A COD or a Collect On Delivery is mostly used by senders who need a particular amount to be picked by the addressee on their behalf. Under this service, the sender bears the postage and mailing costs. The maximum collectible amount cannot exceed $1000. COD mails cannot be deposited at any local postbox or mailboxes. They are not supposed to be handed over to carriers unless it’s not a rural carrier.
Collect on Delivery:
Collect On Delivery is a helping hand for a mailer in payment collection. Upon delivery of the shipment, the receiver needs to make the payment, and that’s how you do not have to go through the waiting period after the goods are delivered. COD enables you to collect money for postage, fees, goodies, or any other item that a sender might want to be picked up.
If the payment is made via check, USPS forwards it to you. And in case the fee is in the cash mode, you will be sent a USPS money order equivalent to the value of the amount.
Every COD item has a specific identification number so that accurate delivery can be ensured. If not specified, it becomes the mailer’s duty to pay for any return postage.
COD mails need to be deposited at the post office or in the hands of a rural carrier.
How is Collect on Delivery (COD) Used?
Collect On Delivery allows one to send the merchandise for which the receiver is liable to pay. As such, the payment is supposed to be made by the recipient, and consequently, the amount is transferred to the mailer via money order or check. COD service allows a sender to obtain a mailing receipt. You may also purchase a return receipt for a delivery record.
You need to avail the USPS form 3816 from the local post office and attach it to the correct filled format to the mail parcel.
Make sure you do not drop it in just any mailbox. Sent it through a rural carrier or carry it personally to the post office.
The shipment that the mailer is sending is supposed to be ordered by the addressee in the first place. Only then, the entire transaction will be initiated. Another thing to be taken care of is that the shipment should not amount to more than a $1000. Even if a Registered Mail is purchased with COD, the carrier is entitled to collect only a maximum of $1000 also if the insurable amount may rise to any amount.
What Does a COD Form Look Like?
Following is a rough replication of the image of a COD form.
What are the Mail-Classes Eligible for COD?
Following mail-classes extend the COD service:-
• Parcel Select
USPS insurance facility is not available in combination with COD because this shipment is by default insured up to $1000.