What Does the Payment Cash on Delivery Means and How Does It Work?6 min read


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You have maybe heard that you can pay for the items you ordered online, on delivery. But what is important to note is that not every seller offers this type of payment method. So, what is cash on delivery (COD), and when can I ask for it?

Despite the COVID-19 outbreak, Eurosender and our logistics partners are still operating. Therefore, you can still book a door-to-door delivery, and get the items you need with no complications.

What does cash on delivery (COD) mean?

Cash on delivery is a type of payment made on delivery rather than in advance via online payment or bank transfers. It’s interchangeable with the term “collect on delivery” as it nowadays also includes transactions by credit or debit cards and other forms of cashless payment. Therefore, the name does not necessarily mean you must have the money in the physical form of the currency. However, you must check with the company you are expecting the goods from if this payment method is available or not.

Who accepts cash on delivery?

Note: The following information is general; therefore, you would have to check with the selected store/restaurant/provider as they vary in different countries.

  • Many food deliveries allow you to pay on delivery
  • Some courier companies allow for this payment method
  • Some online stores

Do courier companies accept cash on delivery?

Courier companies that allow for this payment method require that the receiver is physically present at the delivery address to finalise this transaction.

If no one is there to accept the parcel, the driver will have to make another delivery attempt. If he/she repeatedly fails to deliver the package because the receiver was not present, the parcel will be stored in a local depot or sent back to the seller. Moreover, courier companies limit the maximum amounts for cash on delivery shipments, and this number can vary from a company to company but is usually around 1000€. If you’re buying something of a higher value, cash on delivery method might therefore not be possible in this case.

Can I choose COD with Eurosender?

Unfortunately, at the moment, this is not an available option. However, we offer different payment methods, starting from credit and debit cards, PayPal, bank transfers, and Eurosender credits.

Customers registered on our platform, whether businesses or individuals enjoy excellent benefits and discounts up to 10% when paying with Eurosender credits.

Is making an online payment a better alternative for the buyers?

For a buyer, online payment is better for various reasons:

  • It gives you better control over expenses– cash on delivery payment options can sometimes lead customers into making unwise decisions, and rash purchases as the payment are not due until the actual delivery date.
  • The buyer needs to be physically present to provide the payment– this means that the parcel cannot, for example, be left in a safe location or with the neighbour if the receiver is not at home.
  • Increased security– banks and developers are working on technologies to ensure greater security and online payments are here to stay.
  • Easy, quick and reliable – online payments are sometimes still a scary thing for some people. However, everyone should admit they’re easy to make and very straightforward. Making an online purchase should only take you a few minutes.
  • COD is the future of payment methods– the trends have considerably shifted towards online payments, so this has become a prominent feature in our modernised and tech-savvy world, and we might just have to learn to accept that.

When is it common to pay cash on delivery as an end-user?

Some of the reasons for choosing cash on delivery payment could be:

  • Being able to be present at the given address on the day of delivery– therefore more frequently determined by the ones who are retired or have flexible working hours.
  • Suitable for making smaller online purchases – couriers won’t accept cash on delivery payment for purchases of high value.
  • You would not have to leave your bank details online

Money inside package

Should sellers be in favour of online payments?

If you’re an e-commerce, online payment is a better choice because:

  • You avoid the costs of a refused delivery– if you want to make sure that the charges of return delivery are not imposed on you if the buyer decides to refuse the package.
  • You get paid for your service faster – online payment also means that the funds will be transferred to you more quickly than if you had to wait for the cash on delivery payment.
  • You can enjoy increased security – not only for the buyer but also for you as a seller. You will know that you will get the money on your transaction, and you will, therefore, be more at peace.
  • It’s available in every country– some countries (like Sweden) won’t even accept cash on delivery payments as they’re trying to distance themselves from cash payments and only encourage online or cashless payments. We believe this trend is here to stay and that cash payments are already on their way to become obsolete.

Should sellers look for services offering this option?

As a small e-commerce owner, working with the courier companies offering this option of payment could be a smart decision. COD would especially make sense in two cases:

  1. If you’re a newly-established company that doesn’t have many online reviews or other proofs of credibility yet as offering a cash on delivery payment can make the buyer more confident in the reliability of the company. However, this method of payment is usually the choice of people who aren’t tech-savvy or, for some reason, tend not to trust online transactions. If such customers are among your target audience, choosing to offer cash on delivery payment could lead to more new customers and consequently to increased sales.
  2. Additionally, offering this payment option also gives the possibility of purchasing the customers without sufficient funds on their credit card or to the younger customers who don’t yet own one, so this could also target these types of audience.

However, sellers offering this type of payment should also take into consideration possible complications that may arise. As the buyer is not obliged to accept delivery, he or she can, therefore, refuse it and the seller might end up having to pay for additional costs of return delivery. Clients choosing this type of payment are usually also less committed to the purchase than the ones who paid for it in advance, so refused shipments are really not such an uncommon case.

Do you have more questions? Do not hesitate to contact us.

Last modified: April 9, 2020

2 Responses to " What Does the Payment Cash on Delivery Means and How Does It Work? "

  1. Kaycee Li says:

    You have remarked very interesting points! ps nice website .

  2. Stephanie M Snow says:

    Which companies still offer COD for payment?

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