Cash on Delivery (COD) is the most widely used payment method in Indian e-commerce, accounting for over 70% of orders for several businesses. By allowing customers to pay only upon delivery, COD builds trust, especially among consumers new to your brand or to online shopping.

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How COD Works with Cashfree Payments

With Cashfree Payments, Cash on Delivery (COD) is simple to set up and manage. Here’s how it works:
  1. Order Completion - The customer selects COD at checkout, and Cashfree records the transaction with a status of SUCCESS for the payment mode Cash on Delivery.
  2. Status Update - The order status is marked as PENDING on Shopify. For custom integrations, you can check the order status using webhooks and update accordingly.
Cashfree does not provide services for physically collecting cash payments from customers.

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Managing COD with Cashfree

Cashfree enhances COD with flexible management options to suit your business needs:
  1. Add or Remove Fees - Adjust COD fees directly through the Cashfree Dashboard, allowing you to add a convenience fee or waive it based on your strategy.
  2. Set Restrictions - Customize COD availability by blacklisting specific pincodes, customers (based on phone numbers), or products. This ensures COD is only offered where it aligns with your business goals.
  3. RTO Intelligence - Cashfree’s RTO intelligence analyzes historical shipping data and hides COD for high-risk customers automatically.
  4. Unified Payment Tracking - Track both COD and online payments from one dashboard, using Cashfree’s analytics tools to gain deeper insights.

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Setting Up Cash on Delivery

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Step 1: Displaying COD on Checkout

  1. Go to the One Click Checkout page to activate it for your account.
  2. Navigate to the COD & RTO section, and set the amount range where COD should be available. You can also set a convenience fee for COD here.

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Step 2: Set Restrictions on COD

  1. Go to COD & RTO > Blacklisting.
  2. Choose to blacklist pincodes, customers (phone numbers) or products.
  3. You can add individual entries or upload a bulk list of pincodes, customer phone numbers, or products.
    • For products, ensure the product identifier matches that in your Shopify store.
    • For custom integrations, pass the same identifier as item_id while creating an order with Cashfree.

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Step 3: Enabling RTO Intelligence

  1. Go to COD & RTO > Enablement & Configuration > Enable RTO intelligence.
  2. Enter your shipping company and credentials so that Cashfree can fetch shipping details and improve your overall RTO intelligence.
This feature is available as part of One Click Checkout.Activate One Click Checkout here

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Integrating COD with One Click Checkout

  1. Shopify Integration: Follow the steps to set up One Click Checkout on Shopify.
  2. Custom Integration: For custom integration follow the steps here.
Ensure to check order status and details for Cash on Delivery using webhooks or status APIs to keep the order status updated.