What does C.O.D. stand for?

In business and finance, the acronym C.O.D. stands for "cash on delivery" or "collect on delivery," according to the UPS website. C.O.D. is a method of payment where the buyer makes a payment for a product when the product is shipped.

Cash on delivery transactions are the norm when it comes to shipping payments, suggests UPS. In this type of transaction, if the buyer fails to pay when an item is shipped, the item will be returned back to the seller. This type of payment benefits the seller because they know they are receiving their payment when they ship the product, and it also benefits the buyer because they know their product is shipped to them when they make their transaction.