Courier delivery is a method of parcel delivery, while cash on delivery (COD) is a payment method: with COD, the recipient pays for the goods upon delivery, and the courier transfers the money to the sender. These delivery methods are not mutually exclusive. Courier parcels can be shipped with or without cash on delivery, and cash on delivery can be added to a postal parcel or a parcel sent via a parcel terminal.
To sum it up
- Courier delivery determines who and how will deliver the parcel: a courier company, usually to the specified address.
- Cash on delivery — This is an additional service. The courier or post office collects the specified amount from the recipient and transfers it to the sender.
- With standard delivery the goods paid in advance , and when paying in cash upon delivery, the recipient makes the payment upon receipt .
- The courier service charges additional fee for cash on delivery, so stores often include it in the delivery cost.
Courier delivery – what is it?
Courier delivery A parcel or document delivered by a courier company is typically sent directly to the recipient's address: home, work, or another location of their choosing. The parcel is assigned a tracking number, allowing both parties to track its progress, and receipt is confirmed with a signature or code.
The customer, usually the sender, pays for shipping costs themselves. In an online store, the buyer pays for the product and shipping online when placing the order, and the store sends the prepaid package. The courier does not collect anything from the recipient.
Cash on delivery – how does it work?
Payment in cash upon delivery (COD) is a service added by the sender to the shipment. The courier delivers the parcel only after the recipient has paid the specified amount, and then transfers the money to the sender. It works like this:
- The sender orders delivery with payment in cash upon receipt, indicating the amount to be paid and the account number.
- The courier, postman or parcel terminal will release the parcel only after payment has been received.
- The recipient pays for the purchase in cash or by bank transfer. Available payment methods depend on the courier service and the delivery location.
- The carrier transfers the received funds to the sender within the timeframe specified in its terms. For example, GLS states that funds are received within 7 business days of delivery.
Almost all major Polish postal services offer cash on delivery (COD). Each sets its own limits and rates, so it's worth checking the current price list before sending. For example, GLS states that the maximum amount for cash on delivery is 6,000 zlotys per item, and that this service applies only to domestic shipments.
Courier delivery and cash on delivery are the most important differences.
So the difference is not in who delivers the parcel, but in time and method of payment . With standard courier delivery, payment is transferred to the seller before shipment. With cash on delivery, the seller waits for payment until the package is received and the courier service processes the payment.
| Characteristic | Courier delivery (prepayment) | Courier delivery with cash on delivery. |
|---|---|---|
| When the recipient pays for the goods | Before sending, for example by bank transfer or through the BLIK system in the store. | Upon receipt of the parcel |
| Who pays the carrier? | Sender (client) | The sender (client) who can add cost to the order. |
| Additional fee | Flaw | The cost of the cash on delivery service is determined according to the carrier's price list. |
| When the seller receives the money | Immediately after payment | After delivery and payment of the order by the carrier |
| Buyer's risk | He pays for the goods before receiving them. | He pays only when the parcel reaches him. |
| Seller's risk | Not that much, because the order has been paid for. | The recipient does not have the right to pick up the parcel in person, and the costs of delivery and return remain with the sender. |
| Where possible | Courier services, post offices, vending machines and pick-up points. | Courier service, mail, vending machines and pick-up points (depending on the carrier) |
Can I check the parcel before paying upon receipt?
This is a common misconception. Cash on delivery does not automatically give you the right to open the package Before payment. Typically, you pay for delivery, sign the receipt, and only then open the package. Some courier services offer a separate inspection service upon delivery, but this is paid for by the sender. Without this service, the courier is not obligated to wait for you to inspect the item.
Cash on delivery primarily protects you from situations where you pay for an order and the package never arrives. It doesn't guarantee that the package contains exactly what you ordered. If the package is visibly damaged, you can ask the courier to draw up a damage report. When purchasing online, consumers generally also have the right to withdraw from the contract, regardless of the payment method.
When is it better to choose cash on delivery or prepayment?
Cash on delivery makes sense, When you're buying from an unknown seller and don't want to pay upfront, don't have access to online payments, or prefer to pay only upon receipt of the package. In such cases, you need to consider higher shipping costs and the fact that someone must be present at the delivery to pay.
Prepayment is preferable, If you're buying from a trusted store and want to reduce shipping costs and speed up order processing, many stores ship paid orders immediately and sometimes request order confirmation if they accept cash on delivery.
For sellers Cash on delivery means additional fees, payment delays, and the risk of unclaimed parcels, which are typically returned to the sender. This, in turn, may attract customers who are unwilling to pay upfront.
Frequently Asked Questions (FAQ)
Is delivery with payment on delivery considered a courier service?
It's possible, but not required. Cash on delivery is an optional service that can be added to a courier or postal parcel, or to a parcel terminal. The term "cash on delivery" simply means that the recipient pays for the delivery upon receipt.
Who pays for cash delivery?
The sender pays the carrier both shipping costs and cash upon delivery. The recipient pays the amount specified by the sender upon delivery, which typically equals the cost of the goods plus shipping costs.
Is it possible to pay by card or in cash upon delivery?
Often, yes. Many courier services accept card payments or BLIK, and parcel terminals accept cashless payments. Available payment methods vary by carrier, so it's best to check the delivery notification for details.
What happens if I don't pick up my parcel with cash on delivery?
After the designated pickup period expires, the parcel is returned to the sender. The sender pays the shipping costs and, typically, the return shipping. This results in losses for the store, so some retailers limit the delivery of parcels to customers who have not previously picked them up.
Can I open a Cash on Delivery package before payment is made?
Generally, no. You first pay for delivery and sign the receipt. Inspection of the contents in the courier's presence is only possible if the carrier provides this service and the sender has paid for it.
See also
- What is the difference between priority mail and registered mail?
- What is the difference between a debit card and a credit card?
- What is the difference between Visa and Mastercard?
- What is the difference between a credit and a loan?