Cash On Delivery - COD

AAA

DEFINITION of 'Cash On Delivery - COD'

A type of transaction in which payment for a good is made at the time of delivery. If the purchaser does not make payment when the good is delivered, then the good will be returned to the seller.

Payment can be made by cash, certified check or money order, depending on what is stipulated in the shipping contract.

INVESTOPEDIA EXPLAINS 'Cash On Delivery - COD'

This type of transaction is usually done through a shipping company and allows both the seller and the buyer of the product to minimize the risk of fraud or default. COD allows the purchaser to pay at the time of delivery instead of having to pay upfront. Payment is made to the shipping company, and the shipping company then relays the payment back to the seller.

RELATED TERMS
  1. Uniform Bill Of Lading

    An agreement between an exporter and a carrier regarding property ...
  2. Bill Of Lading

    A legal document between the shipper of a particular good and ...
  3. Lockbox Banking

    A service provided by banks to companies for the receipt of payment ...
  4. Delivered Duty Paid - DDP

    A transaction in which the seller must pay for all of the costs ...
  5. Bill Of Sale

    A document that details in writing a sale of goods or transfer ...
  6. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
Related Articles
  1. What are Business Ethics?
    Investing

    What are Business Ethics?

  2. What is Globalization?
    Investing

    What is Globalization?

  3. How a Monopoly Works
    Economics

    How a Monopoly Works

  4. Using Appreciative Inquiry To Solve ...
    Investing Basics

    Using Appreciative Inquiry To Solve ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center