What UPS Collect on Delivery Is

UPS Collect on Delivery (COD) is a service where the recipient pays for a package when it arrives instead of the sender paying upfront. The UPS driver collects payment at the door, then sends that money to the sender. This works for packages shipped within the United States and to most countries worldwide.

The sender arranges the COD shipment through UPS and specifies the amount to collect. The recipient has no choice about whether to pay — if they refuse, the package goes back to the sender, and the sender pays return shipping. This is why COD is most common between people who already know each other or in business-to-business transactions where payment terms have been agreed in advance.

Key Takeaways

  • The UPS driver collects cash, check, or money order from the recipient at delivery and forwards the payment to the sender within a few business days.
  • You set the COD amount when you ship, and UPS charges you a flat fee (currently $6.50 for domestic shipments, though this varies by service level) plus the cost of the shipment itself.
  • The recipient can refuse delivery, in which case the package returns to you and you pay for return shipping.
  • COD is available on most UPS services including Ground, 2nd Day Air, and Next Day Air, but not on certain international routes or to all countries.
  • Payment reaches your UPS account within two to four business days after the driver collects it.

How to Send a Package with UPS Collect on Delivery

Start by creating or logging into your UPS account at ups.com. Click "Ship" and select the service you want (UPS Ground, UPS 2nd Day Air, or another option). Enter the recipient's address and your return address as usual.

When you reach the "Additional Services" section, look for "Collect on Delivery" or "COD" and select it. Enter the exact dollar amount you want collected — this is the amount the driver will ask for at the door. UPS will add the COD fee to your shipping charge. Review your total cost, pay for the shipment, print your label, and pack your box.

If you ship frequently or prefer to arrange COD in person, you can also walk into a UPS Store or UPS Customer Center with your package and ask the representative to add COD to your shipment. They will print the label on the spot and collect payment from you for both shipping and the COD fee.

What Payment Methods the Driver Accepts

UPS drivers collecting COD payments accept cash, personal checks, and money orders. They do not accept credit cards, debit cards, or digital payment apps like Venmo or PayPal. This is why COD works best when both sender and recipient have agreed on the arrangement — the recipient needs to have one of these payment forms ready.

If the recipient does not have cash or a check at the time of delivery, they can refuse the package. The driver will leave a notice, and the package will be returned to you. You will then owe UPS for the return shipping cost in addition to the original shipping fee.

When Payment Reaches Your Account

After the driver collects payment from the recipient, UPS processes the money and deposits it into your UPS account. This typically takes two to four business days. You can then use that credit toward future shipments, or you can request a check or bank transfer if your account is set up for that option.

You can track the status of your COD payment through your UPS account. Log in, find the shipment, and look for the COD status — it will show "Pending" while the package is in transit, "Collected" once the driver has the money, and "Processed" once it has been added to your account balance.

COD Fees and What They Cover

UPS charges a flat COD fee on top of your regular shipping cost. For domestic shipments, this fee is currently $6.50, though UPS occasionally adjusts this amount. International COD shipments may have different fees depending on the destination country.

The COD fee covers UPS's cost of collecting the payment, handling it, and processing it into your account. It does not include the shipping cost itself — you pay both the shipping charge and the COD fee. For example, if you ship a package via UPS Ground for $12 and add COD for $50, your total cost is $12 plus $6.50, and the recipient pays $50 at the door.

Countries and Services That Support COD

COD is available on most UPS domestic services: UPS Ground, UPS 2nd Day Air, UPS Next Day Air, and UPS 3-Day Select. It is also available for international shipments to many countries, including Canada, Mexico, and most of Europe, though the list changes and some destinations do not support it.

Before you ship, check the UPS website or call UPS Customer Service at 1-800-742-5877 to confirm that COD is available to your recipient's location. Some remote areas, military addresses, and certain international routes do not support COD. If COD is not available, you will need to arrange payment another way — such as asking the recipient to pay you before you ship, or using a different payment method after delivery.

What Happens If the Recipient Refuses to Pay

If the recipient refuses to accept the package or does not have the payment ready, the UPS driver will not leave it. Instead, the driver marks the delivery as refused and the package begins its return journey to you. You will receive a notice in your UPS account, and the package will arrive back at your address within a few business days.

When a package is refused, you pay for the return shipping — UPS does not refund the original shipping cost or the COD fee. This is why it is critical to confirm with the recipient beforehand that they are expecting the package and have agreed to the COD amount. If you are shipping to someone you do not know well, COD carries real risk.

Frequently Asked Questions

Can I change the COD amount after I have already shipped the package?

No. Once the label is printed and the package is in the UPS system, you cannot change the COD amount. If you need to adjust the price, you must cancel the shipment (if it has not yet left your location) and create a new label with the correct amount. Contact UPS Customer Service when ready if you realize the amount is wrong before pickup.

What if the recipient pays but then disputes the charge?

UPS does not mediate disputes between sender and recipient over COD payments. Once the driver collects the money, it is treated as final. If the recipient claims they were overcharged or did not agree to the amount, that is a matter between you and them — UPS will not reverse the payment or investigate. This is another reason to confirm the COD amount with the recipient in writing before you ship.

Can I use COD for a package I am sending to a business address?

Yes. COD works at business addresses just as it does at residential addresses. The person who receives the package at the business will need to have payment ready. If the business has a policy against accepting COD shipments, they may refuse it, and the package will be returned to you.

Do I have to use my UPS account balance, or can I request a direct deposit?

By default, COD payments are credited to your UPS account balance, which you can use toward future shipments. If you want the money transferred to your bank account instead, you can request this through your UPS account settings or by calling UPS Customer Service. The process typically takes an additional few business days beyond the standard two to four day processing time.

Is COD insured if the package is lost or damaged?

COD does not automatically include insurance. If you want the package insured for its full value, you must purchase UPS Declared Value coverage separately when you create the shipment. This adds a small fee but protects you if the package is lost or damaged in transit — UPS will compensate you for the loss, and you will still receive the COD payment from the recipient.