Protection lets consumers buy protection during the check-out process, merchants will collect the premiums first. Merchants would need to transfer the premiums collected to AfterShip Protection.
AfterShip Protection will only deduct the premiums from the credit card that merchants added during the onboarding process. At the start of each month, AfterShip Protection will deduct the premium fees of the previous month.
AfterShip Protection charges the lowest premium of $1 for every $100 order value.
For example:
For an order with a total value of $99, the premium charged will be $1.
For an order with a total value of $101, the premium charged will be $2.
For an order with a total value of $199, the premium charged will be $2.
Noted:
The initial premium fee rate will be adjusted according to your claim ratio.
If your claim ratio exceeds a specific percentage, the premium will be adjusted accordingly as the claim ratio increases by the insurance company.
The insured amount specifically applies to the discounted order amount and excludes any additional charges such as Shipping and Tax fees.
AfterShip Protection will only charge ‘Active’ coverage premiums in the month. For example,
If the coverage is bought on July 20th, and active on July 21st, we’ll charge the premium at the beginning of Aug.
If the coverage is bought on July 30th, and active on Aug 1st, we’ll charge the premium at the beginning of Sep.
The insurance company will pay most of the claims within 2-5 business days. When the claim status becomes ‘Approved’, means the claim is going to be paid soon. When the claim status is ‘paid’ means the claim has been paid by the insurance company.
In order to reduce unnecessary expenses, AfterShip Protection will pay the total claim amount for this month to merchants at the beginning of next month.
For example,
If the claim with the $200 amount is submitted on July 28th, and paid on Aug 2nd.
AfterShip Protection will pay the $200 claim amount at the beginning of Sep.
This means that at the beginning of Sep, AfterShip Protection will pay merchants all claims paid in Aug.
Because the claim paid amount will be paid to merchants, merchants can choose to reship or refund to consumers.
At the beginning of each month, we calculate the ‘active premiums’ and the ‘paid claim amount’ of the last month.
And we’ll calculate the difference between ‘active premiums’ and ‘paid claim amount’,
If the difference is positive, AfterShip will deduct the difference from the merchant’s credit card at the beginning of the month.
If the difference is negative, AfterShip will transfer the difference to the merchant via PayPal or Protection credit which can be deducted. Merchants can choose a way based on their needs.
Merchants can add the ‘Paypal’ account on the Protection Setting page > Payment info > Billing contact.
At the beginning of each month, AfterShip Protection will send a billing detail email to the billing contact that the merchant provided during the onboarding process. Merchants can update the billing contact on the Protection Setting page > Payment info > Billing contact.
AfterShip Protection also show the billing details of each month on the admin site so that merchants can download them anytime.
Merchants can check and download the billing details on the Protection Setting page > Billing info > View all.
In Excel, merchants can see the active premiums amount and detail list, the paid claim amount, and the paid claims detail list.
If you have any questions about billing, please contact us at [email protected]
Because AfterShip Protection lets consumers buy protection during the check-out process, merchants will collect the premiums first. Merchants would need to transfer the premiums collected to AfterShip Protection.
AfterShip Protection will only deduct the premiums from the credit card that merchants added during the onboarding process. At the start of each month, AfterShip Protection will deduct the premium fees of the previous month.
1. How much does AfterShip Protection charge for premiums
AfterShip Protection charges the lowest premium of $1 for every $100 order value.
For example:
For an order with a total value of $99, the premium charged will be $1.
For an order with a total value of $101, the premium charged will be $2.
For an order with a total value of $199, the premium charged will be $2.
Noted:
The initial premium fee rate will be adjusted according to your claim ratio.
If your claim ratio exceeds a specific percentage, the premium will be adjusted accordingly as the claim ratio increases by the insurance company.
The insured amount specifically applies to the discounted order amount and excludes any additional charges such as Shipping and Tax fees.
AfterShip Protection will only charge ‘Active’ coverage premiums in the month. For example,
If the coverage is bought on July 20th, and active on July 21st, we’ll charge the premium at the beginning of Aug.
If the coverage is bought on July 30th, and active on Aug 1st, we’ll charge the premium at the beginning of Sep.
2. How do merchants get the claims paid?
The insurance company will pay most of the claims within 2-5 business days. When the claim status becomes ‘Approved’, means the claim is going to be paid soon. When the claim status is ‘paid’ means the claim has been paid by the insurance company.
In order to reduce unnecessary expenses, AfterShip Protection will pay the total claim amount for this month to merchants at the beginning of next month.
For example,
If the claim with the $200 amount is submitted on July 28th, and paid on Aug 2nd.
AfterShip Protection will pay the $200 claim amount at the beginning of Sep.
This means that at the beginning of Sep, AfterShip Protection will pay merchants all claims paid in Aug.
Because the claim paid amount will be paid to merchants, merchants can choose to reship or refund to consumers.
3. How can merchants transfer Premiums to AfterShip Protection?
At the beginning of each month, we calculate the ‘active premiums’ and the ‘paid claim amount’ of the last month.
And we’ll calculate the difference between ‘active premiums’ and ‘paid claim amount’,
If the difference is positive, AfterShip will deduct the difference from the merchant’s credit card at the beginning of the month.
If the difference is negative, AfterShip will transfer the difference to the merchant via PayPal or Protection credit which can be deducted. Merchants can choose a way based on their needs.
Merchants can add the ‘Paypal’ account on the Protection Setting page > Payment info > Billing contact.
4. How can merchants see the protection billing detail?
At the beginning of each month, AfterShip Protection will send a billing detail email to the billing contact that the merchant provided during the onboarding process. Merchants can update the billing contact on the Protection Setting page > Payment info > Billing contact.
AfterShip Protection also show the billing details of each month on the admin site so that merchants can download them anytime.
Merchants can check and download the billing details on the Protection Setting page > Billing info > View all.
In Excel, merchants can see the active premiums amount and detail list, the paid claim amount, and the paid claims detail list.
If you have any questions about billing, please contact us at [email protected]
Updated on: 27/11/2023
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