Collect on Delivery (COD) is a type of financial transaction in which payment for a product is collected at the actual time of delivery. Since there are now a multitude of ways to send and receive more immediate payment, COD has become a far less popular method when making purchases. However, some companies such as UPS will still ship items COD.
Take the packaged item that is to be shipped COD to the nearest UPS store. If the item is not already packaged, have the customer service representative package it for an additional cost. Make sure the item is securely packaged, as UPS does not take responsibility for damages incurred during shipment.
Ask the customer service representative for the appropriate label and form for a shipment that is to be made COD.
Fill out the COD form, making sure to include not only the address, but the amount that is to be collected upon delivery. Be aware that UPS allows up to $50,000 to be collected per package, per delivery.
Include the recipient's telephone number if the item is being shipped to a residential address. This way UPS can notify the recipient when the package is to be delivered and the exact amount that will be collected. Understand that UPS only sends items COD to the U.S. and Puerto Rico.
Pay the customer service representative for the cost of shipping and the COD service fee. For items sent COD, UPS requires an additional $10 charge.
Call the recipient and inform them exactly how much they will be expected to pay when their item arrives. Also advise the recipient how he should pay for the item. UPS accepts both personal and business checks, as well as other negotiable forms of payment. A shipper can also request that UPS collect only a cashier's check or money order at the time of payment.
Understand that UPS will attempt to deliver the package as many as three times. Know that when sending a package COD with UPS, the shipper assumes all risks related to the collection of payment.
Wait for UPS to send the payment to you. After payment has been collected by the recipient, UPS will immediately send payment to the shipper.