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UPS & FedEx Collect on Delivery (C.O.D)

By Last updated on: March 26, 2024

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.

Estimated reading time: 3 minutes

Shippers can request the carrier accept only a money order, cashier’s check, or official bank check for the amount of the C.O.D. package. They can also receive a business or personal check if you do not specify this option. 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 2024

FedEx Collect On Delivery 2024

However, FedEx collect on delivery is not available for FedEx Ground Economy. FedEx Ground’s collect-on-delivery service for packages from the U.S. to Canada was retired on January 29, 2024.

UPS Collect on Delivery C.O.D. 2024

UPS Collect On Delivery 2024

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 of 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 summate 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. 

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur, and other publications discussing parcel auditing, shipping, e-commerce, and more. Learn more at or call (800) 441-8085 for more information.

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