Cash on Delivery (COD)

What is Cash on Delivery?

Cash on delivery is a payment which is collected when the product is delivered to the customer at their doorstep. The term cash on delivery, commonly known as COD, is usually discussed before finalising the sale.

When COD is agreed upon the payment terms, it means that the payments are collected at delivery.

Cash in COD

The use of cash in COD refers to the broader term. To be more specific, cash includes a variety of payment types including paper bills and coins, credit or Debit Card, cheque and so on. Although the payment type accepted for COD is generally specified by the seller, it means that the buyer must be ready to provide the full payment when the customer receives the delivery.

Why do Businesses offer COD?

Online payment option and fast Bank transfers might cause a business to think about COD whether it eases the customers. Here is the situation where COD can help a business:

• New businesses can benefit from Offering cash on delivery because they are still becoming established. It also shows reliability to the customers, which ensure that their orders will be fulfilled and only requesting payment after the delivery.

• If a customer is not able to pay online, they can still complete a sale by using the option of COD.

• For instance, a customer might request COD, which is possibly the most sensible method of completing a transaction as it does not leave a record on credit card or on the bank statement.