Cash on delivery: what is it? Advantages and disadvantages

What does the term “cash on delivery” mean?

Cash on delivery is an amount paid by the addressee of a postal item in favor of the addressee (sender of the parcel).

This form of interaction between the sender and the recipient of the item has a long history. It is still used by the largest online stores in the world. The process consists of the following steps:

  1. The sender sends the parcel.
  2. The parcel arrives at the post office.
  3. The recipient pays the cost of the parcel.
  4. The post office issues the item to the recipient.
  5. Money for the parcel is transferred to the sender.

Before using bank cards when paying for goods in an online store, cash on delivery was the only form of payment between the seller and the buyer. And now this practice is used quite widely. The service was first introduced by Russian Post. Now it turns out to be the majority of shipping companies, as it involves fairly convenient interaction between the seller and the buyer.

How to send a parcel by cash on delivery.

The procedure for sending goods by cash on delivery is very simple. To do this, you need to bring the packaged goods to the post office and provide the following information to the post office employee.

  • Last name, first name and patronymic of the recipient;
  • The address of the post office where the goods need to be delivered. (Index, department number);
  • Recipient's phone number;
  • Specify the amount of return shipping (Post cost.);
  • Specify who will pay for the delivery itself (optional, depends on the postal service);
  • Provide your installation details;
  • Provide your phone number.

It should be noted that depending on a particular mail service, the above steps may differ, but in general the procedure is approximately the same.

After the details are filled out and the parcel has been accepted for shipment, the seller is given a waybill with a unique number, with which you can track the movement of the parcel. This number is usually provided to the buyer so that he knows approximately the date of arrival of the parcel at his post office.

How goods are delivered with cash on delivery

Payment by credit card may not be available to the buyer. Not all people have debit or credit cards at their disposal. Also, not all retail outlets use this payment option for goods. Therefore, in some cases, the only available way to purchase goods is cash on delivery. Often, one store provides several payment options, but the customer may have no choice other than one way to make a purchase.

Delivery of goods varies in terms of time. This parameter depends on the rules of service of the carrier company, as well as on the region in which the buyer is actually located. The goods are delivered to their destination and stored at the point of issue for a certain number of days.

Russian Post has a maximum storage period for postal items of 15 days. During this period, the buyer must come to the branch, pay cash on delivery, and receive the parcel. If he does not do this, the product is sent back to the online store.

Possible problems

Before sending the goods, it is recommended to double-check the correctness of the specified details of the recipient and sender. Despite the fact that before sending the details are additionally checked by an employee of the post office, it is precisely because of their incorrect indication that sellers often have problems quickly receiving money for cash on delivery.

Also, often senders of goods are faced with the impossibility of tracking the route of the parcel in order to control the timing of its arrival to the addressee and calculate the duration of receiving money for the sent goods. This problem is often associated with incorrectly entering the track number or incorrect operation of the Russian Post website.

If the addressee does not come to the post office to pick up the parcel within 30 days, it will be automatically sent back and no funds will be sent for the attached payment. Considering this fact, it is recommended to cooperate only with reliable and verified buyers.

If, after receiving the parcel by the addressee, the sender does not receive a notification of the arrival of the money transfer, you should contact the post office with a request to verify the receipt of funds.

If the sender is sure that the recipient paid for the goods, but the money was never sent to him by mail, he will need to leave a statement about the search for funds. To confirm that the recipient has picked up the parcel and paid the assigned payment, it is recommended to contact the recipient with a request to send a photo of the payment receipt. This will speed up the process of finding money. If Russian Post continues to ignore the client’s request to pay the prescribed cost, then the only way out in this situation will be to go to court.

What determines the amount of cash on delivery?

The cash on delivery amount is usually equal to the cost of the purchased product. Such parcels are called declared value shipments. The shipping cost is indicated by the seller (sender). Large online stores incur fees for the services of postal operators. This is as convenient as possible for the customers themselves. In fact, these costs are often included in the price of the product and go unnoticed by customers.

In some cases, a fee for storing the parcel is added to the cash on delivery amount - if the client does not show up to receive the shipment within a certain time, the next few days of storing the parcel will be charged. If the recipient does not take any action during or following days, the parcel is sent back to the online store.

How can a buyer protect himself?

If the goods arrived cash on delivery, this does not mean that the buyer found an honest seller. Inside the parcel there may be bricks, sawdust and other props. With minimal suspicions (the weight of the parcel differs from that indicated, there are dents and scratches on the box), the buyer has the legal right to open the parcel and see its contents.

For this, postal employees draw up a report in Form 51-B. If instead of the ordered product there is something else inside the parcel, the recipient has the right to refuse payment. Then you can write a complaint to the store.

Before ordering goods by cash on delivery, you must carefully study the online store’s website and reviews. Good companies that value their reputation will not send low-quality goods. And in case of any problems (for example, a product with a manufacturing defect), they will replace the product. In some cases, a public offer is important, which stipulates the actions of the buyer and seller in cases of refusal to receive, etc.

In general, one of the most effective ways to protect yourself from fraudulent parcels is to ask the seller and Russian Post to make an inventory of the attachment before sending it. This will allow you to open the parcel before purchasing and check its contents. We discussed this method in detail in this article.

Pros and cons of cash on delivery

This form of interaction between the recipient and the sender is extremely popular, but not always convenient and profitable. Some online stores cooperate with customers only in this way, leaving the latter no choice.

Benefits for the recipient

A parcel with cash on delivery provides one serious advantage for the recipient: he receives a guarantee that the online store will not deceive him, and that after payment the parcel will not be lost along the way. It often happens that after paying for goods with a bank card, the client is faced with the fact that the seller significantly violates the deadlines or refuses to fulfill his obligations to send the goods. Often the buyer is unable to correct something, and he remains outright deceived.

Payment for the parcel by post office by the recipient negates this and other risks. The buyer pays the cost of the shipment only after receiving a notification from the online store that the parcel can be picked up. In this case, deception is practically excluded.

Also a big plus is the possibility of refusing a purchase: for example, the client found the same product at a lower price, or the need for purchase has disappeared. In this case, it is enough to confirm the refusal in writing, or not take any action to obtain it.

Disadvantages for the recipient

Payment by cash on delivery, in addition to its advantages, also provides some disadvantages for the recipient. The main one is the impossibility of opening the parcel before payment. This quite serious inconvenience occurs when receiving a parcel through Russian Post.

Sending a parcel by cash on delivery via Russian Post is inconvenient for the recipient because he must first decide whether to receive the parcel or not. It is prohibited to open the shipment before payment. The exception is the presence of an inventory of attachments. Therefore, you may experience:

  1. Damage to goods.
  2. Violation of the integrity of the purchase - mechanical damage, breakdowns, complete loss of the goods.
  3. Error with the name of the product - the online store may mistakenly send a different product.

Also, some so-called parcel terminals - special devices in which parcels are placed for pickup - do not work with cash on delivery. Such devices are usually installed in large retail outlets so that the client can choose the nearest pickup point.

On the touch panel it is enough to enter a personal code, after which one of the cells opens, in which there is a postage paid in advance. In large cities of Russia, such devices have already become widespread.

Pros for the online store (sender)

Sending goods by cash on delivery for an online store offers one significant advantage: the store increases trust among potential buyers. A client who visits the store’s website sees that the goods are paid only after receipt, which means that the likelihood of fraud is minimal.

For this reason, the largest sellers of goods on the Internet make cash on delivery one of their purchasing methods. This form of purchase is even more relevant for small outlets that are just beginning to gain the trust of customers.

Cons for an online store (sender)

Sending a parcel by cash on delivery for an online store may also involve significant disadvantages. First of all, we are talking about the possible refusal of the buyer to receive the postal item: no receipt - no purchase. As a result of this, the seller not only does not receive the expected profit, but also incurs losses in the form of payment for the services of the postal operator.

The second disadvantage is the high cost of services of some postal operators. Not every shipping cost can be taken into account in the price of the product, and in these cases, sellers have to overpay for services, with no guarantee that the client will ultimately agree to receive the goods at the post office.

about the author

Anatoly Darchiev - higher education in economics with a specialty in “Finance and Credit” and higher education in law in the direction of “Criminal Law and Criminology” at the Russian State Social University (RGSU). Worked for more than 7 years at Sberbank of Russia and Credit Europe Bank. He is a financial advisor to large financial and consulting organizations. Engaged in improving the financial literacy of visitors to the Brobank service. Analyst and banking expert. [email protected]

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Is cash on delivery used abroad?

Many countries have been using this service since the 19th century. Mostly residents of European countries sent documentation and some goods this way.

The service was called forwarding correspondence on demand. In addition, there was another service very similar to cash on delivery - postal guarantee. This is a special service that provided the opportunity to pay bills through Russian Post. In addition, it was possible to make a contribution and also collect debts. This was very popular.

In addition, in the 19th century, 50 million letters and parcels were sorted in a year.

Comments: 2

Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:

Author of the article Anatoly Darchiev

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

  1. Vladimir
    04/12/2021 at 14:13 I pay with a Tinkof credit card, and if the code at the post office is 4814, then they charge me interest, how can I change the code at the post office so that it goes as a payment and not as a transfer?
    Reply ↓ Olga Pikhotskaya
    04/12/2021 at 14:28

    Vladimir, good afternoon. 4814 (“Telecommunications Services”) is an MCC code that is used to classify merchants by type of activity. This code is assigned by the bank to the outlet based on the key area of ​​its activity. It cannot be changed. To avoid interest charges, pay for this service with cash or a debit card.

    Reply ↓

How to find out that money is already available for withdrawal

Usually, when the money comes back to the sender, he receives a standard notification from the post office, but they can also notify the contact phone number if it was indicated when filling out the form. A regular notice is placed in the mailbox, indicating the addressee's full name, his address and the number of the branch with the address where the money is available for collection. But you should indicate a contact phone number so as not to check your mailbox and find out about the receipt of the transfer as soon as it is available for issue.

READ Will it be possible to receive a parcel if the sender made a mistake in the last name?

It is not difficult to track cash on delivery for a parcel, but only if there is a receipt number from the recipient of the cargo. Then the client can use the standard tool for searching postal items, available on the Russian Post website.

Advantages and disadvantages

The main and only advantage of cash on delivery is payment upon receipt at the branch. There are more disadvantages.

For the recipient:

  • prohibition of opening and inspection (except when there is an inventory);
  • high commission payments;
  • long delivery time.

For the sender, the overlay scheme has the following disadvantages:

  • high price;
  • there is a danger that the buyer will not pick up the goods (in this case, you will have to pay a double delivery rate).

This option is used by buyers who do not trust the seller and are accustomed to paying upon receipt.

Is it possible to get a refund for a parcel paid with cash on delivery?

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Credit fraud Other scams:

  • New Year
  • Scam when selling on the Avito website

Add your purchases on this page. So, quite often, the cause of a conflict arises when a buyer tries to return money for goods received by mail with cash on delivery. In this article we will answer the following questions: what rights do the seller and the buyer have when it comes to returning money for goods by cash on delivery? Can the seller return the money? and what consequences can I expect for both? The content of the article:

  • Concept: features and risks
  • Refusal: reasons, features of the procedure
  • Refund

Concept: features and risks Cash on delivery is a remote method of purchasing goods (via the Internet), in which the buyer pays for it only after receiving it at the post office/delivery by courier. In this situation, the main risks fall on the shoulders of the seller, since by sending the goods he is actually left without paying for it.

Author How Simple! With the proliferation of stores selling through catalogs and Internet sites, cash on delivery has become an increasingly popular service at the post office. It makes it possible to pay for the parcel not in advance, but right before receipt. But if you purchased an item that you want to return, you can get your money back, just as if you were making a purchase in a regular store.

Articles on the topic: Instructions 1 Check whether you have the right to return a product you don’t like. This is possible if the product was of poor quality. Another reason may be that the item does not suit you in color, size or style. But keep in mind that some distance selling stores take advantage of the opportunity given by the state and reduce the time frame for returning high-quality goods that are not suitable for customers to one week instead of two, as is established for regular stores.

Return of goods by cash on delivery by mail

How to return money for goods by cash on delivery?

The content of the article

Returning a parcel after opening The recipient can open the box and check the quality of the arrived goods only after paying for the parcel. However, if upon receipt, based on any external signs, a citizen determines a possible defect or discrepancy, then together with the post office employees a report is drawn up and the parcel is opened. In this case, payment for the order is not charged to the recipient until the inspection is carried out. If, after checking, it turns out that everything is in order with the goods, then the cash on delivery amount will be charged, and the act itself will be cancelled. Attention A conscientious seller can include an inventory of the contents in the parcel and use the Russian Post service to list the contents. In this case, the parcel is also opened together with the postal worker, and payment is made after checking the contents of the parcel.

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