Cash On Delivery - COD
Cash on delivery means that the item will be paid for when it’s delivered, not in advance...like you would if you were paying with a credit card at the time the order was placed.
To the delivery person, it’s often called “Collect on Delivery.”
For example, say someone is selling a large quantity of fly swatters to a campground resort in your area with C.O.D. terms. If you're the customer and a company selling to you has put you on COD status, it's bad. It means they don't trust you, and that they won't release the goods they're selling to your possession until they have clear and real payment. Think: cashier's check handed to the angry postal worker.
Just to be clear to all parties and ensure this new transaction also goes well, a company could specify to UPS that it was C.O.D., and mark the package with how much and how to collect. Obviously, UPS won’t collect cash, but the seller can specify it only takes cashier checks, or that money orders are acceptable (versus a personal check).
Related or Semi-related Video
Finance: What is Cash on Delivery (COD)?41 Views
Finance a la shmoop what is cash-on-delivery?
or CoD well if you have a deadbeat buyer who's taken forever to pay you in [Danny Deadbeat laying on sofa]
the past think remember Popeye and wimpy borrowing money for burgers next Tuesday
when he actually never pays you'll eventually have to make that customer
that deadbeat a COD status purchaser well CoD has nothing to do with cheap
fish rather it stands for cash on delivery like you get cash when the good
is delivered and it means that the postal person or UPS gal or FedEx dude
has to collect the cash you are owed before they will actually leave the [Cash transfers to mail people]
package being shipped at the warehouse on your doorstep or van parked you know
down by the river if a client has such bad credit or has such a miserable
payment record that they have to be put on COD status well you may really have
to re-evaluate your relationship there COD also carries charges and often
they're big because a postal worker may have to ring the door eight times before [Postal worker ringing door bell]
finding the deadbeat at home and then even if he is home well it's uncertain
whether or not he'll have the ready cash to pay for whatever goods he just
ordered and sometimes you'd have better odds of getting money out of this thing [Pile of fish appear]
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