Cash on Delivery (COD), also known as Collect on Delivery, is a payment method where the recipients of goods make payment at the time they receive them. The carrier handles the payment collection and processing. If the buyer does not pay, the goods are returned to the seller or fulfillment center.
COD offers some benefits, such as mitigating the seller’s risk by ensuring payment upon delivery of goods. However, it may not be convenient or compatible with larger companies that have complex accounting procedures.