Cash On Delivery (COD)

Logistics Term

Cash on Delivery (COD) Definition

Cash on Delivery (COD) is also known as payment on delivery, cash on demand, payment on demand, or collect on delivery. The customer pays for the transport upon delivery instead of in advance.

Cash on delivery accepts most forms of payment, including:

Credit Cards
Money Orders
Digital Payments

Pros and Cons of Cash on Delivery

There are many benefits of using cash on delivery for transport, including:

Building Customer Trust: Because there is a wide variety of scams in transport, customers may be wary of paying upfront. COD offers an alternative to pay after services are rendered, which means the customer is less likely to be a victim of one of those scans.

Accessibility: As widespread as digital payments are, not everyone can access that or a credit card. Cash on delivery allows an alternative option.

Flexibility: Cash on delivery offers multiple options to help the customer as much as possible.

There are also risks and cons of using cash on delivery, including:

Seller Risk: If the customer refuses to pay, it can create complications and expensive litigations.

Increased Costs: Higher shipping costs can be incurred because of additional service charges that deal with cash payments.

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