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If you choose cash on delivery as your payment method in online shops, you only have to pay for the goods when you receive them. We explain exactly how this works here.
How does cash on delivery work? The process
Cash on delivery as a payment method means that the buyer only pays for the goods upon delivery – i.e., directly to the delivery person at the front door. The invoice amount plus a cash on delivery fee is paid before the shipment is handed over. If the recipient is not at home, the shipment is often deposited at a pickup point or another delivery attempt is made.
- If you select cash on delivery as your payment method at the checkout of an online shop, you do not have to pay anything up front.
- The sender, i.e., the online shop or a sub-contractor, determines an amount that the recipient must pay upon receipt of the goods.
- As the recipient, you pay for the goods directly to the delivery person in cash. Since delivery personnel do not always have sufficient change with them, you should have the exact amount ready if possible.
- If you are not at home when the delivery is made, all shipping companies except DHL will inform you of a new delivery attempt, usually on the next working day. If the goods were shipped with DHL, you can pay for your shipment at a post office (cash or EC card) and pick it up.
- The shipping company forwards the money to the sender after delivery.
- Cash on delivery works as follows: The recipient pays the specified amount directly to the parcel carrier upon delivery. Only after payment will they receive the shipment. The delivery person is responsible for both delivery and collection of the money for the sender.
- If the recipient is not at home, the package will either be delivered again or left at a branch for collection. There are usually additional fees for cash on delivery.
Sending packages cash on delivery – how does it work?
Even as a private individual, you can send parcels or letters cash on delivery. As the buyer, you must pay for the goods upon receipt and directly to the delivery person, usually in cash, but often also by debit card, with the amount being determined in advance by the sender.
- You can obtain a cash on delivery stamp and the corresponding collection receipt at any post office for €2.40 (letters) or €4.95 (parcels).
- Fill out both at home and stick the stamp on the letter or parcel. Hand in the collection receipt at a post office, and the money will be transferred to the specified account later.
- You must also affix the necessary postage to the item. You can then send the item as usual.
- The delivery person will collect the money upon delivery. After deducting a fee, he or she will forward the payment to the sender.
The advantages and disadvantages of cash on delivery as a payment method
Cash on delivery is a popular payment method for online purchases, offering both advantages and disadvantages.
- Flexibility of payment: Unlike other payment methods such as credit card or prepayment, where the money must be paid in advance, cash on delivery allows customers to inspect the goods before paying for them. This offers a higher level of security and trust for the customer.
- Personal delivery: With cash on delivery, the goods are handed over to the recipient in person. This means that the shipment is usually only handed over to the recipient themselves. This personal delivery offers additional security, especially for sensitive documents or valuable goods.
- Cash payment or alternative payment methods:& nbsp;With cash on delivery, the customer can either pay for the goods in cash or use alternative payment methods such as a debit card. This makes cash on delivery a suitable option for those who do not have a credit card or online payment options.
- Additional costs: A significant disadvantage of cash on delivery is the additional costs. Shipping companies usually charge a cash on delivery fee, which is passed on to the customer. These additional costs should be taken into account when choosing a payment method.
- Limited availability: Cash on delivery requires the recipient to be present in person. This means that mailbox deliveries or substitute deliveries to neighbors are usually not possible. The recipient must therefore ensure that they are available to receive the goods at the time of delivery.
- Potential risk of fraud: In some cases, dubious suppliers attempt to send cash on delivery shipments to random individuals in the hope that they will pay the cash on delivery amount. This can lead to financial losses if the recipient pays for something they did not order. To avoid such fraud attempts, it is important to check whether you have placed an order before making payment.
Tips for private individuals
Private individuals who want to send cash on delivery shipments should note the following tips and information:
- Procedure for sending cash on delivery items at post offices: At the post office, you will receive a cash on delivery label and a collection receipt, which you must fill out. The cash on delivery stamp is affixed to the parcel or letter, and the collection receipt remains at the post office. The address and the cash on delivery amount (which is paid by the recipient) must be specified. The shipment must also be franked with the necessary postage.
- Cash on delivery shipments can usually be handed in at the post office. The delivery person collects the cash on delivery amount from the recipient upon delivery. To send cash on delivery shipments, you may need to register online with DHL in order to frank them.
- Costs for cash on delivery shipments: The cash on delivery fee at Deutsche Post DHL is €8.99 in addition to the normal shipping postage for parcels. For letters with cash on delivery, the cash on delivery stamp can cost around €2.40, and for parcels around €4.95. The costs are often borne by the recipient who ordered the shipment cash on delivery.
- Important information for private individuals: The recipient must be present in person at the time of delivery, as payment is made upon delivery. Delivery to the mailbox or by neighbors is not common for cash on delivery shipments. Cash on delivery shipments offer the recipient the opportunity to inspect the goods before payment.
- Caution with unexpected cash on delivery shipments: There are cases of fraud in which people are tricked into paying for shipments they did not order. Before making payment, you should check whether you are actually expecting the shipment.
- Payment to the delivery person can be made in cash or by EC card (POSTCARD) if the delivery person has the device with them. This information helps private individuals to send cash on delivery shipments correctly and securely and to estimate the costs.
