Cashondelivery

Cash on delivery (COD) is a payment method in which consumers pay for goods at the point of delivery rather than in advance. The merchant ships the item after the order is placed, and a courier or delivery agent collects payment from the recipient upon delivery. After collection, the funds are typically remitted to the merchant by the carrier, subject to fees and processing times.

In practice, COD flows as follows: a customer orders online or by phone; the selected delivery service attempts delivery; upon contact, the courier requests cash payment; the customer pays, or in some markets presents a card or digital wallet at the doorstep as a form of card-on-delivery or pay-on-delivery option; the courier issues a receipt and delivers the goods; the carrier settles the payment with the merchant after a short accounting cycle.

COD usage is common in markets with limited online payment penetration or consumer preference for cash. It is widely used in parts of Asia, Africa, and Latin America; in many Western markets COD is less common and often offered as a low-fee option.

Advantages include expanded merchant reach, reduced cart abandonment, and no need for customer credit checks. Disadvantages include higher operating costs, increased risk of non-payment or delivery refusal, cash-handling security risks, and potential delays in settlement.

Security and operations require cash handling controls, verification checks, receipts, and clear return policies. Some merchants cap order value or restrict COD to certain regions or product categories to manage risk.