Differences Between a Failed Payment Fee (FPF) and a Late Payment Fee (LPF)

Understanding the distinction between a Failed Payment Fee (FPF) and a Late Payment Fee (LPF) helps in managing payment expectations and fees applied to transactions.

🔹 Failed Payment Fee (FPF)

A Failed Payment Fee (FPF) is incurred when a payment is declined by the customer’s bank or card provider due to reasons such as:

• Insufficient funds
• Expired or blocked card
• Bank rejection of the transaction

• For a more detailed explanation, refer to 📌 Why Payments Fail to understand common failure reasons and how to prevent them.

This fee is applied because an attempted payment could not be successfully processed.

🔹 Late Payment Fee (LPF)

• A Late Payment Fee (LPF) is charged when a payment is made after the designated due date. It serves as a penalty for overdue payments.

🔹 Ezypay does not charge late payment fees. However, merchants may implement their own policies regarding late payments.

By understanding these differences, merchants and customers can better manage their billing responsibilities and avoid unnecessary charges.