Collect on delivery
Reimbursement | Nachnahme | COD
Collect on delivery (COD), sometimes cash collect on delivery or cash on demand is the sale of goods, delivered by as forwarding company like Condor where payment is made on delivery of the goods to the forwarder rather than in advance. The forwarder is collection the contracted amount from the consignee before delivering. If the goods are not paid for, they are returned to the retailer.
After collecting the goods, the forwader is trsferring the amount right to the seller or shipper of the goods.
That service is very popular for small amounts, where banking traction are complicated and time consuming. Furthermore it protects the consignee and the seller as the service is a real “cash aginst documents or cash against goods.
The problem of restricted payment transactions can be solved with collect on delivery terms.
Necessary information or documents:
- Invoice: The invoice amount must correspond to the transaction value of the goods.
- Information on the consignee and payer: The identity of the consignee must be clearly identifiable (contact person with contact details).
- Instructions on what to do with the goods in the event of non-payment.
- Instruction when the amount is to be collected (before or after customs clearance or before or after delivery, …)
- Instruction whether to collect the COD fee from the recipient or from the client.
- Bank details oft the seller for crediting the COD amount (IBAN and BIC)