UPS Residential vs Commercial For Rating
UPS has an option in their API that verifies if the address at either residential or commercial. The customer should NOT have the ability to choose residential or commercial. 9 times out of 10 they pick commercial for the lower rate. The residential fee is $3.10, so yes this adds up quick when the wrong rate is calculated.
This is very import for our customers also. Our wholesale customers order in large quantities that might end up being 25 separate boxes. That ends up being a $75 difference, and a lot of them don't know if they are considered a business or residence by UPS. For example, the small business working from their homes, or anything attached to a farm is always considered a residence but most customers will put themselves down as a business for the cheaper rates.
Also physical validation will pickup the extended area surcharges that are in addition to the residential rates if tied to a physical address instead of the zip code. :-)