How does COD work

Technical Q&A

Topic summary

How COD Functions:

  • Customer pays the total order amount in cash at the time of delivery
  • Merchant receives order notification in admin panel but doesn’t get payment until delivery is completed
  • No third-party transaction fees apply since it’s a manual payment method

Implementation Requirements:

  • Shipments must be processed specifically as COD through the carrier
  • Major carriers (UPS, FedEx, DHL) support COD service
  • Carrier collects payment from buyer and deposits funds into merchant’s account
  • Merchants can generate COD-enabled shipping labels via carrier websites or multi-carrier shipping label apps

Unresolved Question:

A follow-up inquiry asks why new COD orders show as “paid” in the system before delivery is completed, but this remains unanswered in the thread.

Summarized with AI on October 31. AI used: claude-sonnet-4-5-20250929.
1

So i got an order using a cash on delivery way of payment and im not sure will the order come to my customer until pay it on delivery Can anyone explain how that works please

2

Hi @Jurica ,

If your customer chooses cash on delivery (COD) as their payment method, they will pay for the order at the time of delivery. Here’s how it works:

  • Order Confirmation

    • Once the order is placed, you will receive a notification, and the order will appear in your admin under the Orders section.

  • Payment Collection

    • The customer is required to pay the total amount in cash when the delivery is made. You will not receive the payment until the customer pays the delivery person.

  • No Transaction Fees

    • Since you’re using a manual payment method like COD, you won’t incur any third-party transaction fees for this order .

Quick note:

When providing the Cash on Delivery (COD) option for your customers at checkout, it’s essential to ensure that the shipments are processed as COD.

All major carriers offer support for the COD service. For example, when using UPS, FedEx, or DHL, you can create a shipment label that includes the COD option. In this scenario, the carrier will collect the payment from the buyer upon delivery, and the funds will be deposited into your account.

Therefore, you can visit the carrier’s website or use an application such as the multi-carrier shipping label app to generate the shipment label with the COD feature.

I hope it helps.

3

Hey there! Sorry to reply on this 3 month old thread. Just a question on COD. Why are new COD orders marked as paid if the deliveries are not done yet?