Collect on delivery is available with UPS and FedEx small parcel shipping services. UPS & FedEx C.O.D. service allows you to sell to customers without extending credit or requiring prepayment. C.O.D. service is available on an individual package basis for most service levels. FedEx and UPS deliver the C.O.D. package and collect the requested amount from the consignee.
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Shippers can request that the carrier accept only a money order, cashier’s check, or official bank check for the amount of the C.O.D. package. If you do not specify this option, they can also receive a business or personal check. In the U.S. and Puerto Rico, the carriers will not accept cash in any amount for a COD package.
FedEx Collect on Delivery C.O.D. Fees 2025
FedEx does not offer C.O.D. service for FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day A.M., FedEx 2Day, FedEx Express Saver, FedEx 1Day Freight, FedEx 2Day Freight, FedEx 3Day Freight, FedEx Ground, or FedEx Home Delivery packages. A shipment marked “C.O.D.” will be returned, and all related charges will be billed to the sender.
UPS Collect on Delivery C.O.D. 2025
Collect on Delivery (C.O.D.) service is not available for UPS Express Critical or international services, UPS Worldwide Express Freight® Midday, or UPS Worldwide Express Freight services, and it is also not available when using a UPS 3 Day Select or a UPS Ground shipping document.
C.O.D. shipping requires enrollment in one of the four Enhanced C.O.D. services from UPS Capital. For 2025, the UPS C.O.D. fee is $21.00 per package. If payment cannot be collected after three attempts, the package will be returned.
Why Use C.O.D.?
C.O.D. minimizes shipper risk when collecting payment for goods. The delivery driver collects payments, and packages are delivered only when payment is collected.
FedEx and UPS carry many risks while trying to deliver and collect payments on a company’s behalf. The carrier is liable for all costs if the package is lost or stolen. Furthermore, if a collected check bounces due to insufficient funds, FedEx and UPS must spend time and resources to re-collect the funds the customer owes.
How to lower FedEx & UPS COD fees
To lower the cost of your collect on delivery fees, it is important to quantify how much your company spends on COD each year. Shipment reporting can identify all collect-on-delivery charges and accurately sum up the yearly charges. Once known, negotiate with FedEx and UPS during contract negotiation. Shippers can achieve a 25 to 75% discount on COD fees. Finally, contact Refund Retriever if you need help with proper contract negotiation. Our contract experts can help achieve best-in-class rates and lower your shipping costs.
