Payment on delivery means the buyer pays for an order when it arrives, instead of paying online first. The rider hands over the item, the buyer checks it, and then pays the rider in cash or by MoMo. It is also called cash on delivery, or COD, and it is common in Ghana because many buyers want to see the item before they part with money.
How does payment on delivery work?
- The buyer finds a product and places an order with their name, phone number and delivery address.
- They choose pay on delivery instead of paying online.
- The seller confirms the order, often with a call or a WhatsApp message.
- A rider brings the item to the address.
- The buyer inspects it and pays the amount shown on the order.
- The seller records the order as paid.
If the buyer refuses the item, no money changes hands and the seller has made a wasted trip.
Payment on delivery, cash on delivery and pay on delivery: is there a difference?
No. They all mean the same thing. "Cash on delivery" is the older phrase and is still what most people type into Google. "Pay on delivery" and "payment on delivery" are the same idea, and some sellers accept MoMo at the door too, so "cash" is not always accurate.
Why do buyers in Ghana like it?
- Trust. Many people have paid an online vendor and received nothing.
- Inspection. For clothes, wigs, phones and shoes, buyers want to check size, colour and quality.
- No online payment needed. Some buyers do not have a card or are not comfortable sending MoMo to a stranger.
What are the risks for buyers?
Paying on delivery is safer than paying first, but not risk free.
- You might pay for something you cannot fully test, such as a phone's battery life.
- A rider may not accept returns on the spot, so ask the seller about their return policy before you order.
- Some sellers add a delivery fee that is higher than you expected. Check the full price before you confirm.
What are the risks for sellers?
The main risk is a refused or failed delivery. You pay for the rider, the item sits out of stock, and you may never get the sale. If one in five orders fails, the cost of those trips eats into your profit. Our guide to cash on delivery in Ghana explains how to offer it without losing money, and how to reduce failed deliveries has a checklist.
What does it cost a seller?
It depends on the tool. On Paylead, pay-on-delivery orders cost 2% + GH₵ 1, taken from your wallet once you mark the order paid. There is no card or MoMo processing fee because you collect the money yourself. For example, a GH₵ 200 order costs GH₵ 5, so you keep GH₵ 195 before your own delivery costs. Online payments cost 4% + GH₵ 1.
When should you not use payment on delivery?
It only makes sense for physical products. Digital downloads, courses, webinars and bookings have nothing to hand over, so they should be paid for upfront. Custom or made-to-measure items are also a poor fit, because a refused order cannot be resold. For those, take a deposit first with a payment link.
How do you offer payment on delivery as a seller?
On Paylead you turn on Enable Cash on Delivery (COD) in Store Settings, under Payments. Buyers ordering physical products then choose between paying now and paying on delivery. You print a waybill, hand the order to your rider and mark it shipped, and the buyer gets a tracking page. Full steps are in the pay on delivery help article.
Two limits to know. There is no built-in deposit for pay-on-delivery orders, so use a payment link if you want one. And your delivery fee is the same across your store, with an optional free-delivery amount, not a different price per area.
Payment on delivery vs paying before delivery
Pay on delivery wins buyers who do not trust you yet. Paying before delivery protects you from refusals. Many sellers offer both and give a small reason to pay first, such as free delivery. We compare the two in payment before delivery vs pay on delivery.
FAQ
Is payment on delivery the same as cash on delivery?
Yes. The names are interchangeable. Some sellers also take MoMo when the rider arrives.
Can I pay on delivery for a course or an ebook?
No. Digital products are delivered instantly, so they are paid for upfront. On Paylead, pay on delivery is only available for physical products.
Who pays the rider's fee?
The seller decides. Many include it in a delivery fee shown at checkout. Always check the total before you confirm an order.
What if I refuse the item?
You do not pay. The seller bears the cost of the trip, which is why many sellers confirm big orders by phone first.
Is payment on delivery safe?
For buyers, it is one of the safer ways to buy from an unknown seller, because you see the item first. Just agree the price and delivery fee in writing, for example on WhatsApp, before the rider leaves.
Ready to offer it? Create a free Paylead store and turn it on in a few minutes.
