Cash on Delivery (COD)

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Cash on Delivery (COD)

Cash on Delivery (COD), also known as collect on delivery, is a payment method typically used in mail order sales where payment is made at the time of delivery rather than in advance. This method offers customers the security of seeing and verifying their purchased items before making payment, thus reducing the risk associated with advance payments. If the customer is not satisfied or chooses not to accept the goods at the point of delivery, the items are returned to the retailer or the fulfillment center. This system is particularly popular in regions where online payment systems are less trusted or in nascent stages. COD transactions provide an assurance to both the seller and the buyer by minimizing financial risks and enhancing trust. The method is also beneficial for businesses as it can potentially increase the customer base by tapping into markets that prefer COD due to lack of credit facilities or digital payment options.

 

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