what is a cod payment COD (Cash on Delivery) is a payment method where customers pay for goods at the time of delivery, rather than paying upfront when placing an order. This method is commonly used in countries where credit card usage is limited, or where consumers prefer not to pay online. With COD, the carrier collects the payment from the customer upon delivery, and the seller receives the payment once the goods are successfully delivered. COD provides security for buyers who may not want to make pre-payments online.