COD Definition
Stands for Cash On Delivery.
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.