Cash on delivery, frequently shortened to COD, represents traditional, trust-based payment method for distance shopping. Buyer orders product online but pays zero money upfront. Payment happens only when courier physically arrives with package at front door. Despite name, modern couriers usually accept both physical paper money and credit cards via portable terminals during handover.

This method offers ultimate peace of mind for cautious shoppers. People sometimes worry about internet fraud, broken items, or packages disappearing into thin air. Paying only when holding physical box eliminates financial risk completely. If product never arrives, customer loses nothing. It makes online shopping accessible to folks who dislike sharing card details over internet.

For online stores, offering this payment alternative builds immense trust and attracts hesitant buyers. However, businesses must handle higher operational risks, because buyers sometimes change their minds and reject packages upon arrival. Even with that downside, providing this option remains powerful strategy to boost orders in markets where traditional payment methods are preferred.