Cash on delivery - Definition and Overview

Cash on delivery or COD is a financial transaction where the payment of products and/or services received is done at the time of actual delivery rather than paid for in advance. The term is mainly applied to products purchased from a third party, as the normal Western convention for services is that payment is not made until the services have been performed.

The concept of cash in this case is often blurred, because most companies also accept checks, credit cards or debit cards.