Is pay on delivery and cash on delivery same?

Is pay on delivery and cash on delivery same?

Cash on delivery

Cash on delivery: shop online and pay in cashCash on delivery is one of the most common payment methods used by most e-commerce sites worldwide.  It is an easy and secure system to close a cash transaction upon receipt of an order.

One of the main limitations of customers who decide to opt for e-commerce is that they are wary of entering their personal information, especially credit or debit card details. However, with cash on delivery, the buyer guarantees the authenticity and good condition of the package before paying for it.

The cash must contemplate the VAT (Value Added Tax), the cost of the product and the amount for delivery to destination that will be stipulated in the page at the moment of confirming the order. As for the delivery, there are some locations or cities which are difficult to access; therefore, if when entering the address an error message appears, this means that the company probably had problems in reaching those areas.

Online stores cash on delivery payment

In a previous opportunity, we had talked about cash on delivery, the payment of the shipment when it is in the recipient’s possession. Now, we will review a system similar to the one mentioned, the cash on delivery, analyzing the differences that exist between them. Next, we will provide you with complete information about this type of service.

We must clarify that many transport companies offer this payment method. It consists of paying the total value of the shipment to the person who delivers it. In other words, the recipient pays for the purchase (item and shipping) when he/she receives it. We can remember something similar to cash on delivery, only that here nothing has been paid to the sender of the shipment.

Read more  How often can VAT be claimed back?

To simplify the subject a little, let’s analyze the following example. The sender has a sale of Chinese cell phones, he manages the cash on delivery service. The buyer enters a virtual store and purchases a cell phone through this shipping method. The cell phone is sent to the buyer who will only pay the total value when the item is in his hands.

Cash on delivery or cash on delivery

With online shopping the same thing happens, the customer places the order in the store with cash on delivery, the store prepares and sends the package and when the carrier arrives at the customer’s home, the customer has to pay the operator.

You may find that one company is good for cash on delivery within your province or within a radius more or less close to your business, while other companies are good for international, European or island cash on delivery.

The customer pays when he receives the package at his own home or assigned place of delivery. Or he can pick it up himself at the carrier’s offices. In either case, he will only pay when he has the package in his possession.

There are fees for this cash on delivery method, plus a commission on the amount to be charged by the delivery person. And there is also usually a limit on the maximum amount of money to be charged by the delivery person.

Sending a C.O.D. parcel in 2022 does not have to be too complicated. It is only necessary to take into account a series of characteristics of this type of shipments so that everything goes perfect.

Read more  How long does a disciplinary stay on your record UK?

Cash on delivery example

As we mentioned, cash on delivery is one of the payment methods that we can find available in online stores, and in fact it is considered a safer form of payment, this is because there is no economic charge until the product is received at home.

This payment method is not so popular in Mexico, but in other countries it is rated by users as a reliable and safe option, so you can consider including it in your ecommerce, but before doing so you must be very clear about how it works:

It is important that you keep in mind that in case the payment is made in cash, most parcel services charge a commission for the cost of moving cash, having to deposit it in your bank account along with all the cash on delivery of the day and then having to make each online store a bank transfer for the amount collected. This commission is usually 2 or 3% of the volume handled.

For a transaction with this payment method to be carried out, it is important that the parties involved at the time of delivery, i.e. both the customer and the parcel service, meet certain requirements that are listed below:

Read more  Is it safe to give payment over the phone?