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 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
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
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.
