D-6-1- COD, cash on delivery

6-1-1- Cash on delivery: definition

Cash on delivery is a payment technique for international transactions. This technique authorizes the final goods carrier as a financial intermediary. The carrier shall deliver the goods to the importer against payment. The carrier therefore collects on behalf of its client, the exporter.

The Cash On Delivery technique aims to provide an inexpensive payment solution.

6-1-2- Cash on delivery: a risky payment technique

We do recommend the use of this technique for regular and/or small transactions. One is better served knowing the transport service provider, or freight forwarder.

This payment technique should not be used with big transactions because of the risk of having to repatriate or resell the goods in case the importer refuses to pay.

Even if the payment is made, verification is required to ensure the importer's account has the necessary funds for the exchange. This is only possible when the exchange has been made, and therefore a risk is taken. Use of an expedient payment tool such as a Swift payment, or a payment by SEPA transfer, is preferable.

6-1-3- Cash on delivery: service cost

This type of service is usually expensive, but for regular transactions, beneficial price points can be negotiated with service providers..