What is a cash on delivery service?

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Cash on delivery (COD) is a payment method used in e-commerce and mail orders where payment for goods is made at the time of delivery rather than in advance. In a COD transaction, the buyer makes payment in cash or by check or credit card upon receiving the goods.

COD services are typically offered by courier or delivery companies and are popular in regions where online payment options are limited or not trusted. COD services provide customers with an added level of security as they only have to pay when they receive the goods, rather than in advance. This can be particularly useful for customers who are concerned about online fraud or who do not have access to credit cards.

COD services are also useful for businesses that want to reach customers who are not comfortable with online payments. However, COD services can be costly for businesses as the courier or delivery company usually charges a fee for the service. Additionally, there is a risk that the customer may refuse to accept the delivery or not have enough cash to pay, which can result in additional costs and delays for the seller.

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