Cash on delivery is a mode of payment in which the vendor issues a buyer the cash before delivering goods or services. Small businesses usually opt for a COD payment gateway and you might also get coupons for COD payments. A more popular variant is eCommerce and some online transactions, where vendors offer to ship their products to buyers that make payments through digital means.
Cash on Delivery for Online Purchases
In most cases, it can be said that COD services are safer than credit card payments because when you pay cash for your purchase, there's no third party involved in the transaction and the risk of fraud is less likely instead of making an electronic payment over internet banking or making use of credit cards.
The following are some of the reasons why cash on delivery is safer than using credit cards:
1. There are no additional charges
Cash payments do not cost anything to the buyer and this is a great reason why it's safe and secure for consumers to make purchases. Purchasing goods with cash eliminates the transaction fees that buyers are charged by banks when making online purchases. It's also important to note that cash payments don't incur any type of fees that add up to the total charge that buyers pay to increase their bills. A buyer who purchases things with cash can also avoid all the hidden charges when they pay in full or in monthly installments for cheap cash on delivery services.
2. No online payment frauds
When you're making cash payments, you eliminate the risks of fraud because there are no credit cards at stake. This is particularly beneficial to those people who often fall victims to unscrupulous scammers. Plus, paying with cash eliminates the chances of personal information leakages
3. No chance of credit card overcharge
If you run the risk of having your credit card overcharged or purchasing an item that doesn't exist, your payment may be disputed and canceled by your bank. However, when it comes to cash payments, the only thing at stake is the cash that you've purchased goods or services with and there's no cancellation involved in such transactions.
4. More economical payment method
Buyers can save more money when paying with cash because you won't have to pay any bank charges. Banks are often known to charge their buyers for processing fees when they make online transactions. These charges are usually hidden, too, so it's harder to notice the amount that buyers have paid in fees.
5. More reliable due to human touch
Cash payments are made in person and it is more secure than making credit card payments through the internet. Credit card payments are usually made through the internet and you're sending your credit card details through your webcam to the vendor. Your personal information is also at stake in such transactions, which some buyers can become more cautious when making purchases.
Setting up a secure online payment option is an expensive deal so most stores offer vouchers for online shopping via COD because they want to build trust and clientele first.
6. Instant payment with no banking transactions
The most important reason why cash payments are a safer mode of payment is that buyers can't get cheated or swindled. If you're buying an item with cash, you don't have access to any type of bank account information since it’s just cash that you're paying for goods or services. This is particularly beneficial to buyers who want to protect their identity from being stolen by scammers that use their stolen information when making electronic transactions online.
Cash payments are more secure when it comes to purchasing items over the internet. Internet shopping is different from normal purchases. Here, you have to look for ways to save money as you can know what is flash sale in eCommerce and how you can benefit from them. For instance, if you have paid for an item that's broken or doesn't work, you only have to go back to the store and get a refund or exchange for another item. However, if you've made an online payment using a credit card, you'll also risk losing your money because it's hard to get a refund through your bank and stores do not give exchanges.