Explaining The Meaning Of "c.o.d."

There are several payment options available for companies shipping packages in the Chicago metropolitan area. Sometimes, sellers allow for shipping company drivers to accept payments that include checks, money orders, and credit and debit cards and, in many situations, even accept online payments through companies like Pay Pal or Money Broker. Often, companies will ship to customers accepting a C.O.D. (Cash on Delivery) payment. In today's world of high-needed security, Cash on Delivery does not usually translate literally as "cash." In fact, selling companies use a Chicago courier service that is authorized to have drivers accept either a money order or certified check as a "good as cash" payment for the delivered item. Terms of sale between a seller and buyer should always dictate the exact method of payment accepted for a "cash" transaction. Also, it is important to hire a delivery company that provides payment receipt services. Some do not, but most Chicago courier companies do - for a small fee.

Sometimes sellers are faced with clients who only accept "Collect on Delivery" shipments that are the same as a C.O.D. shipment. This term is typically used for larger commercial cargo shipments. The receiving company has made arrangements with the seller to pay for the goods and the cost of the shipment upon delivery, inspection and acceptance of the goods. The shipping company agrees to the delivery conditions and, in effect, uses the cargo as collateral in the event the receiver fails to make an acceptable payment.

As is the case with almost every type of cash payment, only suitable "same as cash" payment methods are acceptable for Collect on Delivery shipments also. In any event, the delivery company sends payment to the seller minus any handling and delivery fees that need to be deducted. Many Chicago delivery companies require delivery fees be paid upfront or on an account but will accept cash payments acting as the agent for the seller when delivering the goods or package.

C.O.D. payments are essential in many situations where the buyer has no credit account with the seller. The only other option is to make pre-shipping payment arrangements that may stall the delivery of needed goods by a Chicago courier service until payments clear banks or other institutions. Also, some companies practice incredibly strict money-management activities not wishing to part with company funds until the very last moment, which could be just before a scheduled delivery when a certified check or money order can be obtained.