Two common billing options offered by carriers is "Collect" and "COD", or "Collect On Delivery". This article will explain the different between the two and which carriers offer these options.
The "Collect" billing option bills the receiver of the shipment for the shipping cost. This is done without requiring an account with the carrier. For example, sending a FedEx package with the "Collect" billing option, the receiver of the package will pay for the shipping cost without needing a FedEx account. The receiver will pay the shipping cost at time of delivery. Most carriers will include a billing option to bill the shipping cost to the receiver of a shipment but require an account with the carrier to do so.
The "COD", or Collect on Delivery, billing option bills the receiver of the shipment for the cost/value of the items within the package. Similar to "Collect", the "COD" billing option does not require an account number and the receiver will pay for the value of the items in the package at the time of delivery.
Summary Table
Carrier Name | Collect | COD |
UPS | No | Yes |
USPS | No | No |
FedEx | Yes | Yes |
DHL (eCommerce/Express) | Yes | Yes |