Cash On Delivery Definition
Cash On Delivery (or COD) means a good is paid at the time of delivery. If the buyer does not pay, then the good will be returned to the seller. This type of transaction is very often carried out by a shipping company. The advantage of the method is that it helps minimize the risk of fraud. The shipping company collects the price of the good and then transfers it to the seller. Payment can be effected by cash, certified check or money order, depending on what is in the shipping contract.