Can you use credit cards for Cash on Delivery?

It depends on the courier. While the term is "Cash on Delivery," many modern logistics companies allow drivers to accept card payments via mobile terminals at the time of delivery. However, strict COD usually implies physical currency.

Often, yes. Courier companies may charge an extra fee for the service of handling cash and processing the payment on behalf of the seller.

What happens if the customer isn't home?

Usually, the driver cannot leave the package. Since payment is required to complete the exchange, the package goes back to the depot, and a redelivery attempt is made, or the customer has to pick it up.

What Is Cash on Delivery (COD) and How Does It Work?

What Is Cash on Delivery?

Cash on Delivery (COD) is a type of transaction where the recipient pays for a good at the time of delivery rather than using a credit card or bank transfer to pay in advance. If the customer does not pay, the package is not handed over.

Key Points

The essentials for buyers and sellers:

How it works: the customer chooses COD at checkout, the driver checks the amount due on arrival, and the collected payment is returned to the dispatcher or employer after the route.
Why businesses offer it: it reaches customers who are not comfortable paying online or do not have a bank account, and lets them pay once the product is in hand.
The trade-off: if a customer refuses the delivery, the seller can lose the shipping cost, and cash takes longer to reach the bank.

For a full guide, read our full guide to cash on delivery.

Frequently asked questions

It carries financial risk. If a customer refuses the delivery, the seller loses the shipping cost. It also creates a longer cycle for accounts receivable, meaning the seller waits longer to actually use that revenue.