# Cash on Delivery Systems

*Last updated: 2026-06-23*

> Cash on Delivery (CoD) systems tie payment directly to physical handover: the delivery agent collects the amount due – in cash or by card – at the recipient's door and remits it to the seller through a settlement process.

Cash on Delivery (CoD) systems tie payment directly to physical handover: the delivery agent collects the amount due – in cash or by card – at the recipient's door and remits it to the seller through a settlement process. Unlike prepayment or invoice billing, the transaction is completed at the point of delivery, which shifts risk and complexity onto the carrier. Non-delivery risk is a real concern: if the customer refuses the shipment, the goods must be returned and the revenue is lost. The model is most prevalent in markets with low e-commerce trust or limited banking infrastructure, particularly in parts of Eastern Europe, the Middle East, and North Africa. The CoD surcharge levied on the shipper is a separate line item and distinct from the system itself.

**Source:** [https://en.wikipedia.org/wiki/Cash_on_delivery](https://en.wikipedia.org/wiki/Cash_on_delivery)

## Quick Facts

| Property | Value |
|---|---|
| Term | Cash on Delivery Systems |
| Language | EN |
| Word count | 128 |
| Last updated | 2026-06-23 |
| Source | https://en.wikipedia.org/wiki/Cash_on_delivery |

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