Wiki Entry

Cash on Delivery

Cash on Delivery (COD) is a payment method where the buyer pays for goods at the time of physical delivery rather than paying in advance online.

Also known as:CODPay on DeliveryCash on Receipt
Cash on Delivery remains one of the most popular payment methods in emerging e-commerce markets. In regions like India, Pakistan, and the Middle East, COD can account for 50-80% of all e-commerce transactions.

How It Works

  • Customer places an order and selects COD as payment method
  • Merchant processes and ships the order
  • Delivery agent collects payment at the time of delivery
  • Payment is remitted to the merchant after deducting fees

    • Benefits

  • Trust Building: Customers can inspect products before paying
  • Market Reach: Access customers without credit cards or digital payment methods
  • Reduced Cart Abandonment: Removes payment friction at checkout

    • Challenges

  • Fake Orders: Higher risk of fraudulent or prank orders
  • RTO (Return to Origin): Customers may refuse delivery, increasing costs
  • Cash Handling: Logistics of collecting and remitting cash payments

    • Key Aspects of Cash on Delivery

    📱

    Phone Verification

    Verifying customer phone numbers via OTP to reduce fake orders

    Learn more
    🛡️

    Fraud Prevention

    Strategies and tools to prevent COD fraud and fake orders

    Learn more
    📦

    Return to Origin

    When orders are returned due to delivery failure or refusal

    Learn more
    📍

    Address Validation

    Ensuring delivery addresses are accurate and deliverable

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    ✅

    Order Confirmation

    Confirming orders before processing to reduce RTO

    Learn more
    💰

    COD Fees

    Additional charges applied to Cash on Delivery orders

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    Need Help with Cash on Delivery?

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