Collect on Delivery

Collect on Delivery

Collect on Delivery or COD is a financial transaction where the payment of products and/or services received is done at the time of actual delivery rather than paid for in advance. The term is mainly applied to products purchased from a third party, and payment is made to the deliverer.

This type of transaction was previously known better as "cash on delivery", however as other forms of payment became more common the word "cash" was replaced with the word "collect" to incorporate transactions with checks, credit cards or debit cards.

Depending on the consumer's balance in their checking account, the transaction is important to first know that the check is sustainable without having a "bounced check".

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