USPS Collect on Delivery: How It Works?

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It is a service that allows a sender to mail the merchandise to a recipient who would be responsible for the payment. As soon as the receiver pays the amount, it is immediately transferred to the mailer via check or money order.

USPS Collect on Delivery is specially designed for mailers in payment collection who do not want to go through the waiting period after the delivery. They don’t have to since it’s the recipient who makes the payment. The service is used by senders who need an addressee to pick a particular amount on their behalf. 

This service of USPS most benefits the senders as they are freed from the payment responsibility and can collect the money directly from the receiver. USPS actually collects the money on their behalf and then forwards it to the sender. 

The receiver needs to place the order first and complete all the necessary formalities to avail of this service.

What is USPS Collect On Delivery and How to Use it?

How to Mail COD With USPS?

It is very easy to mail COD with USPS if you know the eligibility and understand the step-by-step process to go about it.

You would be required to fill a form and attach it to your mail if you want to avail the COD service with USPS. You will receive a unique identification number once you avail of the COD service to help you with accurate delivery.

Three things that you need to keep in mind are that: 

  • The recipient should order the shipment for the sender to avail of the COD service.
  • The shipment amount cannot exceed the amount of $1000
  • COD mails must be deposited at the post office either directly by the sender or via a local carrier.

Now, the recipient can choose to make the payment in two different ways:

  • Check
  • Cash

In case the payment is made in check, then USPS simply forwards the check to the sender. And if the payment is made in cash, USPS will issue a money order of the same amount and send it to the mailer.

Make sure that you address the mail accurately. Consider typing and printing out the address to ensure that it is legible.

If you wish to protect your mail or receive delivery confirmation, you can use USPS’s additional services like insurance.

How to Mail a Package COD? (USPS)

Now that you have acquired a good understanding of the COD mailing with USPS, it’s time to go into the details. So, here are the steps to follow to mail a package COD with USPS:

  • Step 1: Prepare the mail you want to send with COD before taking it to the post office.
  • Step 2: Select the mailing option as applicable.
  • Step 3: Mention if you need any additional services like return receipt or delivery confirmations.
  • Step 4: Collect the PS 3816 form from the post office and fill it out correctly to avail of the COD service.
  • Step 5: Attach this form to your mail, above the delivery address or the return address, to let the service provider know that you are looking for a COD service. Do not just drop it in the mailbox.
  • Step 6: Ship the parcel with USPS service and notify the recipient of the COD shipment. The USPS mail carrier will collect the payment amount from the receiver upon delivery and forward it to you.

Eligibility for USPS Collect on Delivery

There are a few criteria that your mail needs to fulfill to make it eligible for availing of the COD service of USPS.

Firstly, the service is available to the following mailing classes only:

  • Priority Mail.
  • Priority Mail Express.
  • First Class Mail.
  • Parcel Select.
  • Media Mail.
  • Package Services.

However, there are a few additional mailing services that are eligible with COD if the customer is ready to pay an additional service fee to avail them:

  • Restricted Delivery.
  • Registered Mail.
  • Return Receipt.
  • Media Mail.
  • Delivery Confirmation.
  • Signature Confirmation.
  • Special Handling.

Now, the customer must fulfill the following additional conditions to avail of the COD service:

  • The name and complete address of the mailer and the addressee should be there on the package, and it must be legible.
  • The recipient must order the merchandise. 
  • The mailer must guarantee to pay for the service in case there is any return delivery.

Restriction For USPS Collect on Delivery

Now that you know the eligibility for COD services, you must also familiarize yourself with the ineligibility, that is, the restrictions for USPS Collect on Delivery. COD services cannot be used in the following cases:

  • For collection agency
  • Return merchandise that aroused dissatisfaction; unless the new addressee gives advance consent in favor of the return
  • Suppose the mailing includes only billing or statements of account. For a legitimate COD shipment, the due balance of past transactions can be included in the charges with the recipient’s consent in advance.
  • If an exhibitor mails moving-picture films to manufacturers or distributors without sealing them or sending them as insurance or registered mail.
  • Any official mail or shipments made to Armed Forces send to or from APO or FPO address.   

What is USPS S921 Collect on Delivery (COD) Mail 

USPS S921 Collect on Delivery (COD) Mail is the domestic mail manual for USPS that contains detailed information about the COD services. It is designed to provide the customer with an overview of the COD service and other related information like:

  • Eligibility and ineligibility of COD service.
  • Additional Services with COD.
  • Fees and Postage.
  • Notice to Mailer.
  • Altering COD Charges or Address.
  • Registered and Express Mail COD.
  • COD Forms.
  • Nursery Stock.
  • Addressing Form.
  • COD Identifying Number.
  • Mailer Errors.
  • Delays and Delivery.

And several other important information that a customer needs to know before opting for the COD service.

Fees and Payments for USPS Collect on Delivery 

The most important part of USPS COD is the fees and payments offered as the service charge. The customer must pay the applicable COD fee, postage amount, and extra charges for any additional services as requested. 

It is to be noted here that there is no fixed amount. Rather, the COD fee is determined by the amount to be collected or the amount of insurance coverage–whichever is greater.

The COD Fees would include the insurance against rifling, loss, or damage of the mailed package. It also includes the guarantee against failure to receive the money order or check with the payable amount from the recipient. 

However, the postal liability to receive the check or money order is strictly limited to loss in transit only. The USPS service does take the responsibility of the recipient refuses to pay the number of returns the parcel. 

What is USPS Collect on Delivery FAQs

Q. How does collect on delivery work?

The methodology of the COD or Collect on Delivery model is very simple. It is applicable when a customer orders something from an e-commerce site but decides to pay for delivery.

So, the delivery agent collects the payable amount from the customer at the time of delivery. The delivery person then deposits the cash at the local post office via which they had availed the service. The post office then transfers the amount to the e-commerce company that has made the sale.

Q. Does USPS have cod? 

USPS provides the COD or Collect on Delivery Service to its customers. It allows the sender to collect the payable amount directly from the recipient at the time of delivery. Thus, the recipient will be responsible for the payment of merchandise and postage fees and additional charges.

Final Thoughts

That was all you needed to know about the Collect on Delivery service as offered by USPS. While it is very easy to use the COD services from USPS, you must always keep in mind the eligibility and the ineligibility criteria for availing of the service. Hope this article has successfully cleared your concept about the USPS COD service.

Avatar for Jaren Helms

Jaren worked for over a decade in the industry as a Package Handler. He started his career with FedEx but he later also worked with companies like USPS and Deutsche Post.

View all posts by Jaren Helms

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